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European buyer asking for VAT on invoice

I'm in the USA. I was sent this message regarding an item I am selling:

 

"Do you offer invoice with VAT specified? A customer company may want to purchase this and would like to deduct the VAT. As we are in Sweden, a VAT specified invoice is enough."

 

I'm in the Ebay International Shipping program. This is the first time I've been asked this. Do I need to do anything or does Ebay put "VAT specified" on their final invoice automagically? I'm not sure how to answer the potential buyer's question. 

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European buyer asking for VAT on invoice

@e-cyclers-of-idaho2021 

 

Not all of your listings offer shipping to Sweden, so you may need to edit the listing to allow them to purchase it.

 

As long as the listing allows shipping to Sweden, your buyer just needs to make the purchase on eBay USA, https://ebay.com, put the item into their shopping cart, then go to checkout. When they specify an address in Sweden, as long as they are on eBay USA, they will see the VAT specified on a separate line item, because that is how eBay USA displays sales tax. If they are on an eBay website in Europe, then the VAT is included in the sale price, because that is how it is supposed to be displayed in Europe. They aren't supposed to add it on at checkout.

 

The buyer will have to pay the VAT up-front, and then deal with the government to get it back. That is normally how VAT is handled, because it is a "Value Added Tax" and tax is charged every time it is sold, even at the wholesale/manufacturer stages, but then they are allowed to deduct the VAT that they paid from their VAT report when they submit the VAT they collect to the government. eBay can't participate in "Margin schemes" so they can't make exemptions or not charge the VAT up front when selling to a business.

 

lacemaker3_0-1706551608730.png

 

 

You can also send your buyer this information:  The buyer's invoice should be available through their purchase history page, or on the order details for the purchase.

 

https://export.ebay.com/en/fees-and-payments/taxes-and-accounting/vat-eu-2021/

 

... For transactions where eBay has collected VAT, eBay will issue an invoice to the buyers confirming the VAT amount charged and showing eBay’s IOSS number. If the buyer is asked to pay VAT again on import of the goods into the EU, please inform the buyer to check the invoice and share it with customs. You can also share the order details with the buyer where eBay’s IOSS number and the VAT amount collected by eBay will be visible.

 

 

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European buyer asking for VAT on invoice

Thank you for taking the time to answer so thoroughly!

 

Curious that I have some listings that prohibit shipping to Sweden. I'm not sure how I did that. Maybe they aren't specifically prohibited from Sweden but aren't permitted out of the country? Anyway, the item the potential buyer is asking me about is allowed to be shipped to Sweden. 

 

I'll let my buyer know about visiting the eBay USA site, to try checking out through there.

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