Online retailing is increasing rapidly right around the world. Companies of all sizes are taking advantage of the potential of the internet to reach into new markets, and extend their sales territories beyond the country in which they are established. This is great news for businesses; but, it’s extremely important to make sure that VAT obligations are fulfilled as part of the process of making sales. Getting VAT right is essential for international trade. When using fulfillment by Amazon (FBA) an obligation to register for VAT locally can be created – We are able to guide you through this process.
Our VAT Compliance service is available in all EU Member States. We work in many locations and are therefore pleased to provide in each country one point of contact for Online Sellers with multiple VAT registrations.
We work with a significant number of Online Sellers using the FBA Program: our aim with all of them is to limit the commercial impact of distance selling regulations on their businesses, while ensuring they remain fully compliant.
amavat® is pleased to offer special rates for Online Sellers with international VAT obligations. We have provided fees for the key FBA countries and fees for additional countries are available on request. Read more information regarding our prices here.
You sell it, Amazon will ship it. Amazon has created one of the most advanced fulfillment networks in the world, and your business can benefit from their expertise. With Fulfillment by Amazon (FBA), you store your products in Amazon’s fulfillment centers, and Amazon will pick, pack, ship, and provide customer service for these products. Best of all, FBA can help you scale your business and reach more customers.
Read more information regarding amazon fulfillment here.
Amazon (Fulfillment By Amazon) does not take responsibility for trader’s tax issues. VAT, customs and income tax on profits are the sole responsibility of the e-tailer or seller. Traders on FBA therefore need to understand how VAT on cross-border transactions works.
The place of supply of goods (the VATability) in a cross-border B2C supply situation, is in the country where the journey in the goods begins. FBA dispatches customer orders from its local warehouse in the country of the customer or end-user. E.g. dispatches to German customers will take place from FBA’s warehouse in Germany, rather than say from the UK warehouse where the trader may be holding most of his stock. This will require the trader to have a VAT registration in Germany as this is a ‘domestic’ sale rather than a ‘distance’ sale.
There are also VAT issues regarding the transfer of the stock from one EU country to another, in this case bulk stock is transported from the trader’s warehouse in the UK to FBA’s warehouse in Germany. The VAT treatment will depend upon whether this is a transfer of ‘consignment’ stock or ‘call-off’ stock. In certain situations the dispatch will give rise to a ‘sale’ and in others it’s not a sale but just a ‘transfer’.
The situation may be further complicated if the UK-based trader is an ‘agent’ acting on behalf of say a non-EU principal e.g. an American or a Chinese vendor. There are special VAT rules in an agency-principal situation.
Furthermore, the UK is a ‘common law’ country similar to USA but most of the other EU member states are ‘civil law’ countries. The concept of ‘commissionaire agent’ may be different there than in the UK leading to contractual complications with tax implications.
Due to the complexity and interaction of tax and other legal considerations traders should take advice and plan well ahead. Our Services will guarantee that you as an Online Seller joining the FBA Program are compliant with all VAT obligations in Europe and that you can concentrate on what you like to do… Selling!
The member firms of amavat® have offices around Europe and we pride ourselves on having personnel contact with our customers, while providing clear knowledge and experience. We can even arrange face-to-face meetings, if required.
You will always be able to contact our friendly and dedicated Account Managers, by either telephone or email.
The member firms within the amavat® co-operation consider themselves as your tax experts, to act in your name towards the relevant tax authorities.
Due to the fact that we operate our offices in all EU Member States, amavat® offers you the opportunity to talk with your countries Account Manager in your native language.
At amavat® we offer bespoke solutions which can be tailored to your specific needs. i.e. if you have specific requirements how you would like to submit the transactional data to us each month, amavat® can work out an integrated solution to work as efficiently as possible.
The VAT Registration and the VAT Compliance services are done in the country where the relevant tax authority is located. Therefore, amavat® are able also to assist you during the tax inspections and can offer you the full range of tax advising services in each country in which amavat® operates.
amavat® is a joint initiative by some member firms of HLB International, a worldwide network of independent accounting firms and business advisers.
If any of these is ever diminished, the last is the most difficult to restore. We are dedicated to complying fully with the letter and spirit of the laws, rules and ethical principles that govern us. Our continued success depends upon unswerving adherence to this standard.
Our bilingual advisers are very experienced – either at partner or managerial level. They will explain complex technical matters clearly in your language so that, no matter how complex the business issue, everyone understands our advice and there is no room for doubt.