Deemed Supplier
Category: platform
Under EU VAT rules, a marketplace that is treated as the supplier for VAT purposes.
A deemed supplier is a platform or marketplace that is treated as if it were the seller for VAT or GST purposes, making it responsible for collecting and remitting the tax. In the EU, marketplaces are treated as deemed suppliers for VAT on B2C sales of imported goods valued at or below €150 and on domestic sales by non-EU sellers. This concept shifts tax liability from the actual seller to the platform.
Examples
- • When a Chinese seller ships a €100 item to a French consumer via Amazon, Amazon is the deemed supplier and collects 20% French VAT.
- • Under EU VAT rules effective July 2021, marketplaces facilitating domestic sales by non-EU sellers are treated as deemed suppliers.
- • The deemed supplier rule means sellers may not need to register for VAT individually in each EU country when selling through qualifying marketplaces.