Exampt TAX

[LolasstoreBE]

Exempt VAT 

I am Belgium and have an exemption from VAT . 

I get a mail from Etsy that I have to fill in my details completely .

Including my VAT .

But I am exempt and may not actually pass through another partner . 

Does anyone also have this problem as me and what did you do .

Please help as soon as possible because in 10 days they will put my shop in pause . 

[ArtDollsbyJD]

Are you registered VAT exempt?  Perhaps you can send this in to Etsy? 

[LolasstoreBE]

Thank you very much for your reply , I sent a chat and email to Etsy and they replied that I have to fill in VAT ID actually they did not understand or they do not know themselves , with that I asked who experienced the same thing.

[FancyTogs · Accepted solution]

How are you "exempt" ?

Sellers are not exempt, but some classes of good and services are exempt, or have special rules (eg. Margin Scheme for used goods).

One of 2 things may be happening:

• Etsy may actually be requesting a VAT registration number. They are now required by EU & UK laws to collect VAT registrations of sellers if the seller's sales are over the VAT threshold. They add up the amount sold within a calendar year and compare it to the national VAT registration threshold to decide if a seller should be VAT registered. The trigger for messages to start appears to be sales over about 50% of the seller's national VAT threshold. Etsy are simple folk, they don't understand taxes, or accounting, or business registrations. I doubt that they will be correctly classifying the VAT for different types of goods, or locations, so their calculations will be inaccurate. I am also often reminded on the forum that many sellers don't understand VAT either, it is complex.

• Etsy are also required by EU & UK laws to collect income tax ID and / or business registration numbers of sellers. Etsy frequently mix up the concept and words for VAT registration with income tax registration or business registration. The income tax ID or business registration will need to be entered in the "Additional Taxpayer ID" area of the Legal & Tax Information page, below the Primary Taxpayer ID. There is a dropdown for countries which lists "Belgium (NN)", that you will be required to provide.

Lawrence (Clare's other half)

[HaberdasheryProject]

@LolasstoreBE 

I received this notice a while back ago…..try your personal tax id number. In my case, that worked.

@FancyTogs 

I can not speak to every country but I can say this, here in Germany there is a small business law ( when total earnings stay under a certain amount and don’t exceed “projected “ amounts for the following year) are exempt from charging VAT to customers. 

This is up to each small business and of course it can be opted out of, if chosen. Once opted out, a business can’t roll that back.

From what was written, I am guessing that Belgium has a similar system.

[LolasstoreBE]

Thank you for clear information

[CraftyCornishMaids · Accepted solution]

@LolasstoreBE 

If you are well below the threshold for registering for VAT in Belgium, then you do still have to enter a tax ID

scroll down to ........ ADDITIONAL tax payer id

click - add taxpayer ID
click the down arrow, choose - Belgium (NN) and add your NN number there (numéro de registre national/rijksregisternummer)

[LolasstoreBE]

Thank you very much for your help !! I will do it how you said .

Many Thanks lola

[JulesLouiseDesigns]

Hi Lola, 

I'm new to Etsy, also from Belgium. Did things work out after you adjusted the info? 

I am also exempt (vrijstelling BTW onder de 25000 euro) but I see it charges 21% BTW in my prices. Does that happen with you as well? Did you get it fixed?

Greeting/groetjes,

Tine

[FancyTogs]

@JulesLouiseDesigns 

"but I see it charges 21% BTW in my prices."

For instant downloads online marketplaces (eg. Etsy) are required to collect VAT from the buyer:

https://help.etsy.com/hc/en-gb/articles/115015587567-How-VAT-Works-on-Digital-Items?segment=selling

Lawrence

[LolasstoreBE]

Beste juleslouiseDesign , 

Sorry voor de late reactie , ja het heeft mij geholpen het is nu inorde .

Ik heb nog een vraag heb jij een boekhouder in belgie en is die goed want ik zoek een boekhouder die goed is en aanneemt als bijberoep . Kun je laten weten . Dank u wel lola 

[RueDeLouvain]

Don't give them a VAT or KBO/Numéro d'entreprise, but your personal Rijksregisternummer/Numéro de Régistre National.

In Belgium you must have a VAT/KBO nr (same number) but until you reach the threshold (€25000 currently) you do not have to charge VAT to your customers. It follows that you also can not reclaim VAT from your suppliers. Your suppliers must charge you VAT as if you were a private person, therefore I never give them my VAT/KBO number, it is illegal.  I tried to explain how it works to Etsy support a long time ago but they can not understand or deal with this in their administration. 

It works fine though with your personal tax number. They'll charge you the VAT on the monthly invoices as normal.