VAT ID as a sole proprietorship?
Summary: lolstickhd has a problem with eBay, which is asking him for a VAT ID even though, as a small business owner, he doesn’t pay VAT. Several participants, including perfect-sally and sunrise1605, explain that small business owners may also need such an ID and give tips on applying for one at the tax office and the Federal Central Tax Office. lolstickhd thanks them for the advice, while bixtron mistakenly assumes that he is doing dropshipping, which lolstickhd denies. It is emphasized that legal preparation is important in order to avoid warning letters.
Hey folks!! Several months ago I registered a business as a sole proprietorship under the small business regulation, and now I’ve received a message from Ebay saying that I need a VAT ID and that I need it within 7 days, otherwise my account will be restricted. Can someone please tell me where I can get one? I was fairly sure I didn’t need one, since I stay below the VAT threshold, and I haven’t received this ID so far either, so I wouldn’t need it otherwise. Unfortunately, the online application isn’t working, for possible reasons:
1. Small business: By participating in the small business regulation, you are recorded at your tax office with a VAT code letter designated for small businesses. As a result, the Federal Central Tax Office cannot issue a VAT ID number. Please contact your tax office to request a change of the code letter.
2. New business formation The Federal Central Tax Office does not yet have any information about the VAT registration of your business with the specified tax office. Please contact your responsible tax office for recording/clarification. Please note that some time may pass between registration with the tax office and the transfer of the data by the tax office to the Federal Central Tax Office. A VAT identification number (USt-IdNr.) can only be issued after the data has been successfully transmitted.
3. The VAT registration of your business has been terminated. However, current information about a new registration, for example through resuming VAT-liable activities, is not yet available to the Federal Central Tax Office. In this case, the procedure mentioned under No. 2 also applies.
bixtron
·2 weeks agoOh yeah... the "I'll just do it" dropshipping... The goods are in the A-warehouse, like always?... Meh!
lolstickhd
OP2 weeks agoNeither dropshipping nor the other thing. But as long as you write something
bixtron
·2 weeks agoNot meant in a bad way - but it still looks a lot like dropshipping, or are those all your photos? The goods have to come from somewhere, and I strongly doubt that you order from the Chinese guy and then plaster your apartment with it...
I can also find all the items on Amazon, identical 1:1.
If you want to enter this world, you have to prepare accordingly beforehand, as was already advised to you yesterday (WRB etc.) - otherwise, sooner or later you'll end up getting mail with cease-and-desist letters and injunctions. You still refuse to take it back...
bixtron
·1 week agoWas probably more than just "just write something" - you still haven't changed anything..
Well, everyone eventually gets what they're asking for...
cosmoretroshop
·2 weeks agoFederal Central Tax Office (BZSt). In the past, you applied for the number through the tax office, and a few hours later you could call in, and the BZSt would tell you what it was.
Nowadays you can apply for the VAT ID online, but for "data protection reasons" (for a public tax number...) you have to wait for a letter.
sunrise1605
·2 weeks agoBut on the BZSt. website, you can’t select anywhere online that you do NOT want/need to become liable for VAT.
cosmoretroshop
·2 weeks agoApplication to the tax office (small business regulation). The VAT ID always comes from the BZSt
sunrise1605
·2 weeks agoI know that the ID comes from the BZSt; I never claimed anything else.
lolstickhd
OP2 weeks agoThanks, I’ve written to them now and otherwise I’ll call tomorrow and ask around
kreisgutshop
·2 weeks agoYou get them from the tax office. I had the whole thing handled through the tax advisor. It went relatively quickly
sunrise1605
·2 weeks agoHi @lolstickhd
Believe it or not, the VAT ID has nothing to do with VAT.
Even as a small business owner, you can have one and you have to on eBay and on other platforms too.
You just have to make sure that the tax office doesn't automatically make you liable for VAT, because apparently they still don't get it.
Here's a bit of reading:
https://www.it-recht-kanzlei.de/duerfen-kleinunternehmer-umsatzsteueridentifikationsnummer-beantragen.html
https://www.it-recht-kanzlei.de/ust-idnr-pflicht-verkauf-ebay-marktplaetze.html
lolstickhd
OP2 weeks agoThanks!
perfect-sally
·2 weeks ago · EditedEvery business seller needs a VAT ID on ebay, whether they are a small business owner or not.
In general, the tax office is responsible.
And business sellers also have some obligations that don’t seem to be clear to you! Who advised you?
No returns? As a business seller, that’s not allowed at all!
I don’t see any cancellation policy.
I don’t see a model cancellation form.
I don’t see any notice about the small business regulation.
I also don’t see a privacy policy.
Are you registered with LUCID? Without registration, the next problem comes up and ebay will suspend your account because of it.