| Discussion Forum: Thread 355227 |
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| | | Author: | Lakeshore_BAM  | | Posted: | Mar 20, 2024 09:56 | | Subject: | Stripe Tax Registration Thresholds Exceeded | | Viewed: | 125 times | | Topic: | Taxes | |
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| Sorry for the lengthy post here, but I didn’t want to leave much out.
I'm based in the US, but I previously had my store set to sell to 21 countries.
I recently ran across something on Stripe relating to registering for tax collection
on some of my foreign orders that exceeded tax thresholds in 6 different EU countries
as well as Manitoba in Canada. I’m just curious if any of you Stripe sellers
have run across a similar thing.
On the BrickLink page about VAT instructions, it says "If your business on
BrickLink sells goods in any European Union country or Northern Ireland (“EU”),
you may be required to register for and collect Value Added Tax (VAT). Most EU
countries allow you to register for VAT online, through the local tax authority’s
website."
However, I am also aware of the following info from BrickLink:
For orders where the item total value is less than or equal to €150, BrickLink
will collect VAT from buyers on orders shipping into the EU that are dispatched
from outside the EU.
For orders over €150 imported to their EU Member State, the buyer will pay VAT
at delivery to customs/carrier.
I don’t think I need to set up tax registrations in the EU countries that I sell
to but not really sure about Manitoba since I don’t see what taxes were collected
on that order. I wasn’t sure if taxes were already sufficiently collected on
it. Do any other US or Stripe sellers have experience or insight in this matter
regarding the EU or Manitoba?
I contacted Stripe customer service and was told "After carefully checking
the information you provided me, I was able to see that your customers are already
paying VAT taxes. In this case, if you add a tax registration on your account,
it will charge taxes since it's from Stripe."
and
"If you are already managing taxes with another platform or with a third
party, it is recommended that you continue with them and do not activate Stripe's
taxes. It would charge double tax since they are separate entities."
and
"Since the VAT that your customers paid is being collected by BrickLink,
I recommend you to contact with them directly and share your query with them".
-- I actually did reach out to BrickLink 2 months ago for confirmation on
this matter but never heard back. That’s why I’m asking here in the forum 😊
Anyway, since BrickLink is collecting the VAT from buyers on orders where the
item total value is less than or equal to €150, and for orders over €150 imported
to their EU Member State, the buyer pays VAT at delivery to customs/carrier,
I just want to see if I actually need to do any registrations in those countries.
I’m pretty sure the answer is no based on the info I’ve collected, but it’s always
nice to check with others who have already managed a similar situation. As for
Manitoba, I’m unsure about if taxes were sufficiently collected on that order
and if I need to register for tax collection on the Stripe site.
I temporarily disabled int'l shipping just to be safe while I get this figured
out.
Thank you for reading my lengthy inquiry!
Michael
Lakeshore Bricks and More
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| | | | | Author: | peregrinator | | Posted: | Mar 20, 2024 11:41 | | Subject: | Re: Stripe Tax Registration Thresholds Exceeded | | Viewed: | 41 times | | Topic: | Taxes | |
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| In Taxes, Lakeshore_BAM writes:
| | On the BrickLink page about VAT instructions, it says "If your business on
BrickLink sells goods in any European Union country or Northern Ireland (“EU”),
you may be required to register for and collect Value Added Tax (VAT). Most EU
countries allow you to register for VAT online, through the local tax authority’s
website."
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I believe this is referring to EU businesses.
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| | | | | | | Author: | 1001bricks | | Posted: | Mar 20, 2024 13:53 | | Subject: | Re: Stripe Tax Registration Thresholds Exceeded | | Viewed: | 27 times | | Topic: | Taxes | |
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| In Taxes, peregrinator writes:
| | In Taxes, Lakeshore_BAM writes:
| | On the BrickLink page about VAT instructions, it says "If your business on
BrickLink sells goods in any European Union country or Northern Ireland (“EU”),
you may be required to register for and collect Value Added Tax (VAT). Most EU
countries allow you to register for VAT online, through the local tax authority’s
website."
|
I believe this is referring to EU businesses.
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Sure.
BrickLink automatically collects VAT on Import (ex: USA) to EU for orders of
less than 150€ - with some exceptions, like pros.
In all cases, if BrickLink doesn't collect it, you simply declare the value
(CN 23) and the buyer will have to pay locally for taxes.
In short, nothing which matters the USA (for ex) seller. You don't have to
register or do anything on your side.
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| | | | | | | | | Author: | Lakeshore_BAM | | Posted: | Mar 20, 2024 14:26 | | Subject: | Re: Stripe Tax Registration Thresholds Exceeded | | Viewed: | 21 times | | Topic: | Taxes | |
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| In Taxes, 1001bricks writes:
| | In Taxes, peregrinator writes:
| | In Taxes, Lakeshore_BAM writes:
| | On the BrickLink page about VAT instructions, it says "If your business on
BrickLink sells goods in any European Union country or Northern Ireland (“EU”),
you may be required to register for and collect Value Added Tax (VAT). Most EU
countries allow you to register for VAT online, through the local tax authority’s
website."
|
I believe this is referring to EU businesses.
|
Sure.
BrickLink automatically collects VAT on Import (ex: USA) to EU for orders of
less than 150€ - with some exceptions, like pros.
In all cases, if BrickLink doesn't collect it, you simply declare the value
(CN 23) and the buyer will have to pay locally for taxes.
In short, nothing which matters the USA (for ex) seller. You don't have to
register or do anything on your side.
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1001bricks, thanks for the confirmation on that! I think I'll open my store
back up to international + EU customers again pretty soon. I've never had
any issues with shipping overseas but just wanted to make sure I wasn't missing
anything from a tax collection standpoint. It's kind of fun shipping LEGO
around the world instead of just within the US.
I wonder if anyone has any insight/confirmation on if my order to Manitoba also
had all the appropriate taxes sufficiently collected (leaving nothing for me
to have do on my end from a tax collection + registration standpoint). I'd
assume so...
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| | | | | | | | | | | Author: | peregrinator | | Posted: | Mar 20, 2024 14:56 | | Subject: | Re: Stripe Tax Registration Thresholds Exceeded | | Viewed: | 27 times | | Topic: | Taxes | |
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| In Taxes, Lakeshore_BAM writes:
| | I wonder if anyone has any insight/confirmation on if my order to Manitoba also
had all the appropriate taxes sufficiently collected (leaving nothing for me
to have do on my end from a tax collection + registration standpoint). I'd
assume so...
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BL doesn't collect GST/HST/etc. for Canada. The buyer would have paid when
he or she received it, there's nothing at all you need to do about it.
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| | | | | | | | | | | | | Author: | Lakeshore_BAM | | Posted: | Mar 20, 2024 16:04 | | Subject: | Re: Stripe Tax Registration Thresholds Exceeded | | Viewed: | 35 times | | Topic: | Taxes | |
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| In Taxes, peregrinator writes:
| | In Taxes, Lakeshore_BAM writes:
| | I wonder if anyone has any insight/confirmation on if my order to Manitoba also
had all the appropriate taxes sufficiently collected (leaving nothing for me
to have do on my end from a tax collection + registration standpoint). I'd
assume so...
|
BL doesn't collect GST/HST/etc. for Canada. The buyer would have paid when
he or she received it, there's nothing at all you need to do about it.
|
Thanks for the info! I guess this whole thing about possibly exceeding tax thresholds
and having to register for tax collection in multiple countries had me scared
a bit when I first saw it written in red letter on my Stripe tax page a couple
months ago, but false alarm all along lol.
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| | | | | | | Author: | Lakeshore_BAM | | Posted: | Mar 20, 2024 14:20 | | Subject: | Re: Stripe Tax Registration Thresholds Exceeded | | Viewed: | 26 times | | Topic: | Taxes | |
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| In Taxes, peregrinator writes:
| | In Taxes, Lakeshore_BAM writes:
| | On the BrickLink page about VAT instructions, it says "If your business on
BrickLink sells goods in any European Union country or Northern Ireland (“EU”),
you may be required to register for and collect Value Added Tax (VAT). Most EU
countries allow you to register for VAT online, through the local tax authority’s
website."
|
I believe this is referring to EU businesses.
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Peregrinator, good catch on that wording. Thanks.
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USA, Michigan
France, Provence-Alpes-Côte d'Azur