How does Orderchamp handle VAT?

Effective for new orders as of February 16th 2022 

Merchant of Record with multiple (VAT) entities

Orderchamp acts as Merchant of Record with entities in The Netherlands and Germany and a registration in Belgium with corresponding VAT numbers. Depending on the brand and retailer location from the order, the best suited Orderchamp entity/registration is selected by Orderchamp to handle VAT.

Current list of entities and registration with corresponding VAT numbers

Entity:
Orderchamp BV (NL)
Korte Leidsedwarsstraat 49A
1017 PW Amsterdam NL
Registration number (CoC): 72677872
VAT number (NL): NL859194437B01

Entity:
Orderchamp GmbH (DE)
Lohmühlenstraße 65
12435 Berlin
VAT number (DE): DE347600339

Registration:
BO Orderchamp BV (BE)
Korte Leidsedwarsstraat 49A
1017 PW Amsterdam BE
VAT number (BE): BE0747815659

Please note: we are expanding into new markets and therefore applying for registration in most European countries.

Coming soon: Orderchamp SAS (FR) and Orderchamp Ltd. (UK)

 

A few examples of how we handle VAT:

BE Brand
Order from Own country - invoiced through BE (with local 21% VAT)
Order from DE - invoiced through NL (with 0% reverse charged VAT)
Order from NL - invoiced through DE (with 0% reverse charged VAT)
Order from other - invoiced through NL (with 0% reverse charged VAT)

DE Brand
Order from Own country - invoiced through DE (with local 19% VAT)
Order from BE - invoiced through NL (with 0% reverse charged VAT)
Order from NL - invoiced through NL (with 0% reverse charged VAT)
Order from other - invoiced through NL (with 0% reverse charged VAT)

NL Brand
Order from Own country - invoiced through NL (with local 21% VAT)
Order from BE - invoiced through DE (with 0% reverse charged VAT)
Order from DE - invoiced through DE (with 0% reverse charged VAT)
Order from Other - invoiced through DE (with 0% reverse charged VAT)

Other EU Brand
Order from Own country - invoiced through NL (with local charged VAT)
Order from BE - invoiced through NL (with 0% reverse charged VAT)
Order from DE - invoiced through NL (with 0% reverse charged VAT)
Order from NL - invoiced through DE (with 0% reverse charged VAT)
Order from other - invoiced through NL (with 0% reverse charged VAT)

non-EU Brand
Order from Own country - invoiced through NL (with local charged VAT)
Order from BE - invoiced through NL (with 0% VAT)
Order from DE - invoiced through NL (with 0% VAT)
Order from NL - invoiced through DE (with 0% VAT)
Order from other - invoiced through NL (with 0% VAT)

When stock is not located where the brand is registered
We added a setting in your account's back-office to allow you to set up different shipping/warehouse addresses. If your stock is not sold from a location that you, as a brand, are registered in, then we kindly request you to notify us at support@orderchamp.com.
The main international rule of thumb regarding VAT is that VAT follows the shipment.
This means that not only the countries of registration of the selling and buying parties are concerned, but also the actual send and receiving addresses.

What is the VAT Reverse Charge (Shifted VAT)?
When you buy goods or services from suppliers in other EU countries, the Reverse Charge moves the responsibility for the recording of a VAT transaction from the seller to the buyer for that good or service. That way it eliminates or reduces the obligation for sellers to VAT register in the country where the supply is made. If the supplier incurs any local VAT on costs related to the service or goods supplied under the Reverse Charge, they may recover them through an EU VAT reclaim.
The Reverse Charge mechanism was created when the European Union Value Added Tax system was reformed for the launch of the single market in 1993, to help simplify the VAT reporting across the 27 member states.

See below some more of the most common VAT scenarios explained:

Brand

Retailer

Entity

Tax from supplier

Tax on commission

Tax to retailer

AT

AT

NL

20%

Shifted

Shifted

BE

AT

NL

Shifted

Shifted

Shifted

BE

BE

BE

21%

21%

21%

BE

DE

NL

Shifted

Shifted

Shifted

BE

FR

NL

Shifted

Shifted

Shifted

BE

NL

DE

Shifted

Shifted

Shifted

CH

CH

NL

8%

Shifted

Shifted

DE

BE

NL

Shifted

Shifted

Shifted

DE

DE

DE

19%

19%

19%

DE

NL

NL

Shifted

Shifted

21%

FR

FR

NL

20%

Shifted

Shifted

GB

GB

NL

20%

Shifted

Shifted

IT

AT

NL

Shifted

Shifted

Shifted

IT

BE

NL

Shifted

Shifted

Shifted

IT

DE

NL

Shifted

Shifted

Shifted

IT

FR

NL

Shifted

Shifted

Shifted

IT

GB

NL

Shifted

Shifted

0%

IT

IT

NL

22%

Shifted

Shifted

IT

NL

DE

Shifted

Shifted

Shifted

NL

AT

DE

Shifted

Shifted

Shifted

NL

BE

DE

Shifted

Shifted

Shifted

NL

CH

DE

Shifted

Shifted

0%

NL

DE

DE

Shifted

Shifted

19%

NL

FR

DE

Shifted

Shifted

Shifted

NL

GB

DE

Shifted

Shifted

0%

NL

NL

NL

21%

21%

21%

NO

NO

NL

25%

Shifted

Shifted

BE

BE (consumer)

BE

21%

21%

21%

BE

NL (consumer)

NL

Shifted

Shifted

21%

CH

CH (consumer)

NL

7.7%

Shifted

0%

DE

DE (consumer)

DE

19%

19%

19%

GB

GB (consumer)

NL

20%

Shifted

0%

IT

IT (consumer)

NL

22%

Shifted

21%

NL

CH (consumer)

DE

Shifted

Shifted

0%

NL

DE (consumer)

DE

Shifted

Shifted

19%

NL

DE (consumer)

DE

Shifted

Shifted

19%

NL

GB (consumer)

DE

Shifted

Shifted

0%

NL

NL (consumer)

NL

21%

21%

21%

NO

NO (consumer)

NL

25%

Shifted

0%

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