How does Orderchamp handle VAT?

Effective as of 1st February 2022

Merchant of Record with multiple (VAT) entities

Orderchamp acts as Merchant of Record and has an entity and/or registration in The Netherlands, Germany and Belgium with corresponding VAT numbers. Soon we will also have entities with corresponding VAT numbers in France (Orderchamp SAS), and The United Kingdom (Orderchamp Ltd.). Depending on the brand and retailer location from the order, the best suited Orderchamp registration/entity is selected by Orderchamp to handle VAT. 

Current list of entities and/or registrations with corresponding VAT number:

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

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

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

Coming soon: Orderchamp SAS (FR) and Orderchamp Ltd. (UK)
See below some of the most common VAT scenarios explained:

Retailer Brand Entity Tax to retailer Tax to supplier Tax on commission
Retailer Brand Entity Tax to retailer Tax from supplier Tax on commission
NL NL NL 21% 21% 21%
NL BE DE Shifted Shifted Shifted
NL DE BE Shifted Shifted Shifted
NL IT DE 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 BE Shifted Shifted Shifted
DE BE NL Shifted Shifted Shifted
DE IT NL Shifted Shifted Shifted
IT IT NL Shifted 22% Shifted
FR IT NL Shifted 22% Shifted
CH NL DE 0% Shifted Shifted
GB NL DE 0% Shifted Shifted
GB IT NL 0% Shifted Shifted
GB GB NL Shifted 20% Shifted
CH CH NL Shifted 7.70% Shifted
NO NO NL Shifted 25% Shifted
NL (consumer) NL NL 21% 21% 21%
BE (consumer) BE BE 21% 21% 21%
DE (consumer) DE DE 19% 19% 19%
IT (consumer) IT NL 21% 22% Shifted
NL (consumer) BE DE Shifted Shifted Shifted
GB (consumer) GB NL 0% 20% 0%
NO (consumer) NO NL 0% 25% 0%
CH (consumer) CH NL 0% 7.70% 0%
DE (consumer) NL BE 21% Shifted Shifted
CH (consumer) NL DE 0% Shifted Shifted
GB (consumer) NL DE 0% Shifted 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

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.

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