We provide VAT registration & filing services in all the FBA countries at a fixed annual price including help & advice, dealing with the tax authorities or tax audits & record keeping. FBA sellers themselves are responsible for VAT liabilities on sales of their products on Amazon. The VAT law of the EU requires VAT to be charged at the point of dispatch of the customer order. Amazon may switch the point of dispatch to any of its FBA warehouses in Europe. Therefore, VAT registration is required in all FBA countries. Amazon requires that sellers should obtain VAT registration numbers where required or it may simply close their accounts. Also, without VAT registration the sellers cannot recover “import” VAT on the importation of their stock into Amazon’s warehouses in Europe. With an average VAT rate of 20% across the EU, this becomes a real cost the sellers can hardly afford to ignore. RKG Consulting are qualified tax advisers specialising in internet tax matters since 1996. We abide by professional standards and offer personalised advice to our clients.
RKG Consulting offers the following VAT-compliance services to Amazon FBA Sellers:
- VAT registration in the UK, France, Germany, Italy, Spain, Poland and Czech Republic.
- Preparation and submission of monthly or quarterly VAT returns.
- Help and advice regarding VAT and Customs matters.
- Dealing with the tax authorities on your behalf including tax audits.
- Maintenance of VAT records which may be subject to inspection.
We offer a market-competitive “fixed” fee for VAT registration in the FBA countries which includes filing all the necessary VAT returns in the first year from sign-up. Thereafter, a “fixed” annual renewal fee is charged for filing all necessary returns in the subsequent years. We will deal with all matters efficiently, reply to your emails promptly and save the aggravation that many sellers are currently experiencing judging from their comments on internet forums. Please contact RKG Consulting on email@example.com to find out more about our FBA VAT-compliance services and fees.
Amazon Pan-European Network: VAT for sellers
When customers order the seller’s products, Amazon handles the fulfilment logistics and delivery from the location closest available to the customer. The seller needs to charge the customer the VAT rate of the country the shipment or delivery location falls in as the place of supply of goods is the location where the goods are held when the order is dispatched to the customer.
Where orders are dispatched from several locations in Amazon’s Pan-European Network, the seller will face multiple VAT registrations and Intrastat reporting requirements.
How do I find out from where the customer orders are despatched?
If the seller enables Pan-European FBA they will be able to access a Cross-Border Stock Movement Report in their Seller Central account. The report contains information pertaining to sales, returns, refunds and fulfilment centre movements that impact stock in an Amazon European fulfilment centre. Based on this report, Pan-European FBA sellers will be able to track information including sales and ASINs movement, stock departure dates and stock destination countries. This information can be used for preparation of various European VAT returns, Intrastat and other compliance requirements.
Amazon European Fulfilment Network (EFN): VAT issues
For example say for a UK-based seller, whether the customer places the order on Amazon.co.uk or on Amazon’s other European marketplace sites (e.g. amazon.de or amazon.fr) the goods will be shipped from Amazon’s UK warehouse.
The seller pays a local fulfilment fee when selling on Amazon.co.uk and a cross border (EFN) fee when selling to customers of other Amazon’s European marketplaces. The seller would provide Amazon with its UK VAT number and then receive zero-rated listing fees services.
For UK customers of amazon.co.uk UK vat (currently 20%) should be charged. For customers of European marketplaces (.de or .fr) the VAT regime for distance selling will apply because the goods will be shipped from the UK.
Contrast this situation with that where the seller “imports” his product into a different member state and then sells it locally. In that case local VAT must be charged. Higher VAT rates could apply if the “importation” of goods model is employed instead of the “distance” selling model as the latter gets the benefits of the distance selling exemption thresholds
Amazon Multi-Country Inventory (MCI): VAT issues
For customers on marketplaces for which sellers do not store their inventory locally, Amazon offers cross-border delivery of their products. This may trigger VAT distance selling issues so the distance selling thresholds of the relevant EU member states will need to be kept in review.
There may be member states where some products are held locally with an existing VAT registration but other products are delivered “cross-border”. The VAT situation becomes complicated and advice should be sought.
RKG Consulting’s principal tax adviser is a Chartered Tax Adviser specialising in internet tax matters for over 20 years. Please contact us and we will be pleased to assist you.