Discussion Forum: Thread 272078

 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 01:50
 Subject: Terms of Service Update for Tax Compliance
 Viewed: 1483 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
Dear BrickLink member,

Over the next few weeks, BrickLink will undergo some changes that will affect
our membership. These changes are necessary for our platform to be compliant
with sales and use tax and VAT legislation where applicable. We also feel they
will help build our reputation as a well-regarded ecommerce site. These changes
are broken down into three categories outlined below:

1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.

3) We will soon present you with a revised Terms of Service. You will have about
a week to read the new terms before the terms go into effect on Aug 4, 2020.
The major changes are related to the charging and collecting of taxes and the
change of company from BrickLink Limited to LEGO BrickLink, Inc.

For further information about these changes, please visit this FAQ page:

https://www.bricklink.com/help.asp?helpID=2501

If you have questions, please reply to this post or send a message to customersupport@bricklink.com


The BrickLink Team
 Author: bje View Messages Posted By bje
 Posted: Jul 24, 2020 02:30
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 224 times
 Topic: Administrative
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bje (1420)

Location:  South Africa, Western Cape
Member Since Contact Type Status
May 24, 2010 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: JE Bricks

4. What payment methods are accepted for transactions involving US sales tax?

There are two accepted payment methods - onsite PayPal and onsite Stripe.



16. Is this another effort by BrickLink to get everybody to use onsite payment
methods only?

No, this is about our obligation to collect sales tax directly from buyers. Due
to the flexibility required to be a worldwide marketplace, we will likely be
offering offsite payment methods for a long time to come.



This is contradictory. If your obligation is to collect the taxes on behalf of
third parties, it does not matter how it is paid. So at the time this is implemented,
no order to California and Connecticut can be completed with an offsite method
as the tax cannot be paid over to BL except by way of onsite payments. Surely
it is understandable that BL is now forcing all sellers to sell to those states
and ultimately the whole USA using only onsite methods, thus the site is moving
to only onsite methods as far as the USA is concerned.

Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Thanks for the heads up as well. What day exactly are you going to be requiring
users to agree to the new terms: 28 July, 4 August or 5 August? As that will
obviously be the day that the site updates will come through. I might have some
more questions at a later time.





In Administrative, Admin_Russell writes:
  Dear BrickLink member,

Over the next few weeks, BrickLink will undergo some changes that will affect
our membership. These changes are necessary for our platform to be compliant
with sales and use tax and VAT legislation where applicable. We also feel they
will help build our reputation as a well-regarded ecommerce site. These changes
are broken down into three categories outlined below:

1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.

3) We will soon present you with a revised Terms of Service. You will have about
a week to read the new terms before the terms go into effect on Aug 4, 2020.
The major changes are related to the charging and collecting of taxes and the
change of company from BrickLink Limited to LEGO BrickLink, Inc.

For further information about these changes, please visit this FAQ page:

https://www.bricklink.com/help.asp?helpID=2501

If you have questions, please reply to this post or send a message to customersupport@bricklink.com


The BrickLink Team
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 02:52
 Subject: Re: Terms of Service Update for Tax Compliance
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 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

  Thanks for the heads up as well. What day exactly are you going to be requiring
users to agree to the new terms: 28 July, 4 August or 5 August? As that will
obviously be the day that the site updates will come through. I might have some
more questions at a later time.

New Terms: August 4th at 6 PM BrickLink time. But US sales tax implementation
won't be deployed until the end of September.
 Author: kzinti View Messages Posted By kzinti
 Posted: Jul 24, 2020 03:03
 Subject: Re: Terms of Service Update for Tax Compliance
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 Topic: Administrative
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kzinti (4327)

Location:  USA, Missouri
Member Since Contact Type Status
Jun 20, 2001 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: The Brick Bin
In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

The lyrics of Rush: Subdivisions comes to mind. "Conform or be cast out"
 Author: popsicle View Messages Posted By popsicle
 Posted: Jul 24, 2020 03:04
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 109 times
 Topic: Administrative
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popsicle (5848)

Location:  USA, Washington
Member Since Contact Type Status
Feb 21, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: ConstrucToys
In Administrative, kzinti writes:
  In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

The lyrics of Rush: Subdivisions comes to mind. "Conform or be cast out"

+1
 Author: Adjour View Messages Posted By Adjour
 Posted: Jul 24, 2020 16:50
 Subject: Re: Terms of Service Update for Tax Compliance
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Adjour (1017)

Location:  USA, California
Member Since Contact Type Status
Aug 1, 2016 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: The Chili is a Bit Spicy
In Administrative, kzinti writes:
  In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

The lyrics of Rush: Subdivisions comes to mind. "Conform or be cast out"


This is mandated by the government. Not sure if you are trying to shame the site,
because if so, it is misguided.
 Author: kzinti View Messages Posted By kzinti
 Posted: Jul 24, 2020 19:38
 Subject: Re: Terms of Service Update for Tax Compliance
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 Topic: Administrative
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kzinti (4327)

Location:  USA, Missouri
Member Since Contact Type Status
Jun 20, 2001 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: The Brick Bin
In Administrative, Adjour writes:
  In Administrative, kzinti writes:
  In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

The lyrics of Rush: Subdivisions comes to mind. "Conform or be cast out"


This is mandated by the government. Not sure if you are trying to shame the site,
because if so, it is misguided.

Interesting opinion. Site Shaming? No. I understand the mandate, and the position
that BrickLink is currently in. However, to cut Buyers off from purchasing goods
from Sellers who do not use Onsite payment options as stated, raises my hackles.
BrickLink can add into any transaction the required tax before invoicing an order,
and if not paid via an Onsite payment method, they can then bill those Sellers
the amount of the taxes as part of their monthly service fees. Thus, the 'Conform
or be cast out' comment. Sellers who do not 'conform' to accept Onsite
payments only will slowly, inevitably, be 'cast out', choked completely
out of the sales market.
 Author: George_Lucy View Messages Posted By George_Lucy
 Posted: Jul 29, 2020 08:13
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 74 times
 Topic: Administrative
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George_Lucy (12368)

Location:  USA, New Jersey
Member Since Contact Type Status
Jan 16, 2008 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: George's Brick Shop
EBay is doing the same thing. You HAVE to opt in to their manged payments or
you can’t sell.

n Administrative, kzinti writes:
  In Administrative, Adjour writes:
  In Administrative, kzinti writes:
  In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

The lyrics of Rush: Subdivisions comes to mind. "Conform or be cast out"


This is mandated by the government. Not sure if you are trying to shame the site,
because if so, it is misguided.

Interesting opinion. Site Shaming? No. I understand the mandate, and the position
that BrickLink is currently in. However, to cut Buyers off from purchasing goods
from Sellers who do not use Onsite payment options as stated, raises my hackles.
BrickLink can add into any transaction the required tax before invoicing an order,
and if not paid via an Onsite payment method, they can then bill those Sellers
the amount of the taxes as part of their monthly service fees. Thus, the 'Conform
or be cast out' comment. Sellers who do not 'conform' to accept Onsite
payments only will slowly, inevitably, be 'cast out', choked completely
out of the sales market.
 Author: Stone_Goblin View Messages Posted By Stone_Goblin
 Posted: Jul 29, 2020 22:05
 Subject: Re: Terms of Service Update for Tax Compliance
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 Topic: Administrative
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Stone_Goblin (2864)

Location:  USA, Vermont
Member Since Contact Type Status
Sep 21, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: LibertyBRICK
In Administrative, George_Lucy writes:
  EBay is doing the same thing. You HAVE to opt in to their manged payments or
you can’t sell.

n Administrative, kzinti writes:
  In Administrative, Adjour writes:
  In Administrative, kzinti writes:
  In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

The lyrics of Rush: Subdivisions comes to mind. "Conform or be cast out"


This is mandated by the government. Not sure if you are trying to shame the site,
because if so, it is misguided.

Interesting opinion. Site Shaming? No. I understand the mandate, and the position
that BrickLink is currently in. However, to cut Buyers off from purchasing goods
from Sellers who do not use Onsite payment options as stated, raises my hackles.
BrickLink can add into any transaction the required tax before invoicing an order,
and if not paid via an Onsite payment method, they can then bill those Sellers
the amount of the taxes as part of their monthly service fees. Thus, the 'Conform
or be cast out' comment. Sellers who do not 'conform' to accept Onsite
payments only will slowly, inevitably, be 'cast out', choked completely
out of the sales market.

A few years ago, I remember eBay throwing error messages saying you couldn't
pay for something unless you used PayPal to do so. Now most of that process is
conducted transparently, as debit/credit card payments then go through paypal.
I think your comment about managed payments via PayPal is proof of the way their
policy has set up a fee gathering mechanism.

John @ LibertyBRICK
 Author: BrickAThon View Messages Posted By BrickAThon
 Posted: Jul 29, 2020 15:58
 Subject: Re: Terms of Service Update for Tax Compliance
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 Topic: Administrative
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BrickAThon (31521)

Location:  USA, Oregon
Member Since Contact Type Status
Sep 9, 2003 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: BrickAThon
In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

Are you going to allow the option to input your own Reseller Certificate (or
have TLG confirm this) to allow other sellers who buy product to NOT pay the
Sales Tax? Since we are currently in Oregon, this doesn't really concern
us, but it DOES concern the rest of the States that collect this tax. If the
buyer has to submit back to their State to re-collect the Sales Tax, it can be
done, but it's an extra hassle, and might keep some of the larger sellers
from buying from others if that can't be added. Wondering if that's a
thought process that has happened.

A lot of customizers, who are registered businesses, buy from people like us
on BrickLink and will most likely not want to have to pay the Sales Tax up front
and then re-collect it on the back end, if it is possible to not do so. To be
honest, this could also lead to BrickLink losing money as businesses like this
will probably be happy to come to larger resellers on the side and ask them for
sales of things - circumventing BrickLink altogether if there's no work around.

Sorry in advance if this question has already been addressed - I'm trying
to gnaw through this long thread now.

Tracy
BrickAThon
BulkAThon
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 29, 2020 16:38
 Subject: Re: Terms of Service Update for Tax Compliance
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, BrickAThon writes:
  In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

Are you going to allow the option to input your own Reseller Certificate (or
have TLG confirm this) to allow other sellers who buy product to NOT pay the
Sales Tax? Since we are currently in Oregon, this doesn't really concern
us, but it DOES concern the rest of the States that collect this tax. If the
buyer has to submit back to their State to re-collect the Sales Tax, it can be
done, but it's an extra hassle, and might keep some of the larger sellers
from buying from others if that can't be added. Wondering if that's a
thought process that has happened.

We've thought about many things, but we don't really know the effect
of everything until it goes live. I can see BrickLink starting to handle tax
exemptions at some point, but it's another workload and requires more admin
tools, and we will not be able to start out that way.

  A lot of customizers, who are registered businesses, buy from people like us
on BrickLink and will most likely not want to have to pay the Sales Tax up front
and then re-collect it on the back end, if it is possible to not do so. To be
honest, this could also lead to BrickLink losing money as businesses like this
will probably be happy to come to larger resellers on the side and ask them for
sales of things - circumventing BrickLink altogether if there's no work around.

Yeah, order circumvention and using other sites are certainly things that could
happen.
 Author: Cali_Bricks2 View Messages Posted By Cali_Bricks2
 Posted: Jul 30, 2020 12:16
 Subject: Re: Terms of Service Update for Tax Compliance
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 Topic: Administrative
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Cali_Bricks2 (7863)

Location:  USA, California
Member Since Contact Type Status
Mar 17, 2008 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Cali-Bricks2
In Administrative, Admin_Russell writes:
  In Administrative, BrickAThon writes:
  In Administrative, Admin_Russell writes:
  In Administrative, bje writes:

  Have you given thought as to how to exclude those states from shipping methods
and payment methods, since it is not possible to do so right now?

Yes. Buyers from states where we collect tax will not be able to buy from sellers
who do not offer those payment methods.

Are you going to allow the option to input your own Reseller Certificate (or
have TLG confirm this) to allow other sellers who buy product to NOT pay the
Sales Tax? Since we are currently in Oregon, this doesn't really concern
us, but it DOES concern the rest of the States that collect this tax. If the
buyer has to submit back to their State to re-collect the Sales Tax, it can be
done, but it's an extra hassle, and might keep some of the larger sellers
from buying from others if that can't be added. Wondering if that's a
thought process that has happened.

We've thought about many things, but we don't really know the effect
of everything until it goes live. I can see BrickLink starting to handle tax
exemptions at some point, but it's another workload and requires more admin
tools, and we will not be able to start out that way.

  A lot of customizers, who are registered businesses, buy from people like us
on BrickLink and will most likely not want to have to pay the Sales Tax up front
and then re-collect it on the back end, if it is possible to not do so. To be
honest, this could also lead to BrickLink losing money as businesses like this
will probably be happy to come to larger resellers on the side and ask them for
sales of things - circumventing BrickLink altogether if there's no work around.

Yeah, order circumvention and using other sites are certainly things that could
happen.

Hello I'm not really sure how this is going to go. Do we collect the tax
then pay bricklink? I'm confused???
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Jul 30, 2020 12:27
 Subject: Re: Terms of Service Update for Tax Compliance
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 Topic: Administrative
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SylvainLS (32)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, Cali_Bricks2 writes:
  […]
Hello I'm not really sure how this is going to go. Do we collect the tax
then pay bricklink? I'm confused???

No:

1. The seller invoices for the goods only.
2. BL adds the taxes through PayPal/Stripe online payment.
3. The buyer pays for the good and the taxes.
4. The money is automagically split by PayPal/Stripe so that the seller gets
the money for the goods and BL gets the money for the taxes.
5. BL gives the taxes to California/Connecticut/….

As a seller, you don’t have to do anything.  BL does everything for you.
 Author: jennnifer View Messages Posted By jennnifer
 Posted: Jul 30, 2020 12:45
 Subject: Re: Terms of Service Update for Tax Compliance
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jennnifer (2592)

Location:  USA, Illinois
Member Since Contact Type Status
Sep 8, 2009 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: Old Grey Bricks
In Administrative, SylvainLS writes:

  4. The money is automagically split by PayPal/Stripe so that the seller gets
the money for the goods and BL gets the money for the taxes.

Don't know if you meant this or if it's just a great typo but I just
love the new word:

automagically

!! So many great uses.

Jen
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Jul 30, 2020 12:49
 Subject: Re: Terms of Service Update for Tax Compliance
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SylvainLS (32)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, jennnifer writes:
  In Administrative, SylvainLS writes:

  4. The money is automagically split by PayPal/Stripe so that the seller gets
the money for the goods and BL gets the money for the taxes.

Don't know if you meant this or if it's just a great typo but I just
love the new word:

automagically

!! So many great uses.

Jen

I love it too   but it’s not my child, it’s computing jargon.
 Author: popsicle View Messages Posted By popsicle
 Posted: Jul 24, 2020 02:34
 Subject: Re: Terms of Service Update for Tax Compliance
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popsicle (5848)

Location:  USA, Washington
Member Since Contact Type Status
Feb 21, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: ConstrucToys
  The BrickLink Team

When yet ignorant of TLG's interest in BL. Illustrating how invaluable information
really is: https://www.bricklink.com/message.asp?ID=1147463

The popsicle team of one
 Author: misbi View Messages Posted By misbi
 Posted: Jul 24, 2020 02:40
 Subject: Re: Terms of Service Update for Tax Compliance
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misbi (7155)

Location:  United Kingdom, Scotland
Member Since Contact Type Status Collage
Nov 25, 2001 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
View Collage Pic
Store: Brickshop UK
What's the situation regarding UK sellers paying VAT in light of Brexit?

A) at Aug 5th
B) at Jan 1st 2021
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 02:57
 Subject: Re: Terms of Service Update for Tax Compliance
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, misbi writes:
  What's the situation regarding UK sellers paying VAT in light of Brexit?

A) at Aug 5th
B) at Jan 1st 2021

For VAT purposes, the UK is still (at present) being considered part of Europe,
so on Aug 5th, UK sellers will see VAT charges appear on their invoice, unless
they have VAT enabled on BrickLink.

As to when we would stop collecting such VAT due to Brexit, I'll ask about
that and put it up in the FAQs.
 Author: misbi View Messages Posted By misbi
 Posted: Jul 24, 2020 03:14
 Subject: Re: Terms of Service Update for Tax Compliance
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misbi (7155)

Location:  United Kingdom, Scotland
Member Since Contact Type Status Collage
Nov 25, 2001 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
View Collage Pic
Store: Brickshop UK
In Administrative, Admin_Russell writes:
  In Administrative, misbi writes:
  What's the situation regarding UK sellers paying VAT in light of Brexit?

A) at Aug 5th
B) at Jan 1st 2021

For VAT purposes, the UK is still (at present) being considered part of Europe,
so on Aug 5th, UK sellers will see VAT charges appear on their invoice, unless
they have VAT enabled on BrickLink.

As to when we would stop collecting such VAT due to Brexit, I'll ask about
that and put it up in the FAQs.

That might be the first tangible benefit of Brexit to be identified 😂
 Author: FlyingEugene View Messages Posted By FlyingEugene
 Posted: Jul 24, 2020 15:30
 Subject: Re: Terms of Service Update for Tax Compliance
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FlyingEugene (839)

Location:  USA, APO/FPO
Member Since Contact Type Status Collage
Nov 6, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
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Store Closed Store: FlyingEugene's Fun Factory
Russell,

I am exempt from paying VAT in Germany, and I buy from German BL sellers. Normally,
in brick and mortar stores, I use a form that allows the vendor to not charge
me VAT, and they are not responsible for it. Will BL allow my VAT exemption,
or do I now have to pay a tax in which I am exempt?

Thanks,
Kyle

In Administrative, Admin_Russell writes:
  In Administrative, misbi writes:
  What's the situation regarding UK sellers paying VAT in light of Brexit?

A) at Aug 5th
B) at Jan 1st 2021

For VAT purposes, the UK is still (at present) being considered part of Europe,
so on Aug 5th, UK sellers will see VAT charges appear on their invoice, unless
they have VAT enabled on BrickLink.

As to when we would stop collecting such VAT due to Brexit, I'll ask about
that and put it up in the FAQs.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 18:20
 Subject: Re: Terms of Service Update for Tax Compliance
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, FlyingEugene writes:
  Russell,

I am exempt from paying VAT in Germany, and I buy from German BL sellers. Normally,
in brick and mortar stores, I use a form that allows the vendor to not charge
me VAT, and they are not responsible for it. Will BL allow my VAT exemption,
or do I now have to pay a tax in which I am exempt?

Thanks,
Kyle

If your BrickLink country is the USA, you should not have to pay VAT on your
orders.
 Author: Tracyd View Messages Posted By Tracyd
 Posted: Jul 24, 2020 18:25
 Subject: Re: Terms of Service Update for Tax Compliance
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Tracyd (254)

Location:  USA, Texas
Member Since Contact Type Status
May 29, 2003 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: Tracyd's
In Administrative, Admin_Russell writes:
  In Administrative, FlyingEugene writes:
  Russell,

I am exempt from paying VAT in Germany, and I buy from German BL sellers. Normally,
in brick and mortar stores, I use a form that allows the vendor to not charge
me VAT, and they are not responsible for it. Will BL allow my VAT exemption,
or do I now have to pay a tax in which I am exempt?

Thanks,
Kyle

If your BrickLink country is the USA, you should not have to pay VAT on your
orders.

He's a Marine according to his About Me page and based on the APO/FPO designation
deployed to Germany. However I believe your answer is still correct. Sales tax
and VAT is based on the location of the buyer not the seller for E-Commerce purposes.
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Jul 24, 2020 18:37
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 52 times
 Topic: Administrative
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SylvainLS (32)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, Tracyd writes:
  […]
Sales tax
and VAT is based on the location of the buyer not the seller for E-Commerce purposes.

Not exactly for VAT:

1. It’s the seller’s country’s VAT rate that’s used for goods.

2. If you’re not a EU resident, you don’t have to pay VAT and can ask for a refund
(need to keep all the invoices/receipts to fill a form when back home or use
a special card you get at customs when entering that memorises the VAT you paid
for you but that doesn’t work everywhere).
 Author: BigBBricks View Messages Posted By BigBBricks
 Posted: Jul 28, 2020 19:35
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 73 times
 Topic: Administrative
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BigBBricks (10507)

Location:  USA, Pennsylvania
Member Since Contact Type Status
Dec 2, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Big B Bricks
In Administrative, Admin_Russell writes:
  In Administrative, FlyingEugene writes:
  Russell,

I am exempt from paying VAT in Germany, and I buy from German BL sellers. Normally,
in brick and mortar stores, I use a form that allows the vendor to not charge
me VAT, and they are not responsible for it. Will BL allow my VAT exemption,
or do I now have to pay a tax in which I am exempt?

Thanks,
Kyle

If your BrickLink country is the USA, you should not have to pay VAT on your
orders.

As a deployed member of the military they are also exempt from state taxes if
they order from a US store since he is not residing currently stateside, will
BrickLink have a solution for the hundreds of active duty US military deployed
overseas in this same situation? A rule could be built around the US addresses
with APO/MPO/DPO/FPO as the exemption.
 Author: Jaccsen View Messages Posted By Jaccsen
 Posted: Jul 28, 2020 19:43
 Subject: (Cancelled)
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Jaccsen (132)

Location:  USA, South Carolina
Member Since Contact Type Status
Feb 1, 2020 Contact Member Buyer
Buying Privileges - OK
(Cancelled)
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 28, 2020 20:10
 Subject: Re: Terms of Service Update for Tax Compliance
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, BigBBricks writes:
  In Administrative, Admin_Russell writes:
  In Administrative, FlyingEugene writes:
  Russell,

I am exempt from paying VAT in Germany, and I buy from German BL sellers. Normally,
in brick and mortar stores, I use a form that allows the vendor to not charge
me VAT, and they are not responsible for it. Will BL allow my VAT exemption,
or do I now have to pay a tax in which I am exempt?

Thanks,
Kyle

If your BrickLink country is the USA, you should not have to pay VAT on your
orders.

As a deployed member of the military they are also exempt from state taxes if
they order from a US store since he is not residing currently stateside, will
BrickLink have a solution for the hundreds of active duty US military deployed
overseas in this same situation? A rule could be built around the US addresses
with APO/MPO/DPO/FPO as the exemption.

I think it's set up to exclude them. We only will collect state taxes on
orders going to those states in which we have registered.
 Author: BigBBricks View Messages Posted By BigBBricks
 Posted: Jul 28, 2020 22:02
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 68 times
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BigBBricks (10507)

Location:  USA, Pennsylvania
Member Since Contact Type Status
Dec 2, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Big B Bricks
In Administrative, Admin_Russell writes:
  In Administrative, BigBBricks writes:
  In Administrative, Admin_Russell writes:
  In Administrative, FlyingEugene writes:
  Russell,

I am exempt from paying VAT in Germany, and I buy from German BL sellers. Normally,
in brick and mortar stores, I use a form that allows the vendor to not charge
me VAT, and they are not responsible for it. Will BL allow my VAT exemption,
or do I now have to pay a tax in which I am exempt?

Thanks,
Kyle

If your BrickLink country is the USA, you should not have to pay VAT on your
orders.

As a deployed member of the military they are also exempt from state taxes if
they order from a US store since he is not residing currently stateside, will
BrickLink have a solution for the hundreds of active duty US military deployed
overseas in this same situation? A rule could be built around the US addresses
with APO/MPO/DPO/FPO as the exemption.

I think it's set up to exclude them. We only will collect state taxes on
orders going to those states in which we have registered.

My concern was more for orders that originate in states that have an outgoing
use tax, a buyer would have to pay regardless of what US state they lived in
and since deployed US forces have a US address but an out of country address,
there may be a conflict as they are exempt from all state taxes and BL could
be held accountable on a fed level instead of state if action were taken. I know
that a few hundred of users aren't a lot of cases but might be best to plan
ahead?

Side note, thanks for all of the explanations and speed of responses. I also
appreciate the use of the mass mailing for the new TOS but hope it would be used
to issues like the tax issue as well in the future. What are the chances BL could
have an opt in distribution for major/minor changes to the system that affect
sellers/buyers?
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 29, 2020 00:43
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 116 times
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, BigBBricks writes:

  My concern was more for orders that originate in states that have an outgoing
use tax, a buyer would have to pay regardless of what US state they lived in
and since deployed US forces have a US address but an out of country address,
there may be a conflict as they are exempt from all state taxes and BL could
be held accountable on a fed level instead of state if action were taken. I know
that a few hundred of users aren't a lot of cases but might be best to plan
ahead?

Our third party solution takes care of all this kind of thing. And we have people
on our team that have been handling these kinds of taxes for many years. So I'm
pretty sure the military addresses will not come as a surprise.

  Side note, thanks for all of the explanations and speed of responses. I also
appreciate the use of the mass mailing for the new TOS but hope it would be used
to issues like the tax issue as well in the future. What are the chances BL could
have an opt in distribution for major/minor changes to the system that affect
sellers/buyers?

We are seriously considering a number of new ways to communicate regularly with
our userbase. An email blast always has a big effect, but we are looking also
at more targeted lists where users could sign up for certain kinds of content.
The first of these lists would be a catalog newsletter of sorts that would give
highlights of recent changes, discussions of proposed changes and even a few
polls for hot button issues. A monthly output seems best to start with, and I
could see something like that starting up within a few weeks.

Depending on the success of that, we may try it with other groups - sellers come
to mind.
 Author: Shintaku View Messages Posted By Shintaku
 Posted: Jul 24, 2020 03:08
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 185 times
 Topic: Administrative
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Shintaku (2353)

Location:  Italy, Lombardia
Member Since Contact Type Status Collage
Jan 17, 2011 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
View Collage Pic
Store: 06 PIZZABRICK -SAVE-
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.
 Author: popsicle View Messages Posted By popsicle
 Posted: Jul 24, 2020 03:12
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 125 times
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popsicle (5848)

Location:  USA, Washington
Member Since Contact Type Status
Feb 21, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: ConstrucToys
In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

No. You'll not receive less money, the buyer will pay more. BL is brokering
for the respective states in collecting the funds.
 Author: Shintaku View Messages Posted By Shintaku
 Posted: Jul 24, 2020 03:15
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 97 times
 Topic: Administrative
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Shintaku (2353)

Location:  Italy, Lombardia
Member Since Contact Type Status Collage
Jan 17, 2011 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
View Collage Pic
Store: 06 PIZZABRICK -SAVE-
In Administrative, popsicle writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

No. You'll not receive less money, the buyer will pay more. BL is brokering
for the respective states in collecting the funds.

There is one thing that I am not very sure about.
Is it legal to pay two times taxes for the same object?
I mean, pick this case.
I buy a LEGO box, so I do pay the taxes on that. And that's fine.
Then I don't want to play with that any more and and I sell that on bricklink
as USED TOY.
So in the US people have to pay AGAIN the taxes for an object which had already
taxes paid?

That is quite unfair on my perspective.
 Author: popsicle View Messages Posted By popsicle
 Posted: Jul 24, 2020 03:19
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 100 times
 Topic: Administrative
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popsicle (5848)

Location:  USA, Washington
Member Since Contact Type Status
Feb 21, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: ConstrucToys
In Administrative, Shintaku writes:
  In Administrative, popsicle writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

No. You'll not receive less money, the buyer will pay more. BL is brokering
for the respective states in collecting the funds.

There is one thing that I am not very sure about.
Is it legal to pay two times taxes for the same object?
I mean, pick this case.
I buy a LEGO box, so I do pay the taxes on that. And that's fine.
Then I don't want to play with that any more and and I sell that on bricklink
as USED TOY.
So in the US people have to pay AGAIN the taxes for an object which had already
taxes paid?

That is quite unfair on my perspective.

My son just today related to me a conversation he had with his corporate boss,
and I paraphrase: every time a dollar is moved it's taxed.
 Author: kzinti View Messages Posted By kzinti
 Posted: Jul 24, 2020 03:24
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 74 times
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kzinti (4327)

Location:  USA, Missouri
Member Since Contact Type Status
Jun 20, 2001 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: The Brick Bin
  So in the US people have to pay AGAIN the taxes for an object which had already
taxes paid?

That is quite unfair on my perspective.

They tax you when you earn it, they tax you when you buy, they tax you when you
sell. We've got taxes on our taxes over here.
 Author: StarBrick View Messages Posted By StarBrick
 Posted: Jul 24, 2020 07:08
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 75 times
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StarBrick (5564)

Location:  Netherlands, Gelderland
Member Since Contact Type Status
Oct 18, 2008 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: StarBrick's BrickShop
In Administrative, kzinti writes:
  
They tax you when you earn it, they tax you when you buy, they tax you when you
sell. We've got taxes on our taxes over here.

Taxes = legalized theft by governments.....
 Author: MYLEGOBRICKS View Messages Posted By MYLEGOBRICKS
 Posted: Aug 6, 2020 20:39
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 91 times
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MYLEGOBRICKS (2683)

Location:  USA, California
Member Since Contact Type Status
Nov 20, 2010 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: CALIFORNIA BRICK STORE
+1
+1
+1
 Author: hpoort View Messages Posted By hpoort
 Posted: Jul 24, 2020 07:09
 Subject: Re: Terms of Service Update for Tax Compliance
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hpoort (404)

Location:  Netherlands, Groningen
Member Since Contact Type Status
Oct 11, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, Shintaku writes:
  In Administrative, popsicle writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

No. You'll not receive less money, the buyer will pay more. BL is brokering
for the respective states in collecting the funds.

There is one thing that I am not very sure about.
Is it legal to pay two times taxes for the same object?
I mean, pick this case.
I buy a LEGO box, so I do pay the taxes on that. And that's fine.
Then I don't want to play with that any more and and I sell that on bricklink
as USED TOY.
So in the US people have to pay AGAIN the taxes for an object which had already
taxes paid?

That is quite unfair on my perspective.

No, if you are VAT registered, in principal you can deduct the tax that you paid
from the tax that you collect your buyers and consequently owe the tax office.

For example you buy a set in a shop for €121: €100 for the goods and €21 tax.
(Assuming the 21% tax percentage and system that applies in the Netherlands;
not sure about Italy). You pay the €21 to the shop owner and he pays this to
the tax office.

You decide to part out the €100 set and manage to sell €150 in parts. You have
to add sales tax over those €150, thus €31,50. Your buyer pays €181,50 to you
and you specify this on the invoice as €150 + €31,50 tax.

When time has come for you to pay VAT, you report that you have sold goods and
owe a €31,50 in tax over these sales. Then you specify that you have already
paid €21,00 in VAT to your supplier and can deduct this from the amount you owe.
Hence you owe only €10,50 in VAT to your tax office - which is exactly the 21%
over the €50 value you have added to the product by whatever you did (parting
out). That is why it is called VAT: Value Added Tax - only the added value
is taxed.

Now, when you export the goods outside of the EU, you don't charge the 21%
over the €150. You are now exporting goods and charge 0%. Bricklink takes care
of this. You receive €150 and don't owe the tax office anything over this
transaction. However, this also breaks the conditions that would allow you to
deduct the €21 tax already paid, so they don't owe you either.

It is fair, but rather complicated, especially since the rules are different
in different economic zones.

If you are not VAT registered and still sell things (which may or may not
be tolerated by your local tax office), you don't specify nor owe sales tax,
neither can you deduct the paid VAT. In this situation you act like a 'hobby
seller' (for tax purposes only; you are still liable as a business by the
remote sales act) and indeed tax will be paid by the buyer twice: once directly
through Bricklink, and the other through your prices.
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Jul 24, 2020 07:42
 Subject: Re: Terms of Service Update for Tax Compliance
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SylvainLS (32)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, hpoort writes:
  […]
Now, when you export the goods outside of the EU, you don't charge the 21%
over the €150. You are now exporting goods and charge 0%. Bricklink takes care
of this. You receive €150 and don't owe the tax office anything over this
transaction. However, this also breaks the conditions that would allow you to
deduct the €21 tax already paid, so they don't owe you either. […]

Er, no, you can still deduct the 21€.
Buying and selling are two different actions.
You can deduct VAT on everything you bought (that included VAT), that you sold
it or not.

As soon as you buy, the VAT you paid is deductible.
As soon as you sell, the VAT you charge is collectible (indeed, you don’t “charge”
VAT, you ”collect” it for the State, you’re a proxy for the tax office).

When you sell outside your VAT-zone (= EU if you’re in EU), you don’t collect
VAT for the State, so you don’t charge it and you don’t owe it to the State. 
That’s all.

What a nightmare that would be if you had to link sales to purchases.
 Author: hpoort View Messages Posted By hpoort
 Posted: Jul 24, 2020 08:15
 Subject: (Cancelled)
 Viewed: 52 times
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hpoort (404)

Location:  Netherlands, Groningen
Member Since Contact Type Status
Oct 11, 2014 Contact Member Buyer
Buying Privileges - OK
(Cancelled)
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Jul 24, 2020 09:09
 Subject: Re: Terms of Service Update for Tax Compliance
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SylvainLS (32)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, hpoort writes:
  […]
Actually you have to, although the method of tracing what you bought for which
purpose may be done through averages instead of linking every single purchase
to every single sale. […]

Okay, I looked into it: in France, it was changed on January 1st 2008.
Prior to that (as was my knowledge ), the deduction was said to be “acquired”
as soon as the purchase was made.  “Acquired” meaning that you got it, you keep
it.
(Unless your sales were “rarely” taxable (for whatever “rarely” might mean),
in which case the deduction was only possible when you sold.)

In 2008, they introduced a coefficient that you need to calculate every year. 
And it’s actually 3 coefficients.

Guh, taxes!
Pourquoi faire simple quand on peut faire compliqué? / Why make it simple when
you can make it complicated?
 Author: hpoort View Messages Posted By hpoort
 Posted: Jul 24, 2020 10:01
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 43 times
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hpoort (404)

Location:  Netherlands, Groningen
Member Since Contact Type Status
Oct 11, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, SylvainLS writes:
  In Administrative, hpoort writes:
  […]
Actually you have to, although the method of tracing what you bought for which
purpose may be done through averages instead of linking every single purchase
to every single sale. […]

Okay, I looked into it: in France, it was changed on January 1st 2008.
Prior to that (as was my knowledge ), the deduction was said to be “acquired”
as soon as the purchase was made.  “Acquired” meaning that you got it, you keep
it.
(Unless your sales were “rarely” taxable (for whatever “rarely” might mean),
in which case the deduction was only possible when you sold.)

In 2008, they introduced a coefficient that you need to calculate every year. 
And it’s actually 3 coefficients.

Guh, taxes!
Pourquoi faire simple quand on peut faire compliqué? / Why make it simple when
you can make it complicated?

I wrote my previous reply when having the complicated rules for partial deductibility
in mind that apply when you have mixed sales that partly are taxed (21% in the
NL) and partly are not (0% as for education and health care) that I had experience
with. I soon realised this may be quite different from the rules surrounding
the 0% band for export. I presume you are correct in that you can still deduct
the paid taxes and may need to calculate several coefficients. Certainement compliqué.
 Author: LordSkylark View Messages Posted By LordSkylark
 Posted: Jul 24, 2020 15:12
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 51 times
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LordSkylark (10664)

Location:  USA, Michigan
Member Since Contact Type Status
May 4, 2003 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: Light of the World
At least in Michigan, you don't have to pay sales tax on items that you are
intending to resell at the time that they are purchased. (You do have to register
for a sales tax licence to do this.) So, in the case where you bought something
not intending it for resell but then later decided to sell it, you would be charged
sales tax when it was purchased and you also need to charge sales tax when it
is sold.


In Administrative, Shintaku writes:
  In Administrative, popsicle writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

No. You'll not receive less money, the buyer will pay more. BL is brokering
for the respective states in collecting the funds.

There is one thing that I am not very sure about.
Is it legal to pay two times taxes for the same object?
I mean, pick this case.
I buy a LEGO box, so I do pay the taxes on that. And that's fine.
Then I don't want to play with that any more and and I sell that on bricklink
as USED TOY.
So in the US people have to pay AGAIN the taxes for an object which had already
taxes paid?

That is quite unfair on my perspective.
 Author: Adjour View Messages Posted By Adjour
 Posted: Jul 24, 2020 16:52
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 45 times
 Topic: Administrative
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Adjour (1017)

Location:  USA, California
Member Since Contact Type Status
Aug 1, 2016 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: The Chili is a Bit Spicy
In Administrative, LordSkylark writes:
  At least in Michigan, you don't have to pay sales tax on items that you are
intending to resell at the time that they are purchased. (You do have to register
for a sales tax licence to do this.) So, in the case where you bought something
not intending it for resell but then later decided to sell it, you would be charged
sales tax when it was purchased and you also need to charge sales tax when it
is sold.


For Californian reading this, we call this a resale certificate.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 03:13
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 190 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.
 Author: ZwarteMagica View Messages Posted By ZwarteMagica
 Posted: Jul 24, 2020 03:20
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 99 times
 Topic: Administrative
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ZwarteMagica (6019)

Location:  Netherlands, Noord-Holland
Member Since Contact Type Status
Apr 14, 2010 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: HappyB
In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

If I sent a package to California how is the buyer going to proof he or she already
payed tax for the goods in the package?
In Europe the postal service is responsable to collect tax for the imported goods
and will act like it.
I am not sure how this system works in the US, but it would be odd the buyer
has to pay tax twice. Once to BrickLink and once to the postal service.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 03:23
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 118 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, ZwarteMagica writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

If I sent a package to California how is the buyer going to proof he or she already
payed tax for the goods in the package?
In Europe the postal service is responsable to collect tax for the imported goods
and will act like it.
I am not sure how this system works in the US, but it would be odd the buyer
has to pay tax twice. Once to BrickLink and once to the postal service.

Orders coming through customs into the United States typically do not require
tax to be paid unless they are of extremely high value. We do not have a national
VAT.
 Author: popsicle View Messages Posted By popsicle
 Posted: Jul 24, 2020 03:27
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 94 times
 Topic: Administrative
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popsicle (5848)

Location:  USA, Washington
Member Since Contact Type Status
Feb 21, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: ConstrucToys
In Administrative, ZwarteMagica writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

If I sent a package to California how is the buyer going to proof he or she already
payed tax for the goods in the package?
In Europe the postal service is responsable to collect tax for the imported goods
and will act like it.
I am not sure how this system works in the US, but it would be odd the buyer
has to pay tax twice. Once to BrickLink and once to the postal service.

Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.
 Author: infinibrix View Messages Posted By infinibrix
 Posted: Jul 24, 2020 05:28
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 70 times
 Topic: Administrative
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infinibrix (2950)

Location:  United Kingdom, England
Member Since Contact Type Status
Jul 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: infinibrix
In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe
 Author: Rob_and_Shelagh View Messages Posted By Rob_and_Shelagh
 Posted: Jul 24, 2020 05:33
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 70 times
 Topic: Administrative
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Rob_and_Shelagh (23447)

Location:  United Kingdom, England
Member Since Contact Type Status
Nov 3, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: YELLOW FARM BRICKS
In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Robet
 Author: infinibrix View Messages Posted By infinibrix
 Posted: Jul 24, 2020 05:58
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 54 times
 Topic: Administrative
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infinibrix (2950)

Location:  United Kingdom, England
Member Since Contact Type Status
Jul 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: infinibrix
In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Robet

Yes but the point I'm making is that it has now become more expensive for
the US buyer not from what the EU seller is charging but from what BL will be
charging/collecting in VAT
 Author: Rob_and_Shelagh View Messages Posted By Rob_and_Shelagh
 Posted: Jul 24, 2020 06:01
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 56 times
 Topic: Administrative
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Rob_and_Shelagh (23447)

Location:  United Kingdom, England
Member Since Contact Type Status
Nov 3, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: YELLOW FARM BRICKS
In Administrative, infinibrix writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Robet

Yes but the point I'm making is that it has now become more expensive for
the US buyer not from what the EU seller is charging but from what BL will be
charging/collecting in VAT

BL is only charging/collecting VAT on their services to you you, ie on their
fees. So that is 25% Danish VAT on 3% fees which eqautes to 0.75% of your margin
so if you somehow decide to pass that on to US customers they will pay more but
will that really make any difference?

Robert
 Author: Stellar View Messages Posted By Stellar
 Posted: Jul 24, 2020 06:11
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 51 times
 Topic: Administrative
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Stellar (1471)

Location:  Spain, Comunidad Valenciana
Member Since Contact Type Status
Sep 24, 2015 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Stellar Bricks
In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Robet

Yes but the point I'm making is that it has now become more expensive for
the US buyer not from what the EU seller is charging but from what BL will be
charging/collecting in VAT

BL is only charging/collecting VAT on their services to you you, ie on their
fees. So that is 25% Danish VAT on 3% fees which eqautes to 0.75% of your margin
so if you somehow decide to pass that on to US customers they will pay more but
will that really make any difference?

Robert

They are going to charge you that, but also the sales tax to US buyers above
the price of your orders too.
 Author: Rob_and_Shelagh View Messages Posted By Rob_and_Shelagh
 Posted: Jul 24, 2020 06:15
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 55 times
 Topic: Administrative
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Rob_and_Shelagh (23447)

Location:  United Kingdom, England
Member Since Contact Type Status
Nov 3, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: YELLOW FARM BRICKS
In Administrative, Stellar writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Robet

Yes but the point I'm making is that it has now become more expensive for
the US buyer not from what the EU seller is charging but from what BL will be
charging/collecting in VAT

BL is only charging/collecting VAT on their services to you you, ie on their
fees. So that is 25% Danish VAT on 3% fees which eqautes to 0.75% of your margin
so if you somehow decide to pass that on to US customers they will pay more but
will that really make any difference?

Robert

They are going to charge you that, but also the sales tax to US buyers above
the price of your orders too.

That is correct but the US buyer would have that local sales tax added if he
purchased from a store in his state, another US state or a store outside of the
USA so it should not affect my competitive position versus other stores right?

Robert
 Author: Stellar View Messages Posted By Stellar
 Posted: Jul 24, 2020 06:21
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 39 times
 Topic: Administrative
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Stellar (1471)

Location:  Spain, Comunidad Valenciana
Member Since Contact Type Status
Sep 24, 2015 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Stellar Bricks
In Administrative, Rob_and_Shelagh writes:
  In Administrative, Stellar writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Robet

Yes but the point I'm making is that it has now become more expensive for
the US buyer not from what the EU seller is charging but from what BL will be
charging/collecting in VAT

BL is only charging/collecting VAT on their services to you you, ie on their
fees. So that is 25% Danish VAT on 3% fees which eqautes to 0.75% of your margin
so if you somehow decide to pass that on to US customers they will pay more but
will that really make any difference?

Robert

They are going to charge you that, but also the sales tax to US buyers above
the price of your orders too.

That is correct but the US buyer would have that local sales tax added if he
purchased from a store in his state, another US state or a store outside of the
USA so it should not affect my competitive position versus other stores right?

Robert

Right Robert,
Seen it that way the buyers from USA are going to pay more for all.
 Author: infinibrix View Messages Posted By infinibrix
 Posted: Jul 24, 2020 06:28
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 56 times
 Topic: Administrative
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infinibrix (2950)

Location:  United Kingdom, England
Member Since Contact Type Status
Jul 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: infinibrix
In Administrative, Rob_and_Shelagh writes:
  In Administrative, Stellar writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Robet

Yes but the point I'm making is that it has now become more expensive for
the US buyer not from what the EU seller is charging but from what BL will be
charging/collecting in VAT

BL is only charging/collecting VAT on their services to you you, ie on their
fees. So that is 25% Danish VAT on 3% fees which eqautes to 0.75% of your margin
so if you somehow decide to pass that on to US customers they will pay more but
will that really make any difference?

Robert

They are going to charge you that, but also the sales tax to US buyers above
the price of your orders too.

That is correct but the US buyer would have that local sales tax added if he
purchased from a store in his state, another US state or a store outside of the
USA so it should not affect my competitive position versus other stores right?

Robert

Ah right yes I see your point I was too entrenched with how it affects EU sellers
to pay much close attention to how it also affects US to US purchases
 Author: yorbrick View Messages Posted By yorbrick
 Posted: Jul 24, 2020 07:08
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 49 times
 Topic: Administrative
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yorbrick (781)

Location:  United Kingdom, England
Member Since Contact Type Status
Apr 11, 2011 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Yorbricks
  BL is only charging/collecting VAT on their services to you you, ie on their
fees. So that is 25% Danish VAT on 3% fees which eqautes to 0.75% of your margin
so if you somehow decide to pass that on to US customers they will pay more but
will that really make any difference?


Is that correct, as it also says that US users (such as in California) must also
pay sales tax on international orders. So presumably BL will add the sales tax
onto the total amount that the US buyer pays. As the total purchase price goes
up and the fee for the whole transaction is the responsibility of the seller,
this will mean the PayPal fees will also go up even though the amount paid to
the seller before paypal fees would have been the same. So the amount the seller
receives will be less for a sale to a California resident than one for the same
purchase to a buyer in a state where the tax is not paid.

So BL are doing more than just charging VAT on their fees for EU (and currently
UK) sellers selling to certain US states. They are collecting US sales tax on
the buyers behalf and so increasing the PayPal fees the EU/UK seller needs to
pay.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 10:15
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 80 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, infinibrix writes:
  In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Robet

Yes but the point I'm making is that it has now become more expensive for
the US buyer not from what the EU seller is charging but from what BL will be
charging/collecting in VAT

Yes, there is no question that the overall cost for the buyer in these specific
states will increase. But just a correction, BrickLink is not charging VAT to
buyers. We are only charging VAT on sellers fees. US sales tax is not a VAT.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 09:59
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 73 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, Rob_and_Shelagh writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

But EU sellers shipping to US buyers should not be charging VAT, that has not
changed.

Correct. US buyers will not have to pay EU VAT, only US state sales tax.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 09:58
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 74 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

The overall cost to the buyer is increased no matter where the order is coming
from, with the exception of cases where the US seller was previously charging
sales tax. But because this was based on a personal threshold, and not many (relatively)
US sellers were collecting tax.
 Author: popsicle View Messages Posted By popsicle
 Posted: Jul 24, 2020 10:53
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 74 times
 Topic: Administrative
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popsicle (5848)

Location:  USA, Washington
Member Since Contact Type Status
Feb 21, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: ConstrucToys
In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

The concern is valid, but misplaced. Buyers within the listed states (number
states listed to grow) will be paying an additional amount from all sellers
on the site, not just European.

BL will be collecting the correct amount (calculated by percentage which varies
by state) at the time of the sale. Just as a brick'n mortar store where the
buyer lives would, that is collecting on behalf of the state board of equalization
of California (using one example.)

Buyers within the given states know/expect or will quickly learn, that with every
purchase an additional percentage will be added to their invoice here on BL,
just as it is on most other sites of today.

-popsicle
 Author: DanialR View Messages Posted By DanialR
 Posted: Jul 24, 2020 20:01
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 38 times
 Topic: Administrative
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DanialR (15)

Location:  USA, Washington
Member Since Contact Type Status
Dec 10, 2019 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: Robbins' Roost
In Administrative, popsicle writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

The concern is valid, but misplaced. Buyers within the listed states (number
states listed to grow) will be paying an additional amount from all sellers
on the site, not just European.

BL will be collecting the correct amount (calculated by percentage which varies
by state) at the time of the sale. Just as a brick'n mortar store where the
buyer lives would, that is collecting on behalf of the state board of equalization
of California (using one example.)

Buyers within the given states know/expect or will quickly learn, that with every
purchase an additional percentage will be added to their invoice here on BL,
just as it is on most other sites of today.

-popsicle

You're right. As soon as I started reading this info the Washington State
Sales Tax (6.5%) mentality kicked in. My 1st thought, what was I thinking of
buying in the next few months? Should I buy it now before I have to pay sales
tax?

Will it stop me from buying on Bricklink? NO, the Brick&Mortar stores in the
area selling 2nd hand Lego are already charging me a higher sales tax, 9.9-10.1%.
Plus they are passing on the costs for their retail store front in higher prices.
It will still be less expensive and more convenient to shop on Bricklink.

Why the 6.5% versus 9.9-10.1%? In Washington State there is a State Tax rate
of 6.5%, local governments can add on their own Local Sales Tax but only for
businesses that reside within their boundaries. Out of State and International
sales are only subject to the State Sales Tax rate.

To make it even more complex, if someone buys from Popsicle and they happen to
live in the same City, technically the buyer will have to pay the 9.9-10.1% Sales
Tax. Does it happen, usually not but expect it to change. In Washington state
too many people have played games with the, "I'm from out of state and shouldn't
have to pay sales tax" exemption. Now you have pay the sales tax then file with
the state for a refund. Also in the tax code for Washington State, if I trade
something of value (goods or services) and no money changes hands it is still
considered a sale and taxes should be paid on the going market rate of the goods
or services exchanged.

The good news for those worried about having to do onsite payments . . . Wayfair,
Amazon, eBay, and others have already laid all of the ground work for Bricklink.
They will figure out the correct taxes to charge and make the payments to the
correct taxing authorities for you. You won't have to spend hours figuring
out the tax rates on each order, sending in the taxes, and filing paperwork weekly/monthly/quarterly/yearly
to the taxing authorities. I'm sure one of the members with a Brick&Mortar
storefront can give you an idea of the time it takes and what happens if you
get audited for your Sales Taxes.

As a Buyer, I'm glad Bricklink's going to take care of it for you. Then
I don't have to worry about someone accidentally miscalculating the taxes.

As a Seller, it becomes easier to handle the questions. Everybody selling on
Bricklink has the same 'surcharges'. I've seen currently some Seller's
won't sell to in-state residents. I wouldn't be surprised if it is because
of the sales tax issues. If it's handled for them by Bricklink, they might
sell to in-state residents.

Finally, this is not a result of Lego buying Bricklink. Bricklink was already
on the radar of some states in the US a year ago. It would have happened whether
it was acquired by Lego or not as a result of the 2018 US Supreme Court, South
Dakota vs Wayfair decision that says "a marketplace operator has to collect and
remit online sales tax on behalf of sellers". Instead be glad Lego is involved,
they've already dealt with some of the issues and I'm sure will be helping
Bricklink through the process.

They say there are two things you can't avoid in life; death and taxes.
 Author: popsicle View Messages Posted By popsicle
 Posted: Jul 24, 2020 20:25
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 49 times
 Topic: Administrative
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popsicle (5848)

Location:  USA, Washington
Member Since Contact Type Status
Feb 21, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: ConstrucToys
In Administrative, DanialR writes:
  In Administrative, popsicle writes:
  In Administrative, infinibrix writes:
  In Administrative, popsicle writes:

  Don't worry about it. Sales tax is handled unlike your duties, import or
VAT of the EU

We still have an extremely high threshold for importing goods.

Russell (or BrickLink Team ) should expand on their announcement. It WILL NOT
affect you sellers dealing with US buyers. The onus of duty falls upon the buyer
in the respective states, via BL brokering the tax collection.

Yes but I think the only concern for some sellers will be that their goods may
not be so appealing to buy what with it now costing more for a US customer to
buy from Europe

The concern is valid, but misplaced. Buyers within the listed states (number
states listed to grow) will be paying an additional amount from all sellers
on the site, not just European.

BL will be collecting the correct amount (calculated by percentage which varies
by state) at the time of the sale. Just as a brick'n mortar store where the
buyer lives would, that is collecting on behalf of the state board of equalization
of California (using one example.)

Buyers within the given states know/expect or will quickly learn, that with every
purchase an additional percentage will be added to their invoice here on BL,
just as it is on most other sites of today.

-popsicle

You're right. As soon as I started reading this info the Washington State
Sales Tax (6.5%) mentality kicked in. My 1st thought, what was I thinking of
buying in the next few months? Should I buy it now before I have to pay sales
tax?

Will it stop me from buying on Bricklink? NO, the Brick&Mortar stores in the
area selling 2nd hand Lego are already charging me a higher sales tax, 9.9-10.1%.
Plus they are passing on the costs for their retail store front in higher prices.
It will still be less expensive and more convenient to shop on Bricklink.

Why the 6.5% versus 9.9-10.1%? In Washington State there is a State Tax rate
of 6.5%, local governments can add on their own Local Sales Tax but only for
businesses that reside within their boundaries. Out of State and International
sales are only subject to the State Sales Tax rate.

To make it even more complex, if someone buys from Popsicle and they happen to
live in the same City, technically the buyer will have to pay the 9.9-10.1% Sales
Tax. Does it happen, usually not but expect it to change. In Washington state
too many people have played games with the, "I'm from out of state and shouldn't
have to pay sales tax" exemption. Now you have pay the sales tax then file with
the state for a refund. Also in the tax code for Washington State, if I trade
something of value (goods or services) and no money changes hands it is still
considered a sale and taxes should be paid on the going market rate of the goods
or services exchanged.

The good news for those worried about having to do onsite payments . . . Wayfair,
Amazon, eBay, and others have already laid all of the ground work for Bricklink.
They will figure out the correct taxes to charge and make the payments to the
correct taxing authorities for you. You won't have to spend hours figuring
out the tax rates on each order, sending in the taxes, and filing paperwork weekly/monthly/quarterly/yearly
to the taxing authorities. I'm sure one of the members with a Brick&Mortar
storefront can give you an idea of the time it takes and what happens if you
get audited for your Sales Taxes.

As a Buyer, I'm glad Bricklink's going to take care of it for you. Then
I don't have to worry about someone accidentally miscalculating the taxes.

As a Seller, it becomes easier to handle the questions. Everybody selling on
Bricklink has the same 'surcharges'. I've seen currently some Seller's
won't sell to in-state residents. I wouldn't be surprised if it is because
of the sales tax issues. If it's handled for them by Bricklink, they might
sell to in-state residents.

Finally, this is not a result of Lego buying Bricklink. Bricklink was already
on the radar of some states in the US a year ago. It would have happened whether
it was acquired by Lego or not as a result of the 2018 US Supreme Court, South
Dakota vs Wayfair decision that says "a marketplace operator has to collect and
remit online sales tax on behalf of sellers". Instead be glad Lego is involved,
they've already dealt with some of the issues and I'm sure will be helping
Bricklink through the process.

They say there are two things you can't avoid in life; death and taxes.

Some of the most interesting and salient information on the topic, so far.

Good read!

-Thanks
 Author: yorbrick View Messages Posted By yorbrick
 Posted: Jul 24, 2020 04:25
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 78 times
 Topic: Administrative
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yorbrick (781)

Location:  United Kingdom, England
Member Since Contact Type Status
Apr 11, 2011 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Yorbricks
In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

Can you confirm how payments will be made under this system, especially via PayPal
and their fees.

When the buyer pays, two payments need to be made - one to the seller and one
to BL. Do these both get charged the PayPal fixed fee and the percentage fee,
or does the seller get charged the fixed fee plus the percentage and BL only
the percentage, or is the fixed fee shared, or does the seller pay fees on the
total including the tax? Similarly does the tax amount affect micropayments,
if the total is over the threshold but the before tax value is below?
 Author: Stellar View Messages Posted By Stellar
 Posted: Jul 24, 2020 05:47
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 38 times
 Topic: Administrative
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Stellar (1471)

Location:  Spain, Comunidad Valenciana
Member Since Contact Type Status
Sep 24, 2015 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Stellar Bricks
In Administrative, yorbrick writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

Can you confirm how payments will be made under this system, especially via PayPal
and their fees.

When the buyer pays, two payments need to be made - one to the seller and one
to BL. Do these both get charged the PayPal fixed fee and the percentage fee,
or does the seller get charged the fixed fee plus the percentage and BL only
the percentage, or is the fixed fee shared, or does the seller pay fees on the
total including the tax? Similarly does the tax amount affect micropayments,
if the total is over the threshold but the before tax value is below?

10. Does the seller have to pay PayPal / Stripe fees on the entire payment
amount, or just on the amount they receive?

Even though BrickLink is receiving part of the payment, the fee for the whole
transaction will be the responsibility of the seller. We feel this is balanced
out by BrickLink paying for the service of calculating the tax.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 09:50
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 79 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, yorbrick writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

Can you confirm how payments will be made under this system, especially via PayPal
and their fees.

When the buyer pays, two payments need to be made - one to the seller and one
to BL. Do these both get charged the PayPal fixed fee and the percentage fee,
or does the seller get charged the fixed fee plus the percentage and BL only
the percentage, or is the fixed fee shared, or does the seller pay fees on the
total including the tax? Similarly does the tax amount affect micropayments,
if the total is over the threshold but the before tax value is below?

One payment will be made per BrickLink order. The payment will be split in two
- the part paying for the goods, shipping, additional fees, etc will go to the
seller. The tax portion of the payment will be sent to BrickLink.

As is mentioned in the FAQ, the seller will pay the PayPal fees on the whole
transaction. BrickLink will pay for the service to calculate the tax.
 Author: Gmid View Messages Posted By Gmid
 Posted: Jul 24, 2020 10:09
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 49 times
 Topic: Administrative
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Gmid (741)

Location:  USA, Arkansas
Member Since Contact Type Status
Dec 30, 2015 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: 3001Bricks
In Administrative, Admin_Russell writes:
  In Administrative, yorbrick writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

Can you confirm how payments will be made under this system, especially via PayPal
and their fees.

When the buyer pays, two payments need to be made - one to the seller and one
to BL. Do these both get charged the PayPal fixed fee and the percentage fee,
or does the seller get charged the fixed fee plus the percentage and BL only
the percentage, or is the fixed fee shared, or does the seller pay fees on the
total including the tax? Similarly does the tax amount affect micropayments,
if the total is over the threshold but the before tax value is below?

One payment will be made per BrickLink order. The payment will be split in two
- the part paying for the goods, shipping, additional fees, etc will go to the
seller. The tax portion of the payment will be sent to BrickLink.

As is mentioned in the FAQ, the seller will pay the PayPal fees on the whole
transaction. BrickLink will pay for the service to calculate the tax.

So this will work exactly the same was as eBay?

To be honest, I'm perfectly fine with paying paypal taxes over the sales
tax, as if I were to do everything by the letter of the law in every state, it
would be a lot more expensive for me. setting up a nexus, administrative burden,
min fees, etc.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 12:43
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 74 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, Gmid writes:

  
  As is mentioned in the FAQ, the seller will pay the PayPal fees on the whole
transaction. BrickLink will pay for the service to calculate the tax.

So this will work exactly the same was as eBay?

To be honest, I'm perfectly fine with paying paypal taxes over the sales
tax, as if I were to do everything by the letter of the law in every state, it
would be a lot more expensive for me. setting up a nexus, administrative burden,
min fees, etc.

eBay is a working model we have looked at, but there may be some differences.
But you are correct that these changes on BrickLink are actually a very good
deal for sellers who would otherwise have to navigate the tax landscape on their
own. It just makes sense for BrickLink to handle this instead.
 Author: infinibrix View Messages Posted By infinibrix
 Posted: Jul 24, 2020 05:53
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 58 times
 Topic: Administrative
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infinibrix (2950)

Location:  United Kingdom, England
Member Since Contact Type Status
Jul 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: infinibrix
In Administrative, Admin_Russell writes:
  
  
The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

So can I just ask whether this will alter how a US Seller sees pricing in the
search results? For instance if I list an item for £10 will it instead display
as £12 (or whatever) when a US seller views it or will it still display as £10
for the US seller with the VAT amount only being added at checkout?
 Author: Rob_and_Shelagh View Messages Posted By Rob_and_Shelagh
 Posted: Jul 24, 2020 05:58
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 49 times
 Topic: Administrative
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Rob_and_Shelagh (23447)

Location:  United Kingdom, England
Member Since Contact Type Status
Nov 3, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: YELLOW FARM BRICKS
In Administrative, infinibrix writes:
  In Administrative, Admin_Russell writes:
  
  
The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

So can I just ask whether this will alter how a US Seller sees pricing in the
search results? For instance if I list an item for £10 will it instead display
as £12 (or whatever) when a US seller views it or will it still display as £10
for the US seller with the VAT amount only being added at checkout?

£10

no VAT should be added at checkout.

no change in this respect ... or am I missing something else

Robert
 Author: Stellar View Messages Posted By Stellar
 Posted: Jul 24, 2020 06:03
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 43 times
 Topic: Administrative
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Stellar (1471)

Location:  Spain, Comunidad Valenciana
Member Since Contact Type Status
Sep 24, 2015 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Stellar Bricks
In Administrative, infinibrix writes:
  In Administrative, Admin_Russell writes:
  
  
The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

So can I just ask whether this will alter how a US Seller sees pricing in the
search results? For instance if I list an item for £10 will it instead display
as £12 (or whatever) when a US seller views it or will it still display as £10
for the US seller with the VAT amount only being added at checkout?

Interesting question, as far as I know in the physical stores they display the
amount without VAT and when you are going to pay the tax is added. Then it should
work the same here...?
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 10:13
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 61 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, infinibrix writes:
  In Administrative, Admin_Russell writes:
  
  
The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

So can I just ask whether this will alter how a US Seller sees pricing in the
search results? For instance if I list an item for £10 will it instead display
as £12 (or whatever) when a US seller views it or will it still display as £10
for the US seller with the VAT amount only being added at checkout?

US sales tax will not be reflected in the price guide the same way as EU VAT.
US sales tax is typically added on top of the price of the goods, and this is
the way it is being set up on BrickLink as well.
 Author: mach1baby View Messages Posted By mach1baby
 Posted: Jul 24, 2020 10:35
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 42 times
 Topic: Administrative
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mach1baby (6342)

Location:  USA, Washington
Member Since Contact Type Status
Mar 26, 2011 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Everything StarWars & More
In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

So what are these added states in August? For instance, I am a brick and mortar
store in WA state and if is one of those added states, I am required to collect
sales tax on all in state customers, so deleting that feature we currently use
on Bricklink is how we collect and report.

Scott
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 13:55
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 71 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, mach1baby writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Shintaku writes:
  
  1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

So, correct me if I am wrong, when I will receive an order from the US (Connecticut
and California at the beginning, all the States in the end) I will receive less
money because part are taxes. Is there any way to include those taxes in the
invoice automatically generated by instant checkout, so that I get the correct
amount, or do I have to calculate them in the shipping method page?
This is unclear.

The amount of tax will not be deducted from your prices. It will be added on
top of that and the whole amount will be charged to the buyer. When the transaction
takes place, payment for the goods, shipping, etc, will be sent to the seller
and at the same time, payment for the tax will be sent to BrickLink.

The amount of tax will be clearly displayed for buyers to see before placing
their order. This amount will also appear on the order detail page and other
places, such as the invoice.

So what are these added states in August? For instance, I am a brick and mortar
store in WA state and if is one of those added states, I am required to collect
sales tax on all in state customers, so deleting that feature we currently use
on Bricklink is how we collect and report.

Scott

No states will be added in August. The August date is because we needed to update
Terms and start charging VAT to on EU seller fees.

The US sales tax is scheduled to start in Connecticut and California around the
end of September / beginning of October. But depending on how the registration
process goes with other states, there may be some other states added to the "live"
list at that time or shortly thereafter.

We will keep you posted.
 Author: ZwarteMagica View Messages Posted By ZwarteMagica
 Posted: Jul 24, 2020 03:14
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 123 times
 Topic: Administrative
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ZwarteMagica (6019)

Location:  Netherlands, Noord-Holland
Member Since Contact Type Status
Apr 14, 2010 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: HappyB
Does that mean BrickLink Limited to LEGO BrickLink, Inc. will also register at
a EU (dutch) Chamber of commerce?

If so please communicate your EU (Dutch) Chamber of Commerce number and your
VAT ID on your invoice. Also specify on the invoice which part is Bricklink-fees
and which part is VAT and everything is fine by me.

Dutch law (and I think it is an EU law) obligate you to communicate to your customers
your an EU Business including Chamber of commerce ID and VAT-ID.

Thank you for letting us know in advance.
Kind regards,
Marcel


In Administrative, Admin_Russell writes:
  Dear BrickLink member,

Over the next few weeks, BrickLink will undergo some changes that will affect
our membership. These changes are necessary for our platform to be compliant
with sales and use tax and VAT legislation where applicable. We also feel they
will help build our reputation as a well-regarded ecommerce site. These changes
are broken down into three categories outlined below:

1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.

3) We will soon present you with a revised Terms of Service. You will have about
a week to read the new terms before the terms go into effect on Aug 4, 2020.
The major changes are related to the charging and collecting of taxes and the
change of company from BrickLink Limited to LEGO BrickLink, Inc.

For further information about these changes, please visit this FAQ page:

https://www.bricklink.com/help.asp?helpID=2501

If you have questions, please reply to this post or send a message to customersupport@bricklink.com


The BrickLink Team
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 03:28
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 131 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, ZwarteMagica writes:
  Does that mean BrickLink Limited to LEGO BrickLink, Inc. will also register at
a EU (dutch) Chamber of commerce?

If so please communicate your EU (Dutch) Chamber of Commerce number and your
VAT ID on your invoice. Also specify on the invoice which part is Bricklink-fees
and which part is VAT and everything is fine by me.

Dutch law (and I think it is an EU law) obligate you to communicate to your customers
your an EU Business including Chamber of commerce ID and VAT-ID.

Thank you for letting us know in advance.
Kind regards,
Marcel


Hi Marcel,

We are currently registered in Denmark for the EU, and I believe that our identification
numbers will come from there. All invoices will clearly state what part is VAT
and what part is the original fee.

We have a team of specialists in Europe who are guiding us through this process,
and we have every reason to believe that as a result we will comply with all
government requirements.
 Author: Teup View Messages Posted By Teup
 Posted: Jul 24, 2020 04:55
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 69 times
 Topic: Administrative
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Teup (4697)

Location:  Netherlands, Utrecht
Member Since Contact Type Status
May 6, 2004 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: T-workshop / BLOKJESKONING
In Administrative, Admin_Russell writes:
  In Administrative, ZwarteMagica writes:
  Does that mean BrickLink Limited to LEGO BrickLink, Inc. will also register at
a EU (dutch) Chamber of commerce?

If so please communicate your EU (Dutch) Chamber of Commerce number and your
VAT ID on your invoice. Also specify on the invoice which part is Bricklink-fees
and which part is VAT and everything is fine by me.

Dutch law (and I think it is an EU law) obligate you to communicate to your customers
your an EU Business including Chamber of commerce ID and VAT-ID.

Thank you for letting us know in advance.
Kind regards,
Marcel


Hi Marcel,

We are currently registered in Denmark for the EU, and I believe that our identification
numbers will come from there. All invoices will clearly state what part is VAT
and what part is the original fee.

We have a team of specialists in Europe who are guiding us through this process,
and we have every reason to believe that as a result we will comply with all
government requirements.

So VAT registered sellers will receive 0% VAT invoices, right?
 Author: Teup View Messages Posted By Teup
 Posted: Jul 24, 2020 05:40
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 62 times
 Topic: Administrative
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Teup (4697)

Location:  Netherlands, Utrecht
Member Since Contact Type Status
May 6, 2004 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: T-workshop / BLOKJESKONING
In Administrative, Teup writes:
  In Administrative, Admin_Russell writes:
  In Administrative, ZwarteMagica writes:
  Does that mean BrickLink Limited to LEGO BrickLink, Inc. will also register at
a EU (dutch) Chamber of commerce?

If so please communicate your EU (Dutch) Chamber of Commerce number and your
VAT ID on your invoice. Also specify on the invoice which part is Bricklink-fees
and which part is VAT and everything is fine by me.

Dutch law (and I think it is an EU law) obligate you to communicate to your customers
your an EU Business including Chamber of commerce ID and VAT-ID.

Thank you for letting us know in advance.
Kind regards,
Marcel


Hi Marcel,

We are currently registered in Denmark for the EU, and I believe that our identification
numbers will come from there. All invoices will clearly state what part is VAT
and what part is the original fee.

We have a team of specialists in Europe who are guiding us through this process,
and we have every reason to believe that as a result we will comply with all
government requirements.

So VAT registered sellers will receive 0% VAT invoices, right?


Or will it just remain business as usual? I think there's a difference
between intra-community services and just plain business costs. The former I
need to add the VAT to and then substract it again in my VAT reports each quarter,
the latter I put as business costs in my annual report. I'm not an expert
so maybe other members can advise too. This all seems a bit complicated.. but
once I get it, I guess everything will be fine.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 09:55
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 79 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, Teup writes:

  
  So VAT registered sellers will receive 0% VAT invoices, right?


  Or will it just remain business as usual? I think there's a difference
between intra-community services and just plain business costs. The former I
need to add the VAT to and then substract it again in my VAT reports each quarter,
the latter I put as business costs in my annual report. I'm not an expert
so maybe other members can advise too. This all seems a bit complicated.. but
once I get it, I guess everything will be fine.

If you are VAT-enabled on BrickLink, you will not be charged VAT on your invoice.
So practically speaking, there is no change for VAT-enabled sellers. I can't
give you advice on how the self accounting for VAT needs to be done, however.
 Author: hpoort View Messages Posted By hpoort
 Posted: Jul 24, 2020 10:06
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 50 times
 Topic: Administrative
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hpoort (404)

Location:  Netherlands, Groningen
Member Since Contact Type Status
Oct 11, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, Admin_Russell writes:
  In Administrative, Teup writes:

  
  So VAT registered sellers will receive 0% VAT invoices, right?


  Or will it just remain business as usual? I think there's a difference
between intra-community services and just plain business costs. The former I
need to add the VAT to and then substract it again in my VAT reports each quarter,
the latter I put as business costs in my annual report. I'm not an expert
so maybe other members can advise too. This all seems a bit complicated.. but
once I get it, I guess everything will be fine.

If you are VAT-enabled on BrickLink, you will not be charged VAT on your invoice.
So practically speaking, there is no change for VAT-enabled sellers. I can't
give you advice on how the self accounting for VAT needs to be done, however.

Nothing needs to be done. If VAT was charged, it could have been deductible.
If no VAT is charged ('exempt for VAT-registered B2B', nothing can be
deducted and nothing has to be done on the client side (=BL Seller).
 Author: Teup View Messages Posted By Teup
 Posted: Jul 24, 2020 10:19
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 55 times
 Topic: Administrative
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Teup (4697)

Location:  Netherlands, Utrecht
Member Since Contact Type Status
May 6, 2004 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: T-workshop / BLOKJESKONING
In Administrative, hpoort writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Teup writes:

  
  So VAT registered sellers will receive 0% VAT invoices, right?


  Or will it just remain business as usual? I think there's a difference
between intra-community services and just plain business costs. The former I
need to add the VAT to and then substract it again in my VAT reports each quarter,
the latter I put as business costs in my annual report. I'm not an expert
so maybe other members can advise too. This all seems a bit complicated.. but
once I get it, I guess everything will be fine.

If you are VAT-enabled on BrickLink, you will not be charged VAT on your invoice.
So practically speaking, there is no change for VAT-enabled sellers. I can't
give you advice on how the self accounting for VAT needs to be done, however.

Nothing needs to be done. If VAT was charged, it could have been deductible.
If no VAT is charged ('exempt for VAT-registered B2B', nothing can be
deducted and nothing has to be done on the client side (=BL Seller).

OK, but we need to know whether it is an intra-community 0% transaction, or whether
it's just a transaction without any VAT (such as paying PayPal fees), right?

In the latter case, everything is the same. But in the former, it means that
Bricklink tells the Danish tax agency that we have done a 0% VAT intra-community
transaction. In order to check whether this is valid, tax agencies may/will match
records and check if it is consistent.

So what I need to know is, does Bricklink report the fee payment transaction
to the Danish tax authority (saying this guy with this VAT number paid this amount),
or not? Then I can match that on my side.

I'm not an expert but to the best of my knowledge that is how it works, but
otherwise please correct me.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 12:54
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 78 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, Teup writes:
  In Administrative, hpoort writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Teup writes:

  
  So VAT registered sellers will receive 0% VAT invoices, right?


  Or will it just remain business as usual? I think there's a difference
between intra-community services and just plain business costs. The former I
need to add the VAT to and then substract it again in my VAT reports each quarter,
the latter I put as business costs in my annual report. I'm not an expert
so maybe other members can advise too. This all seems a bit complicated.. but
once I get it, I guess everything will be fine.

If you are VAT-enabled on BrickLink, you will not be charged VAT on your invoice.
So practically speaking, there is no change for VAT-enabled sellers. I can't
give you advice on how the self accounting for VAT needs to be done, however.

Nothing needs to be done. If VAT was charged, it could have been deductible.
If no VAT is charged ('exempt for VAT-registered B2B', nothing can be
deducted and nothing has to be done on the client side (=BL Seller).

OK, but we need to know whether it is an intra-community 0% transaction, or whether
it's just a transaction without any VAT (such as paying PayPal fees), right?

In the latter case, everything is the same. But in the former, it means that
Bricklink tells the Danish tax agency that we have done a 0% VAT intra-community
transaction. In order to check whether this is valid, tax agencies may/will match
records and check if it is consistent.

So what I need to know is, does Bricklink report the fee payment transaction
to the Danish tax authority (saying this guy with this VAT number paid this amount),
or not? Then I can match that on my side.

I'm not sure at this point how much info will be passed along. For sure the
amount and which country the seller is in. Beyond that, I'll have to ask.
 Author: Teup View Messages Posted By Teup
 Posted: Jul 30, 2020 12:38
 Subject: (Cancelled)
 Viewed: 18 times
 Topic: Administrative
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Teup (4697)

Location:  Netherlands, Utrecht
Member Since Contact Type Status
May 6, 2004 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: T-workshop / BLOKJESKONING
(Cancelled)
 Author: Teup View Messages Posted By Teup
 Posted: Jul 30, 2020 12:39
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 52 times
 Topic: Administrative
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Teup (4697)

Location:  Netherlands, Utrecht
Member Since Contact Type Status
May 6, 2004 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: T-workshop / BLOKJESKONING
In Administrative, Admin_Russell writes:
  In Administrative, Teup writes:
  In Administrative, hpoort writes:
  In Administrative, Admin_Russell writes:
  In Administrative, Teup writes:

  
  So VAT registered sellers will receive 0% VAT invoices, right?


  Or will it just remain business as usual? I think there's a difference
between intra-community services and just plain business costs. The former I
need to add the VAT to and then substract it again in my VAT reports each quarter,
the latter I put as business costs in my annual report. I'm not an expert
so maybe other members can advise too. This all seems a bit complicated.. but
once I get it, I guess everything will be fine.

If you are VAT-enabled on BrickLink, you will not be charged VAT on your invoice.
So practically speaking, there is no change for VAT-enabled sellers. I can't
give you advice on how the self accounting for VAT needs to be done, however.

Nothing needs to be done. If VAT was charged, it could have been deductible.
If no VAT is charged ('exempt for VAT-registered B2B', nothing can be
deducted and nothing has to be done on the client side (=BL Seller).

OK, but we need to know whether it is an intra-community 0% transaction, or whether
it's just a transaction without any VAT (such as paying PayPal fees), right?

In the latter case, everything is the same. But in the former, it means that
Bricklink tells the Danish tax agency that we have done a 0% VAT intra-community
transaction. In order to check whether this is valid, tax agencies may/will match
records and check if it is consistent.

So what I need to know is, does Bricklink report the fee payment transaction
to the Danish tax authority (saying this guy with this VAT number paid this amount),
or not? Then I can match that on my side.

I'm not sure at this point how much info will be passed along. For sure the
amount and which country the seller is in. Beyond that, I'll have to ask.

If you are going to issue 0% VAT, then we need to get legally valid invoices
that include Bricklink's VAT ID.

So, Bricklink tells the Danish tax authorities they've done a 0% VAT transaction
with me and my VAT ID, and I tell the Dutch tax authorities I've done a 0%
VAT transaction with Bricklink and Bricklink's VAT ID. Then our records match
and the transaction is legitimate. That's the way to do 0% VAT transactions.
 Author: Rob_and_Shelagh View Messages Posted By Rob_and_Shelagh
 Posted: Jul 24, 2020 04:37
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 124 times
 Topic: Administrative
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Rob_and_Shelagh (23447)

Location:  United Kingdom, England
Member Since Contact Type Status
Nov 3, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: YELLOW FARM BRICKS
In Administrative, Admin_Russell writes:
  Dear BrickLink member,

Over the next few weeks, BrickLink will undergo some changes that will affect
our membership. These changes are necessary for our platform to be compliant
with sales and use tax and VAT legislation where applicable. We also feel they
will help build our reputation as a well-regarded ecommerce site. These changes
are broken down into three categories outlined below:

1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


As a UK non-VAT registered business, that would be the same for us as when we
buy any supplies or services from any VAT registered company, we pay and absorb
the VAT. So are you registering Bricklink as an EU based supplier with a VAT
number? I guess you must to be able to charge the VAT and pay into the system,
if so which EU state and does this mean the rate of VAT currently charged by
that country (as VAT rates vary by country in Europe).

Thanks,
Robert
 Author: misbi View Messages Posted By misbi
 Posted: Jul 24, 2020 04:48
 Subject: (Cancelled)
 Viewed: 42 times
 Topic: Administrative
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misbi (7155)

Location:  United Kingdom, Scotland
Member Since Contact Type Status Collage
Nov 25, 2001 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
View Collage Pic
Store: Brickshop UK
(Cancelled)
 Author: misbi View Messages Posted By misbi
 Posted: Jul 24, 2020 04:50
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 54 times
 Topic: Administrative
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misbi (7155)

Location:  United Kingdom, Scotland
Member Since Contact Type Status Collage
Nov 25, 2001 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
View Collage Pic
Store: Brickshop UK
In Administrative, Rob_and_Shelagh writes:

  As a UK non-VAT registered business, that would be the same for us as when we
buy any supplies or services from any VAT registered company, we pay and absorb
the VAT. So are you registering Bricklink as an EU based supplier with a VAT
number? I guess you must to be able to charge the VAT and pay into the system,
if so which EU state and does this mean the rate of VAT currently charged by
that country (as VAT rates vary by country in Europe).

Thanks,
Robert

The VAT rate used will be the VAT rate of the country associated with the seller’s
account.
The VAT will be paid to Danish tax authorities. From the FAQ 😉
 Author: Rob_and_Shelagh View Messages Posted By Rob_and_Shelagh
 Posted: Jul 24, 2020 04:57
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 59 times
 Topic: Administrative
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Rob_and_Shelagh (23447)

Location:  United Kingdom, England
Member Since Contact Type Status
Nov 3, 2005 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: YELLOW FARM BRICKS
In Administrative, misbi writes:
  In Administrative, Rob_and_Shelagh writes:

  As a UK non-VAT registered business, that would be the same for us as when we
buy any supplies or services from any VAT registered company, we pay and absorb
the VAT. So are you registering Bricklink as an EU based supplier with a VAT
number? I guess you must to be able to charge the VAT and pay into the system,
if so which EU state and does this mean the rate of VAT currently charged by
that country (as VAT rates vary by country in Europe).

Thanks,
Robert

The VAT rate used will be the VAT rate of the country associated with the seller’s
account.
The VAT will be paid to Danish tax authorities. From the FAQ 😉

Thanks, I missed that, makes sense. Answers my question perfectly you should
be an Admin .
As per your other response this might be short lived for UK then.

Robert
 Author: misbi View Messages Posted By misbi
 Posted: Jul 24, 2020 05:02
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 54 times
 Topic: Administrative
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misbi (7155)

Location:  United Kingdom, Scotland
Member Since Contact Type Status Collage
Nov 25, 2001 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
View Collage Pic
Store: Brickshop UK
In Administrative, Rob_and_Shelagh writes:

  Thanks, I missed that, makes sense. Answers my question perfectly you should
be an Admin .

Yeah - that's not on my bucket list 😂
 Author: BasKrie View Messages Posted By BasKrie
 Posted: Jul 24, 2020 05:25
 Subject: Re: Terms of Service Update for Tax Compliance
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 Topic: Administrative
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BasKrie (4746)

Location:  Netherlands, Drenthe
Member Since Contact Type Status
Dec 5, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: BasKrie
In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 09:55
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 75 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.
 Author: BasKrie View Messages Posted By BasKrie
 Posted: Jul 24, 2020 11:13
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 59 times
 Topic: Administrative
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BasKrie (4746)

Location:  Netherlands, Drenthe
Member Since Contact Type Status
Dec 5, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: BasKrie
In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.

That means that the changes are already in effect since July 1st, that seems
a bit strange doesn't it?
I don't think that this can be correct. For non VAT sellers this means that
the BL fees are 21% higher (for Dutch sellers), knowing that upfront ain't
nice, but having this after the fact is not done.

Please consult the legal department about this. Maybe also check if the changes
aren't coming to soon. As far as I know these kind of changes need to be
at least 14 days (maybe even 30) before the changes are implemented.
 Author: infinibrix View Messages Posted By infinibrix
 Posted: Jul 24, 2020 11:41
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 48 times
 Topic: Administrative
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infinibrix (2950)

Location:  United Kingdom, England
Member Since Contact Type Status
Jul 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: infinibrix
In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.

That means that the changes are already in effect since July 1st, that seems
a bit strange doesn't it?
I don't think that this can be correct. For non VAT sellers this means that
the BL fees are 21% higher (for Dutch sellers), knowing that upfront ain't
nice, but having this after the fact is not done.

Please consult the legal department about this. Maybe also check if the changes
aren't coming to soon. As far as I know these kind of changes need to be
at least 14 days (maybe even 30) before the changes are implemented.

Well yes it probably would have seemed fairer to of started after the announcement
from the Month of August but either which way you have to remember that you would
only be charged those extra amounts on your sales to the US and so you will not
be paying that extra amount accross all your BL fees. I assume most of your sales
are currently generated from within Denamrk and the EU?
 Author: infinibrix View Messages Posted By infinibrix
 Posted: Jul 24, 2020 11:45
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 44 times
 Topic: Administrative
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infinibrix (2950)

Location:  United Kingdom, England
Member Since Contact Type Status
Jul 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: infinibrix
In Administrative, infinibrix writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.

That means that the changes are already in effect since July 1st, that seems
a bit strange doesn't it?
I don't think that this can be correct. For non VAT sellers this means that
the BL fees are 21% higher (for Dutch sellers), knowing that upfront ain't
nice, but having this after the fact is not done.

Please consult the legal department about this. Maybe also check if the changes
aren't coming to soon. As far as I know these kind of changes need to be
at least 14 days (maybe even 30) before the changes are implemented.

Well yes it probably would have seemed fairer to of started after the announcement
from the Month of August but either which way you have to remember that you would
only be charged those extra amounts on your sales to the US and so you will not
be paying that extra amount accross all your BL fees. I assume most of your sales
are currently generated from within Denamrk and the EU?

Sorry you are Dutch so meant to say Netherlands not Denmark... I've been
reading too many posts from others on the same subject that my brain is now frazzled
 Author: BasKrie View Messages Posted By BasKrie
 Posted: Jul 25, 2020 01:20
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 51 times
 Topic: Administrative
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BasKrie (4746)

Location:  Netherlands, Drenthe
Member Since Contact Type Status
Dec 5, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: BasKrie
In Administrative, infinibrix writes:

  
Sorry you are Dutch so meant to say Netherlands not Denmark... I've been
reading too many posts from others on the same subject that my brain is now frazzled


I won't hold it against you
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Jul 24, 2020 11:45
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 38 times
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SylvainLS (32)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, infinibrix writes:
  […]
  That means that the changes are already in effect since July 1st, that seems
a bit strange doesn't it?
I don't think that this can be correct. For non VAT sellers this means that
the BL fees are 21% higher (for Dutch sellers), knowing that upfront ain't
nice, but having this after the fact is not done.

Please consult the legal department about this. Maybe also check if the changes
aren't coming to soon. As far as I know these kind of changes need to be
at least 14 days (maybe even 30) before the changes are implemented.

Well yes it probably would have seemed fairer to of started after the announcement
from the Month of August but either which way you have to remember that you would
only be charged those extra amounts on your sales to the US and so you will not
be paying that extra amount accross all your BL fees. I assume most of your sales
are currently generated from within Denamrk and the EU?

1. VAT is added on BL fees.  All of them.  Not on “BL fees for sales in the USA.”

2. Even is the rise was small or non-existant (because no sales to the USA in
that period), a contract (the ToS) can’t be changed unilaterally AND retroactively.
 Author: BasKrie View Messages Posted By BasKrie
 Posted: Jul 25, 2020 01:24
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 50 times
 Topic: Administrative
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BasKrie (4746)

Location:  Netherlands, Drenthe
Member Since Contact Type Status
Dec 5, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: BasKrie
In Administrative, SylvainLS writes:
  In Administrative, infinibrix writes:
  […]
  That means that the changes are already in effect since July 1st, that seems
a bit strange doesn't it?
I don't think that this can be correct. For non VAT sellers this means that
the BL fees are 21% higher (for Dutch sellers), knowing that upfront ain't
nice, but having this after the fact is not done.

Please consult the legal department about this. Maybe also check if the changes
aren't coming to soon. As far as I know these kind of changes need to be
at least 14 days (maybe even 30) before the changes are implemented.

Well yes it probably would have seemed fairer to of started after the announcement
from the Month of August but either which way you have to remember that you would
only be charged those extra amounts on your sales to the US and so you will not
be paying that extra amount accross all your BL fees. I assume most of your sales
are currently generated from within Denamrk and the EU?

1. VAT is added on BL fees.  All of them.  Not on “BL fees for sales in the USA.”

2. Even is the rise was small or non-existant (because no sales to the USA in
that period), a contract (the ToS) can’t be changed unilaterally AND retroactively.

Indeed, it is on all fees, not only the (some) US orders.
And yes, my main point is that the new ToS is after the fact.

Not that I'm planning it, but when a seller doesn't agree with the new
ToS, will he/she be invoiced without VAT, or not invoiced at all?
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Jul 25, 2020 08:07
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 57 times
 Topic: Administrative
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SylvainLS (32)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, BasKrie writes:
  […]
Not that I'm planning it, but when a seller doesn't agree with the new
ToS, will he/she be invoiced without VAT, or not invoiced at all?

I guess these two things will happen:

1. Their store will be closed for non payment of their fees.

2. They won’t be able to log in and, eventually, their account will be terminated.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 14:31
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 70 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.

That means that the changes are already in effect since July 1st, that seems
a bit strange doesn't it?
I don't think that this can be correct. For non VAT sellers this means that
the BL fees are 21% higher (for Dutch sellers), knowing that upfront ain't
nice, but having this after the fact is not done.

Please consult the legal department about this. Maybe also check if the changes
aren't coming to soon. As far as I know these kind of changes need to be
at least 14 days (maybe even 30) before the changes are implemented.

BrickLink bills people at differing intervals and some people will undoubtedly
be paying fees they accumulated months or years ago. But as long as the TOS is
signed before the invoices are sent out, we are covered.

We have consulted with legal, tax, and a number of other groups.
 Author: BasKrie View Messages Posted By BasKrie
 Posted: Jul 25, 2020 01:48
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 78 times
 Topic: Administrative
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BasKrie (4746)

Location:  Netherlands, Drenthe
Member Since Contact Type Status
Dec 5, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: BasKrie
In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.

That means that the changes are already in effect since July 1st, that seems
a bit strange doesn't it?
I don't think that this can be correct. For non VAT sellers this means that
the BL fees are 21% higher (for Dutch sellers), knowing that upfront ain't
nice, but having this after the fact is not done.

Please consult the legal department about this. Maybe also check if the changes
aren't coming to soon. As far as I know these kind of changes need to be
at least 14 days (maybe even 30) before the changes are implemented.

BrickLink bills people at differing intervals and some people will undoubtedly
be paying fees they accumulated months or years ago. But as long as the TOS is
signed before the invoices are sent out, we are covered.

We have consulted with legal, tax, and a number of other groups.

And no VAT should be charged on those fees either. The service for which has
to be paid already has been done and can't be prone to new rules.
What if I don't agree to the ToS before the invoices are sent? Will it be
without VAT? Or no invoice at all?
 Author: VividBricks View Messages Posted By VividBricks
 Posted: Jul 29, 2020 09:45
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 52 times
 Topic: Administrative
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VividBricks (2437)

Location:  Netherlands, Noord-Holland
Member Since Contact Type Status
Sep 1, 2013 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Vivid Bricks
  I don't think that this can be correct. For non VAT sellers this means that
the BL fees are 21% higher (for Dutch sellers), knowing that upfront ain't
nice, but having this after the fact is not done.

Please consult the legal department about this. Maybe also check if the changes
aren't coming to soon. As far as I know these kind of changes need to be
at least 14 days (maybe even 30) before the changes are implemented.

No offense, as I respect your store and the way you run it, but to be fair; In
the Netherlands you're required by law to register yourself at the Chamber
of Commerce within a week after starting to actively sell goods and/or services
for more than a symbolic value. So I assume you did, since you question the legal
department of LEGO and setting up an online store with goods for market prices
is against the law without registration. (The same laws you agreed to obey in
previous ToS's)

This registration comes with a VAT ID and you're obligated to charges VAT
unless the Tax Administration gives you an exemption (Although I can hardly imagine
that being applicable for a store the size of yours to stay below the threshold).
But say you're exempted from charging VAT, you can't apply for VAT refund
or intra-community VAT deduction as well. Which is more than a fair trade-off,
unless 4/5th of your sales leaves the EU. But then you can always choose to contact
the Tax Administration to withdraw your exemption.

Since LEGO is registered as a company here in the EU and they now own BrickLink,
they must charge VAT on their services in the EU unless intra-community VAT rules
apply for you. So it's not a matter of a ToS, but legislation. So at the
end of the day; if you run your store within Dutch laws, as required by the ToS,
nothing really changes.
 Author: Dimi_DBB View Messages Posted By Dimi_DBB
 Posted: Jul 24, 2020 11:59
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 47 times
 Topic: Administrative
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Dimi_DBB (83)

Location:  Belgium, Limburg
Member Since Contact Type Status
Nov 15, 2019 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Dream, Buy & Build
In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.

Well, actually it could be even from orders made before July then?

If the next fees invoice that gets mailed will include all orders after the previous
invoice was sent. So a small hobby seller that had to pay his last fees in January,
now has to pay VAT on all orders starting from February?
I know the amount will be small, but that still seems unfair imo.

Wouldn't it be better to start adding VAT to fees from orders made in August?
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 16:17
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 56 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, Dimi_DBB writes:
  In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.

Well, actually it could be even from orders made before July then?

If the next fees invoice that gets mailed will include all orders after the previous
invoice was sent. So a small hobby seller that had to pay his last fees in January,
now has to pay VAT on all orders starting from February?
I know the amount will be small, but that still seems unfair imo.

Wouldn't it be better to start adding VAT to fees from orders made in August?

It wouldn't matter, because no matter how far back you go, or how much lead
time you give, there will always be cases where people pay fees that had accumulated
on their account a long time ago. There are regularly people paying fees that
were generated several years ago.
 Author: bricksinbins View Messages Posted By bricksinbins
 Posted: Jul 29, 2020 08:18
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 62 times
 Topic: Administrative
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bricksinbins (917)

Location:  Finland, Pohjanmaa
Member Since Contact Type Status
Nov 4, 2004 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Bricks in Bins
In Administrative, Admin_Russell writes:
  In Administrative, Dimi_DBB writes:
  In Administrative, Admin_Russell writes:
  In Administrative, BasKrie writes:
  In Administrative, Admin_Russell writes:
  Dear BrickLink member,

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.


So the invoice for the fees for the orders made in July will include VAT?
Because that fees invoice will get mailed at Aug 5.

Correct.

Well, actually it could be even from orders made before July then?

If the next fees invoice that gets mailed will include all orders after the previous
invoice was sent. So a small hobby seller that had to pay his last fees in January,
now has to pay VAT on all orders starting from February?
I know the amount will be small, but that still seems unfair imo.

Wouldn't it be better to start adding VAT to fees from orders made in August?

It wouldn't matter, because no matter how far back you go, or how much lead
time you give, there will always be cases where people pay fees that had accumulated
on their account a long time ago. There are regularly people paying fees that
were generated several years ago.

So you apply new rules, that are not yet in effect and that we have not agreed
to, to transactions that have already happened? Got it. Does that make any sense
at all? NO.
 Author: calsbricks View Messages Posted By calsbricks
 Posted: Jul 24, 2020 05:38
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 111 times
 Topic: Administrative
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calsbricks (6396)

Location:  United Kingdom, England
Member Since Contact Type Status
Aug 12, 2008 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: CalsBricks
In Administrative, Admin_Russell writes:
  Dear BrickLink member,

Over the next few weeks, BrickLink will undergo some changes that will affect
our membership. These changes are necessary for our platform to be compliant
with sales and use tax and VAT legislation where applicable. We also feel they
will help build our reputation as a well-regarded ecommerce site. These changes
are broken down into three categories outlined below:

1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.

3) We will soon present you with a revised Terms of Service. You will have about
a week to read the new terms before the terms go into effect on Aug 4, 2020.
The major changes are related to the charging and collecting of taxes and the
change of company from BrickLink Limited to LEGO BrickLink, Inc.

For further information about these changes, please visit this FAQ page:

https://www.bricklink.com/help.asp?helpID=2501

If you have questions, please reply to this post or send a message to customersupport@bricklink.com


The BrickLink Team

Okay - good morning

Having just completed a 45 minute video conference call with one of our charity
customers on MTD for VAT, I arrive at Bricklink to find more noises about taxation.
Let me see if I have got this right.

1. Bricklink have now registered to collect some US State taxes (California and
Connecticut initially). So sales to the states will include a sales tax amount
which Bricklink will collect from the buyer - but the only feasible way at present
for them to do that is via onsite payment - how exactly will that work. The customer
will pay the total amount to the store or will it be split at Paypal by some
means so that Bricklink gets its sales tax and the store gets its money? Interesting
/ But of course this will only work where onsite payment is used. Hmmm
2, For outside the USA we have the EU and the UK, and other non eu countries
and their varying rates of vat to deal with. We also have the added complications
of individual countries legislation on VAT. For example in the UK there is a
minimum threshold for registering for Vat (Currently around £85,000 per annum)
We also have Brexit to consider. For the moment it looks like Bricklink will
just charge vat on to the stores fees and that can be collected without onsite
payment. Fine, but it immediately adds 20% more costs to having a bricklink store.
There are to the best of our reckoning only a handful of stores in the UK who
are registered for vat.
3. We cannot remove US states where this applies in our shipping methods, so
do we simply remove the US, or if we do not remove them we cannot accept orders
from states where this applies. Not the best news to wake up to is it? Implement
onsite payment - no thank you - that means we have to sign up to PP for marketplaces
and that is not going to happen whilst the Paypal terms are what they are.

So not the greatest of starts to the day - and somewhere I read the old phrase
if it moves tax it - how very appropriate.
 Author: paulvdb View Messages Posted By paulvdb
 Posted: Jul 24, 2020 05:45
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 64 times
 Topic: Administrative
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paulvdb (6599)

Location:  Netherlands, Overijssel
Member Since Contact Type Status
Nov 14, 2007 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Paul's Dutch Brick Store
BrickLink Inventories Administrator (?)
In Administrative, calsbricks writes:
  3. We cannot remove US states where this applies in our shipping methods, so
do we simply remove the US, or if we do not remove them we cannot accept orders
from states where this applies. Not the best news to wake up to is it? Implement
onsite payment - no thank you - that means we have to sign up to PP for marketplaces
and that is not going to happen whilst the Paypal terms are what they are.

You don't have to do anything. See Russell's poat https://www.bricklink.com/message.asp?ID=1211804

Buyers from those states will not be able to place orders in stores that don't
accept onsite payment methods.
 Author: calsbricks View Messages Posted By calsbricks
 Posted: Jul 24, 2020 05:48
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 57 times
 Topic: Administrative
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calsbricks (6396)

Location:  United Kingdom, England
Member Since Contact Type Status
Aug 12, 2008 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: CalsBricks
In Administrative, paulvdb writes:
  In Administrative, calsbricks writes:
  3. We cannot remove US states where this applies in our shipping methods, so
do we simply remove the US, or if we do not remove them we cannot accept orders
from states where this applies. Not the best news to wake up to is it? Implement
onsite payment - no thank you - that means we have to sign up to PP for marketplaces
and that is not going to happen whilst the Paypal terms are what they are.

You don't have to do anything. See Russell's poat https://www.bricklink.com/message.asp?ID=1211804

Buyers from those states will not be able to place orders in stores that don't
accept onsite payment methods.


Thanks for that missed that one.
 Author: Admin_Russell View Messages Posted By Admin_Russell
 Posted: Jul 24, 2020 10:08
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 76 times
 Topic: Administrative
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Admin_Russell

Location:  USA, California
Member Since Contact Type Status
May 9, 2017 Contact Member Admin
Buying Privileges - OKSelling Privileges - OK
BrickLink Administrator
In Administrative, calsbricks writes:

  Okay - good morning

Having just completed a 45 minute video conference call with one of our charity
customers on MTD for VAT, I arrive at Bricklink to find more noises about taxation.
Let me see if I have got this right.

1. Bricklink have now registered to collect some US State taxes (California and
Connecticut initially). So sales to the states will include a sales tax amount
which Bricklink will collect from the buyer - but the only feasible way at present
for them to do that is via onsite payment - how exactly will that work. The customer
will pay the total amount to the store or will it be split at Paypal by some
means so that Bricklink gets its sales tax and the store gets its money? Interesting
/ But of course this will only work where onsite payment is used. Hmmm

Yes, at least for now we just have two payment options available - Onsite PayPal
and Onsite Stripe. If this is too restrictive and becomes and issue, of course
we will consider other options.

  2, For outside the USA we have the EU and the UK, and other non eu countries
and their varying rates of vat to deal with. We also have the added complications
of individual countries legislation on VAT. For example in the UK there is a
minimum threshold for registering for Vat (Currently around £85,000 per annum)
We also have Brexit to consider. For the moment it looks like Bricklink will
just charge vat on to the stores fees and that can be collected without onsite
payment. Fine, but it immediately adds 20% more costs to having a bricklink store.
There are to the best of our reckoning only a handful of stores in the UK who
are registered for vat.

Approximately 20% or so more on the 3% fee, yes.

  3. We cannot remove US states where this applies in our shipping methods, so
do we simply remove the US, or if we do not remove them we cannot accept orders
from states where this applies. Not the best news to wake up to is it? Implement
onsite payment - no thank you - that means we have to sign up to PP for marketplaces
and that is not going to happen whilst the Paypal terms are what they are.

No need to adjust any shipping methods. Buyers in states where BrickLink is collecting
tax will not be able to check out of stores without at least one of the two designated
payment methods.
 Author: Dimi_DBB View Messages Posted By Dimi_DBB
 Posted: Jul 24, 2020 05:51
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 86 times
 Topic: Administrative
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Dimi_DBB (83)

Location:  Belgium, Limburg
Member Since Contact Type Status
Nov 15, 2019 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Dream, Buy & Build
In Administrative, Admin_Russell writes:
  Dear BrickLink member,

Over the next few weeks, BrickLink will undergo some changes that will affect
our membership. These changes are necessary for our platform to be compliant
with sales and use tax and VAT legislation where applicable. We also feel they
will help build our reputation as a well-regarded ecommerce site. These changes
are broken down into three categories outlined below:

1) We will begin to collect sales and use tax in the United States. We have already
registered in two states – Connecticut and California – and we plan to register
in more states within the next few months. All orders shipping to an address
in these states, even from stores outside the United States, will be subject
to this tax requirement. We anticipate BrickLink will start collecting this tax
by the end of September.

2) We will begin charging VAT on BrickLink fees to EU sellers who have not enabled
the VAT feature on BrickLink. The first invoice date this will take effect on
is Aug 5, 2020. All VAT-enabled EU sellers will now have their VAT registration
checked by BrickLink.

3) We will soon present you with a revised Terms of Service. You will have about
a week to read the new terms before the terms go into effect on Aug 4, 2020.
The major changes are related to the charging and collecting of taxes and the
change of company from BrickLink Limited to LEGO BrickLink, Inc.

For further information about these changes, please visit this FAQ page:

https://www.bricklink.com/help.asp?helpID=2501

If you have questions, please reply to this post or send a message to customersupport@bricklink.com


The BrickLink Team

So, if a US-buyer orders from a private EU-based seller, then Bricklink collects
taxes 2 times for the same transaction?

Is that normal or legal?
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Jul 24, 2020 07:22
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 64 times
 Topic: Administrative
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SylvainLS (32)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Buyer
Buying Privileges - OK
In Administrative, Dimi_DBB writes:
  […]
So, if a US-buyer orders from a private EU-based seller, then Bricklink collects
taxes 2 times for the same transaction?

No.
BL charges VAT on your fees.
BL charges Sales taxes on the buyer’s order.
Two separate things.


  Is that normal or legal?

Yes.

E.g.:
— Buyer has an order with a total of 100€ (parts+shipping+whatever that YOU invoiced).
— BL charges them the Tales tax for the state, say 10%.
— Buyer pays a total of 110€.
— You receive 100€.
— BL receives 10€ for the Sales tax.
— At the end of the month, BL charges you 100 * 0.03 * 1.19 = 3.57€ of fees,
including 19% for Belgian VAT.

You’ll say “but the 3.57€ are included in the 100€ so the buyer pays taxes on
them!” but it’s not what happened: the BL fees are not taxed, your order is. 
The BL fees are a cost to you so you calculate your prices to have enough to
pay them.
You aren’t selling for 96.46€ with BL charging 3€ of fees and 0.57€ of VAT on
top.  You’re selling for 100€ total and that costs you 3.57€ in BL fees.


As for the VAT you paid when you bought your stock, it disappeared when you bought
your stock because you’re not VAT-registered.  It’s not a tax anymore, it’s just
part of the price.
And BL has nothing to do with that.
 Author: yorbrick View Messages Posted By yorbrick
 Posted: Jul 24, 2020 07:44
 Subject: Re: Terms of Service Update for Tax Compliance
 Viewed: 54 times
 Topic: Administrative
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yorbrick (781)

Location:  United Kingdom, England