DISTANCE SELLING TO THE GERMAN MARKET

With a steady growth forecast, Amazon & eCommerce is gaining importance day by day for productselling companies. A progressive trend of customers buying online makes it attractive for companies to offer and sell online. With more and more businesses selling online nowadays, it is important to bear in mind the rules that govern in terms of distance selling.

Distance selling means that a supplier sells goods or services to private individuals or customers established in another EU-Member State who do not apply VAT to their intracommunity acquisitions of goods. The supplier takes care of the transport of the goods to the customers. In Germany, typical examples are mail order companies like Amazon or Zalando. Companies from e.g. the UK are selling products or services to consumers on these platforms without face-to-face contact, and where the consumer does not get an opportunity to examine the goods before buying or discuss the service in person.

Due to the fact that in the past the number of traders has multiplied, and the volume of distance selling has increased dramatically, the EU became stricter and has tightened the rules for private traders and especially for selling companies. One aim of the regulations is on the one hand to ensure a minimum level of consumer protection across the European Union and on the other hand to ensure VAT submissions to the government.

Compliance with distance selling regulations needs to be taken seriously as it is a legal requirement. Enforcement action can be taken in the courts against businesses that breach these regulations. Please refer to our partner Counselhouse for legal advise.

As a selling company you are required to display at least a minimum of information about the goods or services you are providing on internet platforms including:

• a description of the goods or services
• the price of the goods or services
• delivery and any cancellation rights
• full information about the seller

Consultinghouse provides the compliance platform required to successfully operate and grow your business in Germany.