I can't apply for the Margin Scheme - what does this mean for me as a VAT registered seller?

For UK sellers

Laced acts as reseller in the sale between the seller and the buyer. This means that you are selling the item directly to Laced.

If you are a VAT taxable person and cannot apply the margin scheme, you must pay 20% VAT on your payout, unless the sold items are subject to a reduced VAT or zero VAT rate. For more information about VAT rates, please click here.

During the process, our team will create an invoice issued to Laced in your name and on your behalf. This invoice will include the VAT amount on your domestic supply of goods to Laced in the UK. You will need to pay and remit this VAT to the UK tax authorities through your own VAT return — Laced is not responsible for this and will not do this on your behalf.

We will only add output VAT to your final payout and invoices if you have provided a UK shipping address and a valid UK VAT identification number.

For example

You list an item for £100 excluding VAT.

After deducting our fees and shipping, you receive a payout of £78.01 excluding VAT.

You collect and pay 20% VAT on your payout (£15.60).

If you have provided a valid UK VAT number, we will send you £78.01 + £15.60 = £93.61 including VAT. You report this on your VAT return and pay £15.60 to the UK tax authorities.

For sellers from the Netherlands

Laced acts as reseller in the sale between the seller and the buyer. This means that you are selling the item directly to Laced.

If you are a VAT taxable person and cannot apply the margin scheme, you must pay 21% VAT on your payout, unless the sold items are subject to a reduced VAT or zero VAT rate. For more information about VAT rates, please click here.

During the process, our team will create an invoice issued to Laced in your name and on your behalf. This invoice will include the VAT amount on your domestic supply of goods to Laced in the Netherlands. You will need to pay and remit this VAT to the Dutch tax authorities through your own VAT return — Laced is not responsible for this and will not do this on your behalf.

We will only add output VAT to your final payout and invoices if you have provided a shipping address in the Netherlands and a valid Dutch VAT identification number.

For example

You list an item for €100 excluding VAT.

After deducting our fees and shipping, you receive a payout of €75.01 excluding VAT.

You collect and pay 21% VAT on your payout (€15.75).

If you have provided a valid Dutch VAT number, we will send you €75.01 + €15.75 = €90.76 including VAT.

You report this on your VAT return and pay €15.75 to Dutch tax authorities.

For sellers in the EU (outside of the Netherlands)

If you ship your items from an EU country outside of the Netherlands, your sale to Laced will be subject to 0% VAT in accordance with the Intra-EU supply based on article 138 of the EU VAT Directive.

During the process, we will account for VAT on this transaction in the Netherlands and will create an invoice issued to Laced in your name and on your behalf. This invoice will not include VAT, but will show a VAT zero-rated sale.

You must report this transaction to your local VAT return referencing Laced's VAT Dutch identification number. This VAT identification number will be referenced on the self-billing invoice that Laced will create in your name and on your behalf.