- Auction Fees & VAT
- Payment Settings
- Payment Status
- Invoices & Receipts
- Payment Issues
Auction Fees & VAT
Q1: Is a VAT registration number necessary for selling items on the ULTIMZ platform?
A: No, it’s not a strict requirement. Both professional sellers and private sellers have the opportunity to list and sell items on the ULTIMZ platform. Generally, if you engage in the sale of goods or services as part of your business activities, VAT registration is mandated. However, certain countries may offer exemptions or relief for small-scale entrepreneurs. To determine the specific regulations that apply to your situation, it’s recommended that you consult with a tax advisor.
It’s important to note that sellers bear the responsibility for adhering to their own tax and legal obligations. If you are interested in registering as a professional seller but lack a valid VAT identification number, ULTIMZ may request alternative evidence demonstrating that you are using ULTIMZ to sell lots in conjunction with your business activities. This flexibility accommodates those who may not possess a VAT number but are actively engaged in trade or business on the platform.
Q2: What are the charges associated with commissions for sellers?
A: The commission fee for sellers amounts to 10% of the winning bid, and this fee excludes VAT (Value Added Tax). VAT is solely applicable to the commission costs. Here’s how VAT rates are applied:
- For sellers who are based within the European Union (EU), the VAT calculation is determined by the specific VAT rate of their respective country.
- For sellers who are not situated within the EU, the Dutch VAT rate of 21% is utilized.
Professional sellers who are EU residents have the option to avail themselves of the VAT exemption scheme, which offers a tailored approach to their VAT obligations.
Q3: When are auction fees due for payment?
A: In cases where the reserve price for a lot is not met during the auction, resulting in the lot remaining unsold, there are no fees incurred for you as the seller. In such instances, you have the option to re-list the lot with a reduced minimum price without incurring any costs.
Q4: When is VAT applied?
A: In the European Union (EU), VAT is applicable to the provision of goods and services by entrepreneurs and businesses, unless specific exceptions are relevant. According to Dutch VAT regulations, ULTIMZ is obligated to levy VAT on the commission fees imposed on sellers within the EU, unless the seller is a professional seller with a business address located outside of the Netherlands.
Q5: One Stop Shop (OSS) Option for EU Sellers
A: For sellers conducting frequent transactions across various EU countries, the One Stop Shop (OSS) can be a beneficial option.
- Regular Sales and VAT: If you’re involved in consistent sales, you might be considered a VAT taxable entity, necessitating VAT on your sales. For business-to-consumer (B2C) EU distance sales spanning multiple EU countries, the OSS allows you to consolidate VAT returns into one for streamlined management. Note that the OSS does not cover excise goods, and VAT distance sale rules do not apply if you utilize the margin scheme for specific categories such as used goods, arts, antiques, and collector objects.
- OSS Application: To apply the OSS, you need to register for VAT purposes in each country where you make taxable supplies. This option helps simplify your VAT obligations.
Q6: VAT Registration and Implications
A: Understanding the distinctions in VAT registration and its implications is vital.
- EU Sellers: VAT registration is required in the EU country where you sell VAT taxable items. Alternatively, you can leverage the OSS if eligible.
- UK Sellers: For businesses operating in the UK, VAT registration is mandatory. Refer to HMRC for registration details.
Q7: Taking Action for VAT Compliance
A: To ensure compliance with VAT obligations, consider these steps:
- Business in the EU: If your business operates within the EU, ascertain the VAT registration requirements for the countries you engage with. If eligible, explore the OSS option. Consult your local tax office for precise registration instructions.
- Business in the UK: For businesses operating in the UK, VAT registration is necessary. Refer to HMRC for registration details.
- Switching to Professional Account: If transitioning from a private to a professional sales account, provide your UK VAT registration number to firstname.lastname@example.org.
- Responding to Requests: If you receive an email requesting VAT registration information, promptly reply with the necessary details.
- Private Sellers and VAT: Even if you are a private seller, registering for VAT might be necessary if your sales are frequent. The criteria vary by country, so ensure compliance with local VAT obligations.
Q8: ULTIMZ’s VAT Information Request
A: ULTIMZ may request your VAT information for compliance purposes.
- Why Provide VAT Information: As an online marketplace, ULTIMZ must gather tax-related details as per local tax laws. This information aids in evaluating the VAT impact of our services.
- VAT Application Timing: All sellers, whether professional or private, are subject to VAT based on local tax law stipulations. If liable for VAT, you must register and provide necessary VAT information. If you conduct activities in multiple EU countries, you may require multiple VAT registrations or OSS application.
Q9: Ensuring Compliance and Avoiding Consequences
A: Failure to adhere to VAT rules may have consequences for your account:
- Account Actions: If ULTIMZ finds grounds to believe that VAT obligations are not met or valid company information and VAT numbers are not provided, your account may face actions like selling restrictions, removal of auctioned items, suspension, or termination.
Embrace a clear understanding of EU VAT regulations to navigate your professional selling journey on ULTIMZ seamlessly.
Q10: Discrepancies in VAT on Shipping Invoices Explained
A: It’s not uncommon to notice variations between the VAT amounts on your shipping invoice and the VAT you charge the buyer. However, rest assured that these differences, while present, won’t impact your VAT payment, as ULTIMZ ensures correction during the payment process.
Q11: VAT Considerations for Smart Shipping
A: As a professional seller utilizing smart shipping, the VAT discrepancy arises due to the setup of this service, but the ultimate effect on your VAT payment remains unaffected.
- Invoicing Structure: You, the seller, receive an invoice for the cost of smart shipping. Nevertheless, it is the buyer who pays for the shipping, and ULTIMZ handles the payment to the shipping company. This arrangement allows us to extend smart shipping as a service to you, and in turn, you serve the buyer by facilitating the shipping service.
- VAT Variances: Given the distinct stages in this ‘transaction,’ VAT differences can emerge, contingent upon the VAT regulations in both your country and the buyer’s country.
Q12: Correction of VAT Differences
A: To ensure your VAT payment remains accurate, ULTIMZ undertakes corrective measures:
- VAT Payment: We ensure that the appropriate VAT amount you need to report and remit to tax authorities is reconciled. This safeguards your VAT compliance.
- Withheld VAT: In some instances, where applicable, we may withhold a VAT amount. However, you can seek a refund for this withheld VAT from your local tax authorities.
Examples for Different VAT Scenarios:
- Professional Sellers in the Netherlands
- Lower Buyer Country VAT: If a Dutch professional seller (VAT: 21%) sells to a German buyer (VAT: 19%), the buyer is charged 19% VAT for shipping. We’ll deduct the remaining 2% from the payment to the seller to meet tax obligations. The seller can then claim this 2% back from their local tax authorities.
- Higher Buyer Country VAT: If a Dutch professional seller (VAT: 21%) sells to a Danish buyer (VAT: 25%), the buyer is charged 25% VAT for shipping. The seller would need to report 25% VAT to local tax authorities, so we add this extra 4% to the payment.
- Professional EU Sellers (Excluding the Netherlands)
- VAT Reverse Charge Scenario: If an Italian professional seller (VAT: reverse charge) sells to a German buyer (VAT: 19%), the buyer is charged 19% VAT for shipping. This aligns with the amount the seller must report to tax authorities. Consequently, this 19% is added to the payment made to the seller.
In summary, the disparities in VAT on shipping invoices and buyer-charged VAT are a result of the intricacies of the smart shipping service and VAT regulations. ULTIMZ’s commitment to rectifying these differences ensures that your VAT payment remains accurate and compliant with tax laws.
Q1: How Can I Change My Bank Details?
A: If you need to update your bank details for payments on ULTIMZ, follow these steps:
- Sign In: Ensure you’re signed in to your ULTIMZ account using your login credentials.
- Access Settings: Navigate to the ‘Settings’ section, typically located in the upper-right corner of the page.
- Payment Settings: Within ‘Settings,’ find the ‘Payment’ option and click on it to access payment-related settings.
- Update Bank Details: In the ‘Payment’ section, you’ll find the option to edit your bank details. Enter the accurate information for the changes.
It’s crucial to provide correct bank details to facilitate smooth payment transfers. Double-check the information before confirming any changes.
Please note that your funds can be transferred successfully only when your bank details are entered correctly. Ensure accuracy to avoid any payment issues.
Q2: How to Upload an ID Document: Your Complete Guide
A: If you’re required to upload your ID document to your ULTIMZ account, here’s a step-by-step guide:
- Check Email and Account: Keep an eye on your email and ULTIMZ account for a request to upload your ID document.
- Accepted ID Documents: ULTIMZ uses Stripe, a trusted payment processor, which accepts specific ID documents depending on your location:
- For most countries where ULTIMZ operates: passport, government-issued ID, or driver’s license.
- In Japan: passport, Juki card (with photo), driver’s license, foreign nationals residence card, health insurance card with certificate of residence, or national pension notebook are accepted.
- Ensure Accuracy: Make sure the information on your ID document matches the details in your ULTIMZ account. This includes your name(s), surname, and date of birth. Professional sellers should also ensure the company name matches their ULTIMZ account.
- Prepare Your ID Copy: Create a color copy of both the front and back sides of your ID card. Ensure the copy is clear, with the entire document visible and no hidden information.
- Preferred File Formats: To simplify the process, save your ID copy as a PDF or JPG file.
- Document Security: After ULTIMZ processes your submission, rest assured that copies of your ID will be promptly deleted for your privacy and security.
By following these steps, you’ll smoothly complete the process of uploading your ID document to your ULTIMZ account, ensuring a secure and compliant platform for all users.
Q1: Claim Resolved: When Will I Receive My Payment?
A: After a claim has been successfully resolved, here’s when you can expect your payment:
- Resolved Claims Check: Firstly, ensure that there are no outstanding or unresolved claims associated with the lot in question.
- Payment Schedule: If there are no lingering claim issues, your payment for the lot will be processed on the upcoming Wednesday. This occurs as long as the status of the lot has been updated to ‘shipped’ or ‘picked up’ within the stipulated timeframe.
Your payment process follows this timeline, allowing for smooth transactions and timely payouts.
Q2: Sold a Vehicle on ULTIMZ: When Can You Expect Payment?
A: Congratulations on selling a vehicle on ULTIMZ! Here’s when you can expect to receive your payment:
- Payment Timeline: You can expect your payment 14 days after the buyer or the shipping company has successfully picked up the car or motorcycle you sold.
- Consider Potential Variations: Note that the payment timeline may vary in certain situations. If any issues arise with the vehicle or the shipping process, the payment schedule might be affected. For example, delays in shipping could postpone your payment until the vehicle reaches its destination.
As you navigate the process of selling vehicles on ULTIMZ, keep in mind the standard payment timeline and the potential for variations based on specific circumstances. Our goal is to ensure smooth transactions for both buyers and sellers.
Q3: When Will I Receive Payment for My Sold Object?
A: Waiting for payment after selling an object? Here’s when you can expect it:
- Buyer’s Payment Received: Once the buyer’s payment has been successfully received, you’ll be notified. You then have 3 working days to prepare the order for shipping or pickup.
- Payment Frequency and Settings: Your payment schedule depends on whether the order has been shipped or picked up, as well as the payment frequency you’ve selected in your ‘Settings’ under ‘Payment.’ You can choose from these payment frequencies:
- Every day
- Once a week (on Wednesdays)
- Every two weeks (first and third Wednesday of the month)
- Once a month (first Wednesday of the month)
For Shipped Orders:
- After shipping the order, update the status to ‘Shipped.’
- When the provided tracking number indicates successful delivery and the buyer confirms receipt (within 3 days), your payment will be scheduled on the 4th day, based on your chosen payment frequency.
For Picked Up Orders:
- After the buyer picks up the order, update the status to ‘Picked up.’
- A 14-day period begins from the day you update the status, and your exact payment date within this period depends on your chosen payment frequency.
Tracking Your Payment: You can review or modify your payment frequencies while logged into your account. Watch for your expected payment date in the payment confirmation email sent by ULTIMZ. Payments are processed on working days, not weekends.
Claims and Payment: If a claim has been initiated, your payment may be withheld until the issue is resolved. ULTIMZ is available to assist with mediation if needed.
Stay informed and aligned with these payment processes to ensure a smooth transaction experience as a seller on ULTIMZ.
Invoices & Receipts
Q1: What sets apart a receipt from an invoice?
A: The distinction between receipts and invoices is important to understand:
- Invoices: Invoices are associated with the payment of seller or buyer commission fees. They serve as formal documentation for these fees, facilitating transactions.
- Receipts: Receipts, on the other hand, document the specifics of the transaction between the buyer and the seller. They offer a record of the purchase or sale details.
Determining VAT for Sellers:
- Professional Sellers’ VAT Treatment: If you’re a professional seller, determining the VAT treatment for your sales is your responsibility. Due to the complexity of VAT rules, ULTIMZ cannot ascertain the VAT treatment for every sale. For assistance, consult a tax advisor, accountant, or local tax authority. For sales to the UK or EU, where ULTIMZ is the deemed supplier, VAT is collected from the buyer during checkout.
- No Longer Indicating ‘Used’ or ‘New’: Before July 2018, sellers were required to specify whether an object was new or used for proper VAT invoicing. With the change in our invoicing process, this information is no longer needed.
Sellers’ Receipts and VAT:
- Receipts for Sellers: ULTIMZ sends a receipt directly to the buyer. Sellers also receive a receipt for each object they sell. All this transaction information is accessible in the seller’s ULTIMZ account.
- VAT on Receipts: In most cases, receipts encompass final bid prices and shipping costs. VAT is only indicated on applicable orders, where legal requirements mandate VAT collection on these aspects.
VAT Invoices for Sellers:
- EU Professional Sellers: For EU professional sellers located outside the Netherlands, a ‘reverse charge’ mechanism applies. This results in a commission invoice for the 12.5% seller commission without VAT, with the ‘reverse charge’ explicitly stated.
- Non-EU Sellers: Private or professional sellers outside the EU also receive a commission invoice for the 12.5% seller commission without VAT.
- EU Private Sellers or Buyers: Invoices provided to EU private sellers or buyers include VAT.
Distinguishing between these financial documents helps sellers navigate the intricacies of transactions on ULTIMZ’s platform.
Q1: What if a Buyer Doesn’t Make Payment?
A: When a buyer doesn’t fulfill their payment obligation, ULTIMZ handles the situation as follows:
- Payment Deadline: Buyers are expected to make their payment within 3 days after the auction concludes.
- Payment Reminders: If the buyer fails to pay within this 3-day window, our system initiates multiple payment reminders through email.
- Consequences for the Buyer: Should the buyer still not make the payment after receiving reminders, their ability to place bids on ULTIMZ will be temporarily blocked, and the sale will be canceled.
Seller Convenience – Re-Offering Lots:
- To minimize disruption for sellers, ULTIMZ automatically re-offers the unpaid lot for auction unless you decide otherwise.
- Re-offering involves copying, resubmitting, and approving the lot for the next auction, scheduled by the expert.
- Historically, re-offering has proven effective, with around 70% of re-offered lots finding buyers in the subsequent auction.
Seller’s Choice – Re-Offering or Not:
- Sellers retain the choice of whether to re-offer a specific lot or not.
- ULTIMZ provides information and guidance via email on how to proceed with re-offer decisions.
- Sellers can opt out of re-offering unpaid lots for auction if they prefer not to do so.
ULTIMZ aims to streamline the process and provide sellers with choices that align with their preferences, ensuring a smooth experience even in cases where payments aren’t received on time.
Q2: Why Haven’t I Received Payment for Some of the Items I’ve Sold?
A: If you haven’t received payment for items you’ve sold, consider these potential reasons:
- Cancellations and Claims: Payment may be withheld if there’s a cancellation of an item you’ve already been paid for or if there’s an open claim related to the item.
- Adjustments for Cancellations: If a cancellation occurs after you’ve received payment, the deducted amount will be adjusted from a future payment.
- Pending Claims: If there’s an ongoing claim associated with a sold item, the payment will be held until the claim is resolved. You should have received an email notification about this.
- Account Payment Details: Ensure that your account’s payment details are complete and accurate. Check the ‘Payment’ section of your account to confirm this.
- Shipping Status Update: If the buyer has received the order, make sure you’ve updated the shipping status to ‘shipped’ or ‘picked up’. This step is crucial for accurate tracking.
- Payments Setup Completion: If your payments setup isn’t finalized, Stripe (our payment provider) might require additional documentation before you can receive payments.
- Payment Frequency Settings: Check your payment frequency settings to ensure they’re aligned with your preferences. These settings group payments based on the frequency you’ve chosen.
By addressing these factors, you can identify the possible cause for missing payments and take appropriate actions to ensure a smoother payment process for your sold items.