Entrepreneurs who sell goods via an online trading platform should definitely take a look at the general terms and conditions of the respective trading platform, as there are different options for processing sales.
The online trading platforms
- calculate either Fees or
- agree a Discount regulation, according to which the trader invoices his goods with a discount to the trading platform as soon as the sale has been made via the online platform.
If the trader pays monthly or sales-based fees, this is a sales commission that is offset against the sales proceeds of the goods if billing takes place via the online trading platform. This means that the entrepreneur must recognize the undiscounted amount as gross proceeds. The fees must be recognized as operating expenses (brokerage commission). Conclusion: If the entrepreneur only records the amount that is transferred after offsetting, he understates the revenue.
Attention: If the company is based in another EU country, the German entrepreneur may be liable for VAT in accordance with Section 13b UStG, which is due on the agency commission. The tax liability must then be assumed by the business partner.
Practical example:
An entrepreneur sells goods via a trading platform (e.g. eBay) for a total of € 119,000. After deducting the fees of €10,000, he receives an amount of €109,000. If he records the turnover as (€109,000 × 100/119 =) €91,596 and the VAT as €17,403 (€91,596 × 19%), then this is incorrect. It is correct that the assessment basis is €100,000 (= amount before offsetting) because offsetting against the fees does not reduce the revenue. The entrepreneur owes VAT in the amount of (€100,000 × 19% =) €19,000.
Note: If the payment is processed via PayPal, for example, these fees are to be recognized as „incidental costs of monetary transactions“. This means that these fees do not reduce the amount to be recognized as revenue. If a discount arrangement has been agreed (e.g. in the case of items sold directly by Amazon), the trader invoices his goods less a discount agreed from the outset as soon as his goods are sold via the online platform. The basis of assessment is then the amount reduced by the discount less VAT.
Practical example:
A publisher provides Amazon with books that are sold in retail stores (i.e. also on Amazon) for a total of €1,000. According to the agreements between the publisher and Amazon, a discount of 50% has been agreed. Once all the books have been sold, the settlement is as follows:
| Gross price of the books (including 7% VAT) | 1.000,00 € |
| less discount (50%) | 500,00 € |
| Gross proceeds | 500,00 € |
| less sales tax (500 : 107 × 7 =) | - 32,71 € |
| Net proceeds | 467,29 € |
If cash discounts are withheld, these also reduce sales, so that the sales price less discount and less cash discount is to be recognized as revenue.
The One-Stop-Shop special regulation is aimed at entrepreneurs who are based in Germany and who, in return for payment
- provide services to private individuals in Member States of the EU in which they are not established or
- make intra-Community distance sales of goods or
- provide an electronic interface through the use of which they facilitate the supply of goods within a Member State by a taxable person not established in the Community and are therefore treated as if they had supplied the goods themselves.
In addition, the procedure is aimed at entrepreneurs who are not based in the European Union and have a facility in Germany (e.g. a warehouse) from which goods are supplied to private individuals in other EU Member States.