A deemed supplier is a business or online platform (like Amazon, eBay, Etsy, etc.) that the tax authorities treat as if they are the seller — even though they’re not the one actually selling the goods.

Basically, for VAT purposes, the tax office says:

“We will treat the platform (or sometimes the importer) as the seller who must charge and pay VAT.”

This is done to make VAT collection simpler and ensure that VAT is paid correctly on online sales — especially when goods come from outside the EU or when sellers are based outside the EU.

🧩 When does the “Deemed Supplier” rule apply?

You (or your client) might be or use a deemed supplier in these cases:

1️⃣ Sales through an online marketplace (like Amazon, eBay, etc.)

If:

• You sell goods to EU consumers (B2C) through a marketplace, and

• The marketplace facilitates the sale (they control listing, payment, delivery, etc.),

👉 Then the marketplace becomes the deemed supplier for VAT purposes — not you.

This means:

• The marketplace collects and pays the VAT to the tax office.

• You (the seller) make a zero-rated sale to the marketplace instead.

2️⃣ Goods imported from outside the EU

If:

• The goods are imported into the EU,

• Their value is below €150, and

• The sale is made through a marketplace,

👉 Then the marketplace is the deemed supplier and must handle the VAT via IOSS (Import One Stop Shop).

If you sell directly (not via a marketplace), then you remain responsible for charging and paying VAT.

✅ How to know if you or your client is eligible

You’re affected by the deemed supplier rules if:

1. You sell goods online to EU consumers (B2C),

2. You sell through an online marketplace, and

3. Either:

   • The goods are imported into the EU, or

   • You are a non-EU seller selling to EU consumers.

If all three apply → the marketplace (not you) is the deemed supplier.

🚫 When it doesn’t apply

You’re not under the deemed supplier rule if:

• You sell through your own website (not via a platform), or

• You sell B2B (to VAT-registered companies), or

• The goods are already in the EU and you are EU-based.

🧠 Example:

Let’s say:

• You’re a UK seller,

• You sell on Amazon to customers in Germany,

• The goods are shipped from the UK to Germany, and the value is under €150.

➡️ Amazon becomes the deemed supplier and must charge and pay German VAT.
➡️ You sell to Amazon without VAT.