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When will VAT be charged?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

VAT will only be charged on orders that are produced in our European factories and shipped to an address of a Member State of the European Union. Please note VAT will not be charged to Special Zones within the EU.

Please see the breakdown below for when VAT will and will not be charged.

  • SPOD will charge German VAT on all orders being delivered to Germany. 
  • If you supply us a valid German VAT ID – SPOD will charge the required German rate of VAT on all orders being delivered to EU countries. 
  • If you supply us a valid VAT ID from a EU country other than Germany – SPOD will not charge VAT on the orders that are being delivered to EU countries (excluding Germany).
  • If you do not supply us a VAT ID – SPOD will charge VAT on the orders that are being delivered to the EU. To determine the correct VAT rate, SPOD will still need to know if you are a small or regular business.
    • Generally SPOD will charge the German rate of VAT, only under the following conditions we will charge the VAT rate of the shipping country:
      • You are a small business registered in the same EU country where the delivery is going to
      • SPOD is registered for VAT in this country
      • You have not exceeded your acquisition threshold where your small business is located

 

Please see here for an explanation on small and regular businesses.

VAT will only be charged on the production + shipping cost you as the merchant pay to SPOD, based on the transaction between SPOD and you.

Please also be aware of the VAT obligations you have as the merchant on the delivery of your orders to your customers.

 

 

Which countries will VAT be charged in?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

VAT charges can apply to the Member States of the European Union. Please note that no VAT is charged for deliveries to special zones within the EU.

For deliveries to addresses outside of the EU, VAT charges will not apply. Customs and import taxes charges may well apply to deliveries sent outside of the EU.

 

Where is SPOD registered for VAT?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

SPOD (Spreadshirt Print On Demand GmbH) is registered for VAT in Germany. Please note SPOD could register for VAT in more countries in the future.

Can I claim any of the VAT charges back?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

In this section we will talk about VAT that was charged on the transaction between you the merchant and SPOD, meaning VAT charges on the Production Cost and the Shipping Cost.

If you are a merchant not based in Germany, you do not have a valid VAT ID, under certain conditions you can claim back the VAT from the German authorities on orders that were delivered to you as the merchant.

This can be done with the following process (Input VAT refund procedure):

Procedure for merchants located in the EU

You as the merchant can submit an application for reimbursement via the electronic portal of the Member State where your business is located.

Procedure for merchants located outside the EU

Merchants located outside of the EU can apply for a refund of the German VAT, provided that your business is not registered for VAT in Germany.

If your business is registered for VAT in Germany, you can claim the refund within your German VAT return.

Merchants without German VAT registration should contact the Bundeszentralamt für Steuern.

 

 

What is a small business and what is a regular business?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

Small businesses are enterprises with an annual turnover not exceeding a given threshold, depending on the country in which your business is registered, this may vary.

Please see the list of EU countries below and their definitions on what the threshold is for a small business:

 

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Should I, as the merchant, charge my customers VAT?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

If you have a business that meets the requirements to become a VAT registered business, then you need to collect the VAT from your customer and declare and pay VAT to the tax office depending on the countries you are registered in. For small businesses something else may apply. Please check this with your tax advisor.

What do I need to know about VAT on Shopify?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

 As we can’t speak for Shopify, we can only point you towards their help section here, where you can learn how set up tax settings. 

How do I submit a VAT ID to SPOD?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

In the settings tab in the app, there is a section called Taxes (check it is still Taxes). Here you will find the possibility to upload VAT ID’s that will be sent for verification. We validate your VAT ID automatically by using verified VAT ID validation services. Please make sure the correct VAT ID and business address is submitted to us via the app. In order to check this you can use the VAT number validation service from the European Commission here.

 

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Where is the VAT seen in the pricing in-app?

The following is not tax advice. Please clarify with a tax advisor your individual tax obligations.

The VAT applied to an order can be seen on the order page within the SPOD app. Once you open an order you will see the applied VAT rate and amount for the order. Also on your .csv exports and on the invoices that you can download in the documents column on the order page.

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