For VAT registered customers who purchase items from auction houses that are not operating under the Margin Scheme, invoices can be issued without local VAT on the auction house’s premiums and transport costs, provided certain requirements are met.
VAT only applies to the auction house’s premiums and the transport, which are both considered supplies of services. The place of supply for services to private individuals is always considered to be the country where the auction house is located. However, for VAT-registered companies, this service is considered to be supplied in the country where the buyer is located.
For purchases from auction houses operating under the Margin Scheme, please read more in the section What happens if an item is sold under the VAT Margin Scheme?
Requirements for companies within the EU
To be eligible for reverse charge VAT, you must be registered for VAT in your country and have a valid VAT number.
How to enter your VAT-number
When registering your customer account, you must enter your VAT number in international format with the country code (e.g. SE551234567801). Auctionet will then automatically validate your VAT number using the VIES database. If the VAT-number is successfully validated, your invoices will be automatically issued without local VAT, and your VAT number will appear on your invoice. The auction house will report this sale on their EC Sales List referencing your VAT-number.
Requirements for companies outside the EU
To be eligible for reverse charge VAT while registered outside the EU, you need to be VAT-registered in your country and provide the documentation to Auctionet.
How to provide your documentation and what it needs to contain
The documentation must prove that you are officially VAT-registered in your country. Acceptable documents include your official VAT or tax registration certificate or a similar document from your national tax authority. The document must be in Swedish, English, German or Spanish. The documentation must be sent to our Support department here, who will review it and, if approved, mark your customer number as VAT-exempt.