
Everything Discogs Knows About Buyers Being Charged VAT Twice
Discogs is aware that some buyers in the European Union are being charged VAT twice. First, the tax is collected by Discogs when you purchase an item, and second, a postal service provider collects it again when that item is imported.
This double-charged VAT issue is occurring despite sellers following tax guidelines and communicating Discogs’ IOSS number to postal service providers as required. The situation is not unique to Discogs and there is evidence of double taxation occurring on other e-commerce platforms.
In response to this issue in the European Union, the EU Commission is currently considering a temporary solution to provide a remedy for buyers suffering from double-charged VAT.
Discogs will provide updates as new information becomes available, but here’s what we know so far.
What is happening with the double VAT situation?
The EU Commission, a governing branch of the European Union, has acknowledged that cases of double taxation are an issue. They have also acknowledged that the likely causes are postal service operators’ inability to transmit required IOSS numbers electronically and some Member States not being in a position to validate the IOSS number in a full customs declaration.
The EU Commission has proposed a temporary solution, but that solution has not been finalized as of this writing. This means no information is currently available at this time to allow Discogs to provide buyers relief from this double VAT taxation.
We are closely monitoring the EU Commission’s progress on this double VAT issue and, if possible, will implement a solution once all requirements are known. However, until the EU signs the proposal into law, Discogs is unable to offer a refund for double-charged VAT.
What should I do for now?
Discogs recommend that you contact your local VAT or customs office to register your issue and that you keep evidence of any VAT paid at delivery if you already paid VAT at purchase. This documentation could include a statement or invoice from the postal service provider showing that the VAT was paid on delivery along with a copy of the receipt for your purchase made via our platform.
If you live in the UK and believe you have been charged too much VAT please refer to the UK government guidance on how to ask for a refund of VAT.
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