The VAT correction for smart shipping depends on where you, as the professional seller, are based and where the buyer is located.

Professional sellers in the Netherlands

If you are a professional seller in the Netherlands, the Dutch VAT rate is compared with the VAT rate in the buyer’s country.

When the buyer’s country VAT rate is lower

For example, if a professional seller in the Netherlands sells to a buyer in Germany:

1. Dutch VAT rate: 21%
2. German VAT rate: 19%
3. Catawiki charges the buyer 19% VAT for shipping at checkout.
4. Catawiki deducts the remaining 2% VAT difference from the seller payout to meet tax obligations.
5. The seller can claim this 2% back from their local tax authorities.

When the buyer’s country VAT rate is higher

For example, if a professional seller in the Netherlands sells to a buyer in Denmark:

1. Dutch VAT rate: 21%
2. Danish VAT rate: 25%
3. Catawiki charges the buyer 25% VAT for shipping at checkout.
4. The seller needs to report 25% VAT to the local tax authorities.
5. Catawiki adds the extra 4% VAT difference to the seller payout.

Professional EU sellers outside the Netherlands

For professional EU sellers outside the Netherlands, reverse charge may apply to the smart shipping invoice.

For example, if a professional seller in Italy sells to a buyer in Germany:

1. The seller’s VAT treatment: reverse charge
2. German VAT rate charged to the buyer: 19%
3. Catawiki charges the buyer 19% VAT for shipping at checkout.
4. This is the VAT amount the seller would need to report to the tax authorities.
5. Catawiki adds this 19% VAT to the seller payout.