Germany - Online Platform VAT Liability Approved

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Further to a recent post, we can bring you news that the German Federal Cabinet has announced its approval of the draft law. This would make online platforms like Amazon and eBay jointly liable for the VAT obligations of sellers using such platforms to sell into Germany.

According to a separate release from the Ministry of Finance, the draft law requires online platforms to track and collect information on all third-party sales to German residents and provide this information to the German tax authority. Online platforms will be held liable for any unpaid VAT unless they fulfil the information collection requirements or exclude the non-compliant third-party sellers from the platform.

The legislative process is expected to be completed by the end of the year so that the new regime can enter into force on 1 January 2019.

Should you require any VAT assistance in Germany, or require any international VAT assistance, please contact us.

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