Hello everybody, I hope you can help me. I have a full Company since this year,
no more "Kleingewerbe (I had before). When I sell stuff, to United Kingdom
for example (There are also some States in America) Bricklink makes a VAT that
I can download and put on the Package as a proof, that Tax/VAT is collected by
Bricklink (that money comes first to my PayPal Account and then it gets paid
to the Country, here UK) But now my Question, Bricklink generates a new "Invoice"
that I hang on the Package with the VAT ID of Bricklink and the Buyer Information,
there is no more Information on this Invoice about me. So, it looks like, that
the Buyer paid Bricklink the Amount of money and I have to make my Invoice to
Bricklink to be correct, or do I missunderstand something? My Tax Advisor told
me, I cant make a Invoice and Bricklink does one too. Maybe you can help me.
My Tax Advisor isnt sure, if Bricklink is a 100% Marketplace or the original
Seller of the Parts I offer. Thank you!
Falls jemand in deutsch helfen kann, was am geschicktesten wäre, bitte melden.
Vielen Dank!
Hello everybody, I hope you can help me. I have a full Company since this year,
no more "Kleingewerbe (I had before). When I sell stuff, to United Kingdom
for example (There are also some States in America) Bricklink makes a VAT that
I can download and put on the Package as a proof, that Tax/VAT is collected by
Bricklink (that money comes first to my PayPal Account and then it gets paid
to the Country, here UK) But now my Question, Bricklink generates a new "Invoice"
that I hang on the Package with the VAT ID of Bricklink and the Buyer Information,
there is no more Information on this Invoice about me. So, it looks like, that
the Buyer paid Bricklink the Amount of money and I have to make my Invoice to
Bricklink to be correct, or do I missunderstand something? My Tax Advisor told
me, I cant make a Invoice and Bricklink does one too. Maybe you can help me.
My Tax Advisor isnt sure, if Bricklink is a 100% Marketplace or the original
Seller of the Parts I offer. Thank you!
Falls jemand in deutsch helfen kann, was am geschicktesten wäre, bitte melden.
Vielen Dank!
BrickLink is the marketplace that is collecting and remitting VAT on your behalf
- that is why the invoice has BrickLink's VAT number on it
Hello everybody, I hope you can help me. I have a full Company since this year,
no more "Kleingewerbe (I had before). When I sell stuff, to United Kingdom
for example (There are also some States in America) Bricklink makes a VAT that
I can download and put on the Package as a proof, that Tax/VAT is collected by
Bricklink (that money comes first to my PayPal Account and then it gets paid
to the Country, here UK) But now my Question, Bricklink generates a new "Invoice"
that I hang on the Package with the VAT ID of Bricklink and the Buyer Information,
there is no more Information on this Invoice about me. So, it looks like, that
the Buyer paid Bricklink the Amount of money and I have to make my Invoice to
Bricklink to be correct, or do I missunderstand something? My Tax Advisor told
me, I cant make a Invoice and Bricklink does one too. Maybe you can help me.
My Tax Advisor isnt sure, if Bricklink is a 100% Marketplace or the original
Seller of the Parts I offer. Thank you!
Falls jemand in deutsch helfen kann, was am geschicktesten wäre, bitte melden.
Vielen Dank!
Hi,
Disclaimer: I’m not an accountant, I’m not a lawyer, I’m not talking for
BrickLink or LEGO, I may be a cat.
Here’s what happens for a non-EU buyer:
— The buyer makes an order to you.
— You invoice the buyer, without EU VAT (VAT 0% for export).
— BrickLink, as a marketplace, invoices the local taxes (UK VAT, US Sales Taxes,
etc.) to the buyer.
— The buyer pays all in one transaction.
— BrickLink(’s partner) collects the taxes from the transaction.
— You get the money you invoiced on your PayPal account.
Everything is done in one PayPal transaction, so eveything appears on it, but
you never really get the tax money.
You shouldn’t care about the taxes (except for the part where you join BrickLink’s
invoice and other info to prove to Customs it was correctly paid).
You certainly don’t account for the taxes / taxes should not appear in your accounts
or invoices.
As for the fact there’s two invoices:
1. You are selling to the buyer, so you write your invoice for the goods.
2. According to these marketplace laws that make BL collect the taxes, BrickLink
is “deemed supplier.” That makes BL responsible for collecting the taxes. And
as BL is a supplier and collects some taxes, that needs to appear on an invoice
too.
So, yes, you and BL are both writing an invoice for the order. But you’re writing
an invoice for the goods and BL is writing an invoice for the taxes. The invoices
are not for the same thing.
TL;DR: Forget the taxes. They are not your problem.
Disclaimer: I’m not an accountant, I’m not a lawyer, I’m not talking for
BrickLink or LEGO, I may be a cat.
Here’s what happens for a non-EU buyer:
— The buyer makes an order to you.
— You invoice the buyer, without EU VAT (VAT 0% for export).
— BrickLink, as a marketplace, invoices the local taxes (UK VAT, US Sales Taxes,
etc.) to the buyer.
— The buyer pays all in one transaction.
— BrickLink(’s partner) collects the taxes from the transaction.
— You get the money you invoiced on your PayPal account.
Everything is done in one PayPal transaction, so eveything appears on it, but
you never really get the tax money.
You shouldn’t care about the taxes (except for the part where you join BrickLink’s
invoice and other info to prove to Customs it was correctly paid).
You certainly don’t account for the taxes / taxes should not appear in your accounts
or invoices.
Is this sure? As far as I know I need to account every income so the UK
VAT / US tax are also incomes. Then of course I can account these partner fees
as expense but I need to issue invoice including the full amount since that's
the amount which landed on my PP account, regardless of VAT / tax. I might be
wrong.
As for the fact there’s two invoices:
1. You are selling to the buyer, so you write your invoice for the goods.
2. According to these marketplace laws that make BL collect the taxes, BrickLink
is “deemed supplier.” That makes BL responsible for collecting the taxes. And
as BL is a supplier and collects some taxes, that needs to appear on an invoice
too.
So, yes, you and BL are both writing an invoice for the order. But you’re writing
an invoice for the goods and BL is writing an invoice for the taxes. The invoices
are not for the same thing.
TL;DR: Forget the taxes. They are not your problem.
Is this sure? As far as I know I need to account every income so the UK
VAT / US tax are also incomes. Then of course I can account these partner fees
as expense but I need to issue invoice including the full amount since that's
the amount which landed on my PP account, regardless of VAT / tax. I might be
wrong.
I might be mistaken but I don’t think the tax money was ever in your accounts
so it can’t then be removed as an expense, it was added by the platform during
checkout and removed by the platform before it is deposited into your PayPal/stripe
account
Is this sure? As far as I know I need to account every income so the UK
VAT / US tax are also incomes. Then of course I can account these partner fees
as expense but I need to issue invoice including the full amount since that's
the amount which landed on my PP account, regardless of VAT / tax. I might be
wrong.
I might be mistaken but I don’t think the tax money was ever in your accounts
so it can’t then be removed as an expense, it was added by the platform during
checkout and removed by the platform before it is deposited into your PayPal/stripe
account
That’s my view too.
Besides, you can’t account for foreign taxes because you’re not the one who collect
them (you don’t have that right) and you have no way to remit them.
You are not involved with those taxes. It’s BL’s problem.
Is this sure? As far as I know I need to account every income so the UK
VAT / US tax are also incomes. Then of course I can account these partner fees
as expense but I need to issue invoice including the full amount since that's
the amount which landed on my PP account, regardless of VAT / tax. I might be
wrong.
I might be mistaken but I don’t think the tax money was ever in your accounts
so it can’t then be removed as an expense, it was added by the platform during
checkout and removed by the platform before it is deposited into your PayPal/stripe
account
That’s my view too.
Besides, you can’t account for foreign taxes because you’re not the one who collect
them (you don’t have that right) and you have no way to remit them.
You are not involved with those taxes. It’s BL’s problem.
Thanks for the answers, it's good to know. Let's be a sole proprietor
they said, it will be fun they said...
Is this sure? As far as I know I need to account every income so the UK
VAT / US tax are also incomes. Then of course I can account these partner fees
as expense but I need to issue invoice including the full amount since that's
the amount which landed on my PP account, regardless of VAT / tax. I might be
wrong.
I might be mistaken but I don’t think the tax money was ever in your accounts
so it can’t then be removed as an expense, it was added by the platform during
checkout and removed by the platform before it is deposited into your PayPal/stripe
account
That’s my view too.
Besides, you can’t account for foreign taxes because you’re not the one who collect
them (you don’t have that right) and you have no way to remit them.
You are not involved with those taxes. It’s BL’s problem.
As far as I am concerned even it is actually a TAX we (me at least) as a business
in EU just account for it as an extra fee from the marketplace, all the movements
fron BL orders and PayPal/Stripe have the complete amount in their totals, and
then BL takes its cut and PP/Stripe too. In my invoices I account the total in
and the the fees (tax + fees) out.
[…]
As far as I am concerned even it is actually a TAX we (me at least) as a business
in EU just account for it as an extra fee from the marketplace, all the movements
fron BL orders and PayPal/Stripe have the complete amount in their totals, and
then BL takes its cut and PP/Stripe too. In my invoices I account the total in
and the the fees (tax + fees) out.
But, besides making it look like you unduly collected foreign taxes, that increases
your income with money that you never had in hand.
[…]
As far as I am concerned even it is actually a TAX we (me at least) as a business
in EU just account for it as an extra fee from the marketplace, all the movements
fron BL orders and PayPal/Stripe have the complete amount in their totals, and
then BL takes its cut and PP/Stripe too. In my invoices I account the total in
and the the fees (tax + fees) out.
But, besides making it look like you unduly collected foreign taxes, that increases
your income with money that you never had in hand.
When you sell in Ebay or Amazon you also don't have the marketplaces fees
never in hand.
Business numbers have to account for a lot of things not just money in hand,
for example, on VAT-Free B2B orders you have to account for the VAT in and VAT
out, but you never pay or receive it on those sales.
But, besides making it look like you unduly collected foreign taxes, that increases
your income with money that you never had in hand.
When you sell in Ebay or Amazon you also don't have the marketplaces fees
never in hand.
Business numbers have to account for a lot of things not just money in hand,
for example, on VAT-Free B2B orders you have to account for the VAT in and VAT
out, but you never pay or receive it on those sales.
Yes but you’re at least responsible for that VAT.
You aren’t responsible for UK VAT or US Sales taxes.
But, besides making it look like you unduly collected foreign taxes, that increases
your income with money that you never had in hand.
When you sell in Ebay or Amazon you also don't have the marketplaces fees
never in hand.
Business numbers have to account for a lot of things not just money in hand,
for example, on VAT-Free B2B orders you have to account for the VAT in and VAT
out, but you never pay or receive it on those sales.
Yes but you’re at least responsible for that VAT.
You aren’t responsible for UK VAT or US Sales taxes.
The seller is responsible but the Marketplace facilitator does the collection.
Hmm, seems the seller is responsible for US sales tax, but not for EU VAT (which
is the text I base my reflection on; and which should also be similar for UK
and other European countries, as a) UK was still in EU when the rules were written,
b) they all want to be compatible/similar).
Also, you’re only responsible for the tax if the marketplace does not collect
it / if something goes wrong.
In a way, there’s “responsible” and there’s “responsible”: you are not “responsible”
in the sense that you are not registered in the US to collect and remit the tax,
you don’t do it, but you’re responsible in the sense that they can go after you
when somethig go wrong (read: the marketplace can shift any trouble your way).
I prefer the EU rule, “deemed supplier”, where if something is wrong, it’s the
bigger fish (the marketplace) they go after
Anyway, another question that BL (and LEGO’s lawyers) should help up with….
The seller is responsible but the Marketplace facilitator does the collection.
Hmm, seems the seller is responsible for US sales tax, but not for EU VAT (which
is the text I base my reflection on; and which should also be similar for UK
and other European countries, as a) UK was still in EU when the rules were written,
b) they all want to be compatible/similar).
Also, you’re only responsible for the tax if the marketplace does not collect
it / if something goes wrong.
In a way, there’s “responsible” and there’s “responsible”: you are not “responsible”
in the sense that you are not registered in the US to collect and remit the tax,
you don’t do it, but you’re responsible in the sense that they can go after you
when somethig go wrong (read: the marketplace can shift any trouble your way).
I prefer the EU rule, “deemed supplier”, where if something is wrong, it’s the
bigger fish (the marketplace) they go after
Anyway, another question that BL (and LEGO’s lawyers) should help up with….
Oh, also, note that Stripe says the seller should report the tax collected by
the marketplace to the US state(s).
You are not doing that, because, again, the US state doesn’t know about you.
That’s a rule that seems to apply only if you are in the US (state).
As far as I am concerned even it is actually a TAX we (me at least) as a business
in EU just account for it as an extra fee from the marketplace, all the movements
fron BL orders and PayPal/Stripe have the complete amount in their totals, and
then BL takes its cut and PP/Stripe too. In my invoices I account the total in
and the the fees (tax + fees) out.
Is this sure? As far as I know I need to account every income so the UK
VAT / US tax are also incomes. Then of course I can account these partner fees
as expense but I need to issue invoice including the full amount since that's
the amount which landed on my PP account, regardless of VAT / tax. I might be
wrong.
I might be mistaken but I don’t think the tax money was ever in your accounts
so it can’t then be removed as an expense, it was added by the platform during
checkout and removed by the platform before it is deposited into your PayPal/stripe
account
If I understand my PayPal 1099 correctly*, the total is all orders including
state sales tax. So the "partner fee" for the sales tax collected by
BL should be counted as a business expense, at least here in the USA.
*I only checked one month but I'm not really entertaining the idea that one
month was exactly correct and that others would be off by 5-10%.
Hello everybody, I hope you can help me. I have a full Company since this year,
no more "Kleingewerbe (I had before). When I sell stuff, to United Kingdom
for example (There are also some States in America) Bricklink makes a VAT that
I can download and put on the Package as a proof, that Tax/VAT is collected by
Bricklink (that money comes first to my PayPal Account and then it gets paid
to the Country, here UK) But now my Question, Bricklink generates a new "Invoice"
that I hang on the Package with the VAT ID of Bricklink and the Buyer Information,
there is no more Information on this Invoice about me. So, it looks like, that
the Buyer paid Bricklink the Amount of money and I have to make my Invoice to
Bricklink to be correct, or do I missunderstand something? My Tax Advisor told
me, I cant make a Invoice and Bricklink does one too. Maybe you can help me.
My Tax Advisor isnt sure, if Bricklink is a 100% Marketplace or the original
Seller of the Parts I offer. Thank you!
Falls jemand in deutsch helfen kann, was am geschicktesten wäre, bitte melden.
Vielen Dank!
Everything you wrote looks correct to me, except:
Hi,
Disclaimer: I’m not an accountant, I’m not a lawyer, I’m not talking for
BrickLink or LEGO, I may be a cat.
Here’s what happens for a non-EU buyer:
— The buyer makes an order to you.
— You invoice the buyer, without EU VAT (VAT 0% for export).
— BrickLink, as a marketplace, invoices the local taxes (UK VAT, US Sales Taxes,
etc.) to the buyer.
— The buyer pays all in one transaction.
— BrickLink(’s partner) collects the taxes from the transaction.
— You get the money you invoiced on your PayPal account.
Everything is done in one PayPal transaction, so eveything appears on it, but
you never really get the tax money.
You shouldn’t care about the taxes (except for the part where you join BrickLink’s
invoice and other info to prove to Customs it was correctly paid).
You certainly don’t account for the taxes / taxes should not appear in your accounts
or invoices.
As for the fact there’s two invoices:
This. “There are two invoices”!
1. You are selling to the buyer, so you write your invoice for the goods.
2. According to these marketplace laws that make BL collect the taxes, BrickLink
is “deemed supplier.” That makes BL responsible for collecting the taxes. And
as BL is a supplier and collects some taxes, that needs to appear on an invoice
too.
So, yes, you and BL are both writing an invoice for the order. But you’re writing
an invoice for the goods and BL is writing an invoice for the taxes. The invoices
are not for the same thing.
TL;DR: Forget the taxes. They are not your problem.
Thank you so much for this detail Information, I hope that helps my Tax Advisor
to understand.
Best wishes!!!
In Taxes, SylvainLS writes:
In Taxes, ChrispyTheNerdy writes:
Hello everybody, I hope you can help me. I have a full Company since this year,
no more "Kleingewerbe (I had before). When I sell stuff, to United Kingdom
for example (There are also some States in America) Bricklink makes a VAT that
I can download and put on the Package as a proof, that Tax/VAT is collected by
Bricklink (that money comes first to my PayPal Account and then it gets paid
to the Country, here UK) But now my Question, Bricklink generates a new "Invoice"
that I hang on the Package with the VAT ID of Bricklink and the Buyer Information,
there is no more Information on this Invoice about me. So, it looks like, that
the Buyer paid Bricklink the Amount of money and I have to make my Invoice to
Bricklink to be correct, or do I missunderstand something? My Tax Advisor told
me, I cant make a Invoice and Bricklink does one too. Maybe you can help me.
My Tax Advisor isnt sure, if Bricklink is a 100% Marketplace or the original
Seller of the Parts I offer. Thank you!
Falls jemand in deutsch helfen kann, was am geschicktesten wäre, bitte melden.
Vielen Dank!
Hi,
Disclaimer: I’m not an accountant, I’m not a lawyer, I’m not talking for
BrickLink or LEGO, I may be a cat.
Here’s what happens for a non-EU buyer:
— The buyer makes an order to you.
— You invoice the buyer, without EU VAT (VAT 0% for export).
— BrickLink, as a marketplace, invoices the local taxes (UK VAT, US Sales Taxes,
etc.) to the buyer.
— The buyer pays all in one transaction.
— BrickLink(’s partner) collects the taxes from the transaction.
— You get the money you invoiced on your PayPal account.
Everything is done in one PayPal transaction, so eveything appears on it, but
you never really get the tax money.
You shouldn’t care about the taxes (except for the part where you join BrickLink’s
invoice and other info to prove to Customs it was correctly paid).
You certainly don’t account for the taxes / taxes should not appear in your accounts
or invoices.
As for the fact there’s two invoices:
1. You are selling to the buyer, so you write your invoice for the goods.
2. According to these marketplace laws that make BL collect the taxes, BrickLink
is “deemed supplier.” That makes BL responsible for collecting the taxes. And
as BL is a supplier and collects some taxes, that needs to appear on an invoice
too.
So, yes, you and BL are both writing an invoice for the order. But you’re writing
an invoice for the goods and BL is writing an invoice for the taxes. The invoices
are not for the same thing.
TL;DR: Forget the taxes. They are not your problem.
Germany, Bayern
USA, New Jersey
France, Nouvelle-Aquitaine
Austria, Wien
Canada, Ontario
Spain, Comunidad Valenciana
Netherlands, Groningen