Don't know about Marketplace Facilitator Rules? The tax guide for the marketplace facilitator act in Germany is specially designed for small businesses which are e-commerce sellers.
Marketplace Facilitator rules are a set of laws and regulations that require online marketplaces to collect and remit sales tax on behalf of third-party sellers who use their platform to sell goods or services. The rules are designed to simplify tax compliance for small businesses that sell products online by shifting the burden of tax collection and remittance to the marketplace operator.
Marketplace facilitators must register with the state, which allows them to collect sales tax on behalf of third-party sellers. They must also provide quarterly reports to the state regarding the amount of sales tax they have collected from each seller, along with information about the number of transactions between each seller and buyer.
Marketplace facilitator laws are implemented in order to improve tax collection among marketplace sellers.
In the United States, for example, many states have implemented Marketplace Facilitator laws in recent years. Under these laws, marketplaces such as Amazon, eBay, and Etsy are required to collect and remit sales tax on behalf of their third-party sellers if certain criteria are met, such as if the marketplace facilitates a certain number of transactions or generates a certain amount of revenue.These laws allow states to require marketplaces like Airbnb and Uber to collect local taxes from their hosts and drivers respectively. The rationale behind these laws is that "marketplaces" are not just online platforms—they also include brick-and-mortar stores that sell goods or services over the internet. In other words: Marketplaces generate revenue; employ people; they own property within state borders. Therefore it only makes sense that they should be taxed like any other business operating within state borders!
The marketplace generates a certain amount of revenue, by facilitating transactions between third-party sellers and buyers. The marketplace is based in a certain state, which has passed legislation requiring all third-party sellers to register with the marketplace.
The specific requirements and thresholds for Marketplace Facilitator rules vary by jurisdiction, and they may apply to different types of taxes, such as state sales tax or local use tax. It's important for online sellers to understand the applicable Marketplace Facilitator rules in their jurisdiction to ensure they are properly collecting and remitting taxes on their sales.
Sellers should also be aware that the definition of “marketplace facilitator” is not necessarily set in stone—it will change depending on the circumstances of each situation. For example, if a seller has a physical presence in one state but sells products across several states through their website, they may be considered a marketplace facilitator in some states but not others.
Questions and Answers
Will the Marketplace Facilitator rules in Germany still consider Amazon to be acting as the marketplace facilitator even whensome of our German customer orders are being fulfilled from stock that we have imported into Germany
and which is being held in the German warehouse.
- i.e. do the import and storing of stock mean that the marketplace facilitator rules no longer apply to Amazon even though an eCommerce seller is still not selling directly on amazon.de
- and do not have a seller account with amazon.de?
Amazon is considered a Marketplace Facilitator under German law if it fulfills all three conditions set out by German law:
- it offers its services to third parties
- via an online platform accessible to consumers and
- for business transactions between seller and buyer.
In order for Amazon's fulfillment services to be considered "offering" under this definition, Amazon must make them available either directly or indirectly through an online platform that is accessible to consumers but does not provide any other service than providing these services. Therefore, even if Amazon were only offering storage space at its own warehouses located within Germany, this would not preclude it from being considered a Marketplace Facilitator.
Marketplace facilitator laws are typically designed to require online marketplaces to collect and remit sales tax on behalf of third-party sellers. Whether Amazon is considered a marketplace facilitator in Germany would depend on various factors, including the specific language of the relevant laws, the nature of Amazon's role in facilitating sales, and the extent to which Amazon exercises control over the sales process.
An online marketplace facilitator is defined as a "person who makes available an online platform for concluding contracts between consumers and retailers or between retailers and consumers." In Germany, it is clear that Amazon does not make available its platform for concluding contracts between consumers and retailers or between retailers and consumers. Rather, Amazon facilitates these types of transactions by providing a platform for third-party sellers to sell their wares through its website.
German law also defines a seller as any person who offers goods or services to third parties "with the purpose of obtaining profit." It is unclear whether Amazon would be considered a seller under this definition because it does not provide goods or services directly to customers; rather, it provides only virtual storefronts for third-party sellers to sell their products through its website.
The applicable laws and regulations in Germany may still consider Amazon to be a marketplace facilitator despite the import and storage of stock. This means that Amazon would likely be required to continue collecting and remitting sales tax on behalf of third-party sellers. However, if the laws and regulations are unclear or have not been updated to address this specific scenario, it may be necessary to seek legal advice from an expert.