How does Orderchamp handle VAT?

Effective for new orders as of September 30th, 2022 

Merchant of Record with multiple (VAT) entities and VAT registrations

Orderchamp acts as Merchant of Record with entities in The Netherlands and Germany and registrations in Belgium, Austria, and Denmark with corresponding VAT numbers.

Orderchamp is a party in the invoicing flow and raises the self-billing invoice on behalf of the Supplier and the subsequent invoice to the Retailer. Orderchamp is the customer of the Brand and the Retailer is the customer of Orderchamp.

Depending on the location of the Brand and Retailer for each specific order, a different Orderchamp entity (or VAT registration) is responsible for servicing the order, issuing invoices and handling VAT in the compliant way.

Current list of entities and registration with corresponding VAT numbers

Entity:
Orderchamp B.V. (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

Registrations:
BO Orderchamp B.V. (BE)
Korte Leidsedwarsstraat 49A
1017 PW Amsterdam BE
VAT number (BE): BE0747815659

ORDERCHAMP B.V. (DK)
Korte Leidsedwarsstraat 49A
1017 PW Amsterdam NL
Christian X's Vej 22
6100 Haderslev DK
VAT number (DK): DK13259151

ORDERCHAMP B.V. (AT)
Korte Leidsedwarsstraat 49A
1017 PW Amsterdam NL
z.H. Mag. Otti Renate Maria
Josefsgasse 7
VAT number (AT): ATU78163256

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

Coming soon: Orderchamp SAS (FR)

 

A few examples of how we handle VAT:

BE/DK/AT Brand
Order from Own country - invoiced through BE/DK/AT (with local 21% / 25% / 20% 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 dispatch and receipt addresses. That also means that most probably will also have to obtain a valid VAT number in every country from which you dispatch the products. If that country happens to be outside of the EU, you will have to obtain the VAT number in the EU country in which the products arrive first.

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:

Retailer

Brand

Entity

Tax to retailer

Tax from supplier

Tax on commission

AT

AT

AT

20%

20%

20%

AT

NL

DE

Shifted

Shifted

Shifted

AT

BE

NL

Shifted

Shifted

Shifted

AT

IT

NL

Shifted

Shifted

Shifted

BE

BE

BE

21%

21%

21%

BE

NL

DE

Shifted

Shifted

Shifted

BE

DE

NL

Shifted

Shifted

Shifted

BE

IT

NL

Shifted

Shifted

Shifted

DE

DE

DE

19%

19%

19%

DE

NL

DE

19%

Shifted

Shifted

DE

BE

NL

Shifted

Shifted

Shifted

DE

IT

NL

Shifted

Shifted

Shifted

FR

FR

NL

Shifted

20%

Shifted

FR

NL

DE

Shifted

Shifted

Shifted

FR

BE

NL

Shifted

Shifted

Shifted

FR

IT

NL

Shifted

Shifted

Shifted

IT

IT

NL

Shifted

22%

Shifted

NL

NL

NL

21%

21%

21%

NL

BE

DE

Shifted

Shifted

Shifted

NL

DE

NL

21%

Shifted

Shifted

NL

IT

DE

Shifted

Shifted

Shifted

AT (consumer)

DE

AT

20%

Shifted

Shifted

NL (consumer)

NL

NL

21%

21%

21%

BE (consumer)

BE

BE

21%

21%

21%

DE (consumer)

DE

DE

19%

19%

19%

NL (consumer)

BE

NL

21%

Shifted

Shifted

DE (consumer)

NL

DE

19%

Shifted

Shifted

DE (consumer)

NL

DE

19%

Shifted

Shifted

 

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