Internet shop, remote Sales and VAT

Internet shop, remote

Sales and VAT  

 

Question:

Hello,
I have a question about making distance sales via an online shop to buyers in Israel. Upon receipt of a request from a customer in the online store, a request is automatically generated in a German online shop where goods are bought and directly traveled to the final buyer in Israel. The payment goes to the Bulgarian internet shop and from there it pays the German one.
Regarding purchased goods from Germany, how should VAT be treated?
On sales to Israel, how should they be treated under VATA and will be transported from Germany directly to Israel?
Thanks in advance.
Greetings.
 

Answer:

Hello,

The purchase of goods from Germany from your company will be provided with an invoice in which there will be no VAT charged. You will not also be charged VAT because you do not have intra-Community acquisitions - goods do not enter the country but go directly to a "third country" outside the European Union (EU). After you have no intra-Community acquisition (VOC) These invoices should also be included in the VIES declaration. The purchase log is reflected as deliveries without the right to a tax credit.

About sales.

If recipients are legal entities - VAT must not be charged on the invoice you will issue for non-charging purposes. 69, para. 2 in connection with Art. 28, item 2 of the VAT Act. The delivery data will be reflected in her sales log (column 23) and in her return statement for the relevant tax period.

If the recipients are natural persons to whom you will not issue invoices, you may report sales with a collated record, the reason for non-charging is the same.

You should keep in mind that in order to prove that the goods are going to third parties you will have to obtain a document (or a copy thereof) with which the German company sends them to your counterparts in Israel.

We hope we have been useful

Best regards.