AliExpress: European Warehouse & VAT : CCM

Réponse 1 / 4

contrariness Posted messages 338 Registration date Status Membre Last intervention 6 240

To avoid paying VAT on a purchase from a European (Spanish) supplier, you must be VAT registered and have a VAT identification number.
In this case, you provide this number to the seller, and they invoice you excluding tax.

Unless they have a specific format for their "export" invoices, the invoice should include a line for VAT at 0%...(and their VAT identification number, because to sell excluding tax, the supplier must also have this number).

If you buy excluding tax and you are VAT registered, you need to declare your international purchases and pay VAT on them, but as a VAT-registered professional, you will recover it, so it balances out.

If you are not VAT registered, you pay all taxes included from the seller's country without the possibility of recovering anything.

slash031 Posted messages 18 Status Membre

Hello

Thank you for your detailed response.

I am indeed subject to VAT and have a VAT number that my supplier has offered to provide.

However, the invoice from my supplier does not include a VAT number. It only shows:
- the name of their company
- the address of their company (in China)
- the products + quantity + price (without mention of excluding tax)
- the total price (without mention of excluding tax)

Is this invoice acceptable for accounting purposes?

I purchase excluding tax. Since I sell including tax, I remit the collected VAT to the state.

But can I still purchase directly excluding tax?

Réponse 2 / 4

contrariness Posted messages 338 Registration date Status Membre Last intervention 6 240

For me, there’s a problem...

Two things you need to know:
Whether the product has been cleared through customs and whether VAT has been paid upon importation. These are not necessarily things that can be found on the invoice, but you can ask for them.

If the seller is a foreigner, there are several scenarios because they may very well have an agreement with the French tax administration to import and pay taxes from the country of origin, or pay in Europe depending on the country where they sell...

Moreover, to sell a manufactured product in Europe, certain standards must be met (very strict if it concerns products related to health such as cosmetics, for example.)
https://www.economie.gouv.fr/dgccrf/Publications/Vie-pratique/Fiches-pratiques/Le-marquage-CE

If you buy from an Asian seller, you must have a customs document, if you buy from a European seller, you must have their intra-community VAT number.

Without one of these documents, there is a problem on the seller's part.

Réponse 3 / 4

contrariness Posted messages 338 Registration date Status Membre Last intervention 6 240

You do not lose anything on your margin if your supplier invoices excluding tax. And without any indication of VAT, it can be considered as excluding tax...

The CE marking does not necessarily mean European Community; it can also mean China Export!!

In theory, you should ensure the origin of the products you sell (in relation to your buyer, you are the sole responsible party)

As for the invoice, if that is all you have... and your supplier refuses to give you further explanations, I don’t see what you can do except stop buying from them... You will have to make do with the document...

In case of an inspection, if the supplier is not European, you will be asked to prove that import taxes have been paid...

You mention professional expenses... is it a product you buy to resell, to use yourself, or to transform?

slash031 Posted messages 18 Status Membre

Hello

Let's not get sidetracked on the CE, it's a product I've been reselling for 2 years and it's widely used in France. The subject doesn't concern this detail.

I am an e-commerce retailer, I do buy-resell.

The supplier is Chinese, and their warehouse that supplies me is in Spain.

I purchase products (excluding tax) from them and sell them to my customers (including tax, of course).

My question remains: Is this invoice acceptable for accounting purposes? To be considered as a business expense?

contrariness Posted messages 338 Registration date Status Membre Last intervention 6 240 > slash031 Posted messages 18 Status Membre

This can't be professional expenses since you are reselling, it's therefore a purchase invoice.

You can of course pass the accounting document, since it is the only proof you have of the transfer of ownership of the goods...

I assume you are paying in Euros into an account in Spain?

slash031 Posted messages 18 Status Membre > contrariness Posted messages 338 Registration date Status Membre Last intervention

Not in dollars via PayPal.

contrariness Posted messages 338 Registration date Status Membre Last intervention 6 240 > slash031 Posted messages 18 Status Membre

So for me, your accounting document can be processed in accounting (for its conversion into Euros with the Paypal information)
The only unknown being whether customs duties and VAT have been paid or if you are delivered from a bonded warehouse with the declarations at your expense....

Réponse 4 / 4

slash031 Posted messages 18 Status Membre

Hello again

Thank you for your response

The products have the CE mark.

The supplier refuses to add any information to the invoice or to provide me with any other documents.
I cannot change because this is the manufacturer and the only supplier.
Too bad for the VAT; I know I lose 20% on my margin, but I have no choice.

My only real question is: Is this invoice acceptable for accounting purposes? To be considered a professional expense?

AliExpress: European Warehouse & VAT

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