Value added tax on marketplace purchases

Value added tax yes or no? At what altitude?

Let us start with the question of value added tax. It is based on the billing address in the Marketplace account and the country of the vendor.

The following cases may occur:

• Billing address has the same country as the supplier and VAT ID is registered: VAT of the country will be charged.
• Billing address has the same country as the supplier and there is no VAT ID registered: VAT of the country will be charged.
• Billing address is different from the supplier’s country and no VAT ID is registered: VAT of the supplier country will be charged.
• Billing address is different from the supplier’s country and VAT ID is registered: VAT is not charged.

The current applicable VAT rates for the countries where the Marketplace is available are:

• Germany 19%
• Italy 22%
• Croatia 25%
• Luxembourg 17%
• Austria 20%
• Slovenia 22%
• Spain 21%

Notice: Swiss customers generally do not pay value added tax.

For more information on VAT ID, see Wikipedia.