E-commerce Directive and VAT

From next year, due to the first implementations of the e-commerce directive, there will be a few further changes to the VAT Act, which can be particularly relevant for small online retailers.

The country of destination principle now obliges the residence of non-entrepreneurs to be determined. But this is a challenge, especially for smaller retailers, e.g. on eBay. With the first implementation of the EU e-commerce directive, there will be three new sets in Section 3a para. 5 Set 3-5 of the Value Added Tax Act. It is also mentioned in section 14 para. 7 Sentence 3 UStG simplify invoicing. The new rules provide that the country of destination principle does not apply where the trader is established in only one Member State and the total amount of the remuneration from other services referred to in Paragraph 3a(3) of the treaty is not applicable. 5 Sentence 1 UStG designated recipients, which did not exceed EUR 10,000 in the previous calendar year and did not exceed them in the current calendar year (Section 3a (5) sentence 3 UStG).

Invoicing will be subject to the rules of the home country from 2019, when the mini-one-stop shop is used for transactions that can be taxed in other Member States.

The recasting of Sections 18 Nos. 4c and 4d UStG will in future give small businesses the right to provide entrepreneurs with the right to provide a consolidated tax clarification of the corresponding foreign transactions, according to officially prescribed data set, by remote data transmission until the 20th day after the expiry of each tax period to the Federal Central Tax Office. Here, too, of course, an accomplished tax advisor should help. However, the relevant computer programs will certainly implement the changes quickly.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.