How will I pay VAT on my orders?

Effective as of 1st February 2022

We are VAT registered in the Netherlands, Belgium and Germany. To determine from which entity we’ll create the invoice is dependent on the country where the retailer is based. The VAT always follows the shipment. When a transaction between two companies from different EU countries occurs, the VAT is shifted. 

Domestic transactions

Scenario 1: A transaction between retailer and brand takes place in a country where Orderchamp does have a local entity and/or registration. This is the case at the moment for The Netherlands, Belgium and Germany. 

Example 1a: A Dutch retailer buys from a Dutch brand. Since Orderchamp has a local entity, we charge local VAT. 

  • Dutch brand charges local VAT to Orderchamp NL entity
  • Orderchamp NL entity charges local VAT to Dutch retailer

Example 1b: A Belgium retailer buys from a Belgium brand. Since Orderchamp has a local registration, we charge local VAT. 

  • Belgium brand charges local VAT to Orderchamp (BE) registration
  • Orderchamp (BE) registration charges local VAT to Belgium retailer

Example 1c: A German retailer buys from a German brand. Since Orderchamp has a local registration, we charge local VAT. 

  • German brand charges local VAT to Orderchamp (DE) registration
  • Orderchamp (DE) registration charges local VAT to German retailer

International transactions within Europe

Scenario 1: A transaction between retailer and brand takes place in two different countries within Europe where Orderchamp does have a local entity and/or registration. In this case, the “ABC” route is followed: 1) all entities involved are in different countries and 2) the order moves directly from A to C; whereby all VAT is shifted.

Example 1a: A German retailer buys from an Italian brand. 

  • Italian brand charges 0% reverse charge VAT to Orderchamp NL entity
  • Orderchamp NL entity charges 0% reverse charge VAT to German retailer

Example 1b: A French retailer buys from an German brand. 

  • German brand charges 0% reverse charge VAT to Orderchamp NL entity
  • Orderchamp NL entity charges 0% reverse charge VAT to French retailer

Scenario 2: A transaction between retailer and brand takes place in a country where Orderchamp does not have a local entity and/or registration. In this case, the brand charges 0% reverse charge VAT to the Orderchamp NL entity. The VAT for the retailer is also charged at 0% reverse charge. 

Example 2a: A French retailer buys from an Italian brand. 

  • Italian brand charges 0% reverse charge VAT to Orderchamp NL entity
  • Orderchamp NL entity charges 0% reverse charge VAT to French retailer

Please note: we are expanding into new markets and therefore applying for registration in most European countries. While in some cases it is allowed to start charging local VAT before the registration process is completed, we decided for clarity reasons to follow scenario 2 until then and use our Orderchamp NL entity. 

Buying from brands outside of the EU / Selling to retailers in the EU

Scenario 1: a transaction between an EU retailer and a non-EU brand. 

Example 1a: A German retailer buys from a UK brand.

  • UK brand charges 0% VAT to Orderchamp NL entity
  • Orderchamp NL entity charges 0% reverse charge VAT to German retailer
  • The carrier (may) charge local import duties directly to German retailer

Example 2a: A French retailer buys from a UK brand.

  • UK brand charges 0% VAT to Orderchamp NL entity
  • Orderchamp NL entity charges 0% reverse charge VAT to French retailer
  • The carrier (may) charge local import duties directly to French retailer

Buying from brands in the EU / Selling to retailers out of the EU

Scenario 1: a transaction between a non-EU retailer and an EU brand.

Example 1: A UK retailer buys from a Dutch brand. 

  • Dutch brand charges 0% reverse charge to Orderchamp DE entity
  • Orderchamp DE entity charges 0% VAT to UK retailer 
  • The carrier (may) charge local export duties directly to the UK retailer

Example 2: A UK retailer buys from a German brand. 

  • German brand charges 0% reverse charge to Orderchamp NL entity
  • Orderchamp NL entity charges 0% VAT to UK retailer 
  • The carrier (may) charge local export duties directly to the UK retailer

Example 3: A UK retailer buys from a French brand.

  • French brand charges 0% reverse charge to Orderchamp NL entity
  • Orderchamp NL entity charges 0% VAT to UK retailer 
  • The carrier (may) charge local export duties directly to the UK retailer
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