Europe Station VAT Registration Before Knowledge
01
Q1：Does Amazon Europe only need a unified European VAT number to handle all Amazon pan-European sites? Is there any related solution?
Q1-A.
It's not;
1, whether you need to register Vat the most important criterion is whether there is a local inventory, so as long as there is a local inventory, you need to register the local VAT respectively.
2, so before sending FBA must first register the local VAT do not think of first issued and so on to check and then say such a luck mentality
3, about Amazon do not open pan-European program pan-eu, because pan-European is equivalent to the tacit recognition of Amazon can be freely deployed to five countries, five countries have to be registered!
Solution Reduce costs: Plan which market you want to be in, for example, the UK is the lowest cost market, the UK is the first to be sent to other countries through the UK The Distance Selling Act states that as long as Germany doesn't exceed 100,000 Euros and France 35,000 Euros, you can report it in the UK.
P.S. Amazon Pan-Europe
1) What is Pan-European FBA?
Pan-European means that a seller delivers products to an Amazon logistics center in a European country and automatically distributes these stock products to various logistics centers throughout Europe to meet the future needs of the expected customers. Compete with other sellers in the marketplace on the five European sites of Amazon. Regardless of where the product is shipped from, sellers pay only the local Amazon logistics costs incurred in the market where the product is sold, and are not subject to the cross-border costs of the European Logistics Network (EFN).
By enabling Pan-European Amazon Logistics, you authorize Amazon to allocate and store your Amazon Logistics inventory that satisfies the registered Pan-European Conditions in the United Kingdom, France, Germany, Italy, Spain, Poland and the Czech Republic.
2) Benefits of Pan-European FBA for Sellers
After the goods sent to Europe, the seller only needs to send the product to the Amazon logistics center in one of the countries in Europe, Amazon will use its own logistics resource system to allocate the inventory to the other five countries Amazon FBA warehouse. After the buyer places the order, then continue to complete the logistics work of delivery to the door.
No need to bear the cross-border costs between countries, only need to bear the buyer to order the delivery costs of the mall.
Sellers no longer need to arrange goods to European countries. It greatly saves labor and reduces costs.
Customers at all European sites can receive their orders quickly. Enhances the buyer shopping experience.
(3) Product conditions for participation in Pan-European
The product itself conforms to Pan-European, (the backend shows the conformity).
All five sites have active offers, (you can synchronize first, then create pan-European)
FBA inventory in at least one country
The ASIN information is consistent across all five sites, including SKU, UPC, labeled or unlabeled.
4) Participate in the Pan-European program
1, First, make sure the Amazon Logistics Europe Integration Service is enabled.
Settings->Fulfilment by Amazonon-> Cross-Border Fulfilment Settings->Edit->Enable
2, check which products are eligible to participate; and
Inventory->Pan-European FBA Inventory->Download enrolment template->Download Pan-European Eligible ASIN Report
3, for eligible ASIN in five sites to create active listing and registration, effective within 24 hours.
If a product at a stop becomes inactive, the product must be made active again within 14 days, otherwise the registration will be terminated.
02
Q3：What should I do if I already have a UK VAT number? At present, France, Italy and Spain don't use VAT, should we ignore it for the time being?
Q3-A：At present, France has already started to take action Sellers with a number should have received an email from Amazon saying that they will cooperate with the tax office to publish sellers' 2017 sales data So although Italy and Spain have not yet started to ask for it, we can foresee that tax compliance is an unavoidable obstacle in 2018 It is recommended that we operate separate accounts One account can either be fully compliant or we can take a gamble After all, what is worth more than the cost of the tax representative is your Accounts
04
Q4:What is the difference between the registered address and the mailbox of the accounting office or the merchant's own? What is the difference and how will it affect the future?
Heard someone had an address and mailbox problem. Did not receive mail, no feedback. This resulted in a suspension. What is the situation? What do merchants need to pay attention to in the future?
Q4-A1：The registered name and address are the client's own, but when registering, the client will sign a 648 document authorizing the firm to handle all subsequent matters, so subsequent letters will be sent to the firm's address.
As for the client's claim that they have been blocked because they didn't receive HMRC emails and notifications, that doesn't exist, HMRC have their own Amazon mailboxes that they send directly to the tax agent or directly to the client, and we always remind our clients to make a folder of HMRC mailboxes and check them frequently so that they don't miss out on emails, and if we do receive emails, they'll be forwarded to the client immediately, and there are also cases where unscrupulous tax agents are renting out the address and don't receive the mail, and we don't know if they have received emails, but we do know that they do.
Inland Revenue Department's mailbox
onlineselling.compliance onlineselling.compliance@hmrc.gsi.gov.uk
Frequently Check Mail
Q4-A2: The proxy address is the proxy's
05
Q5.If the German station vat is checked, will the other station stores be closed as well, and will the stock in other countries be available for sale?
Q5-A, Germany and the United Kingdom are different According to the current situation, the investigation of Germany will lead to the blocking of the accounts of the other five countries and the freezing of funds and the blocking of inventories, so a good solution is to withdraw money every day (Europe can withdraw money every day and withdraw it manually), and to control small quantities of goods and many batches to keep the risk within an acceptable range.
In the UK, there are two scenarios.
1. the IRS sends out an e-mail that you ignore, and it could trigger a five-country audit, which is a time limit for submitting your tax ID number for five other countries, so to go back to the last question, it's important to check your mailbox regularly.
Inland Revenue Department mailbox: onlineselling.compliance onlineselling.compliance@hmrc.gsi.gov.uk
But after the problem in Europe, don't register the same information for an unopened site.
2. UK investigation will only affect UK blocking, the inventory will give you 30 days to clear the goods and the funds can be withdrawn after 90 days.
Q5-A2：One site was investigated, Amazon platform to avoid suspicion, may ask the seller to provide other sites vat tax number
But after the problem in Europe, don't register the same information for an unopened site.
06
Q6. What is the status of the French tax office?
Q6-A1: The latest news in France is that many sellers have received emails from Amazon to cooperate with the tax office to disclose sales data There are unreliable sources that may follow the United States directly in the Amazon back office withholding Last Friday, Amazon published the registration tax number of the company is that 400 euros only accept the United Kingdom, Germany, the Czech Republic There is no very reliable French tax agency on the market Uncertainty of the situation Brand new account We recommend not to open the first We'll use the French warehouse for remote sales and self shipments.
The old account, which was already out of order, was the last one, daily withdrawals, small batches, multiple shipments, control of funds and inventory.
07
Q7:Is it true that we need to start paying tax after registering VAT and filling in the back office?
Q7-A, yes, for example, the effective date of the tax code is 1.1 The certificate will state that the month of your return is 3 6 9 12, then by 3.31 the end of the first quarter of the return needs to be completed before 4.7 to complete the filing and payment, we will guide the customer how to navigate the data in the back office how to calculate the tax how to pay to the tax office The registration and filing documents will be sent to the customer customers know their tax status very well. Status
We don't have a UK Pound Sterling account, how do we pay?
Use P card ping pong wf card skyee all can pay taxes
08
Q8: If I have sales of £20,000, can I just register my tax code and file a tax return?
What is the specific declaration, the piece, what do I need to qualify for? How many pounds do I need?
Or fill it out, it's required. The backend is prompting for £15,000.
Q8-A Once registered, you must file a return even if you have zero sales If you file a zero return, there will be a delay once a year, and if you file more than once, you will be subject to a £100 penalty, so you must make sure that your tax preparer completes the return for you within the required time.
09
Q9.I have heard of filing tax return for 13 months in a year in Germany, is it mandatory now? Is it necessary to apply now?
Q9-A, the UK files quarterly returns four times a year, Germany and France file 13 times a year, once a month, plus an annual general return.
10
Q10 Is it mandatory to report the same sales as backend sales for every report?
Q10-A This question is really not suitable to speak here openly We are only the executive operator will help customers calculate the actual amount of money payable, but the exact amount to be reported is up to the customer to decide, which means that the report can be as much as you want, but refused to be untrue zero reporting
The IRS doesn't check, but they do audit from time to time, and if they're caught, they'll be asked to pay back the tax, and it's up to the seller to weigh the risks and benefits.
Just tell me what are the chances for us to be detected by spot checks if we do not report truthfully, such as under-reporting, and what will be the consequences?
There's a penalty, and the percentage varies, depending on the amount, the number of years, and it's adjustable.
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Q11. Is there a requirement to declare the value of goods if the UK has applied for a low tax rate? Is there a requirement to report the value of goods on a yearly or quarterly basis?
Q11-A, it is expected that sales of up to £150,000 in a year can apply for a lower tax rate of 7.5%, an additional 1% or 6.5% in the first year, and when sales exceed £230,000, the tax rate will be upgraded to the standard rate of 20% on a mandatory basis.
This is for the quarter, 12 months forward, or one year forward.
Standard tax rate (standard tax return) Import VAT credit can be claimed.
Small tax rate (low tax return) Import VAT credit cannot be claimed.
I'll post the exact algorithm for your reference.
Specific import vat Calculation formula for sales vat
1) IMPORT VAT = (declared value of goods + first way freight + import tariff)VAT Rate (20%) Import Customs Duty = Declared Value of Goods X Commodity Tax Rate (different rates for different commodities) 2) Sales Value Added Tax (SALES VAT) = Final Sales Price / 6 Final Selling Price: This is the final price after the seller has added up all the costs of the item, promotional expenses, customs duties, VAT, profit, etc.
3) Actual VAT (Value Added Tax) paid = SALES VAT - IMPORT VAT
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Q12, How can sellers cooperate with agents to file tax returns? What information do I need to provide? How can sellers check that they have filed tax returns?
Q12-A Each tax agency requires different information, our requirements are relatively simple, later I will post, how to check the tax return has been filed, the IRD will give the return, I will also post for your reference, the IRD return template
13
Q13,What are the current vat exemptions for each pan-European country? What information do I need to prepare to register as a vat seller in my country?
Q13-A, as long as the opening of the local warehouse, you have to register VAT, there is no exemption, but there is a long-distance sales law, also known as the long-distance sales law, that is to say, you put the warehouse to the United Kingdom, from the United Kingdom to send to Germany and France, Germany does not exceed 100,000 euros a year, France and Italy does not exceed 35,000 euros, you can pay on behalf of the United Kingdom, do not have to go alone to the registered German, but once more than 100,000 100,000, you have to go to the registered German
There is a drawback, that is, the FBA fee from the United Kingdom to Germany, will be more expensive than the pan-European cross-border service fee of 0.5 euros, which is a small tips
14
Q14.What is the amount of annual turnover that will disqualify a low tax rate application in the UK? How does the tax point change?
Q14-A up to £150,000 a year, you can apply for a low tax rate (as far as possible to choose at the time of registration, later change the rate is very troublesome), up to £230,000, it will be automatically mandatory to upgrade to the standard tax rate, so to put it simply, that is, 230,000 pounds!
The standard tax rate of 20% is a bit complicated here, so please listen to me patiently on how to calculate it.
For example, a product, (net value) price is 10, VAT is 2, the total price (gross value) is 12,) then it is 10 of the 20%, 12 of the 16.6%
But what we exported from the backend is the sales data, the gross value, so when calculating, it should be 16.6% of the sales.
UK sales alone, not including other countries @ One Fly
15
Q15.Some people start to register and then find an organization to transfer to an agent. Why does this happen? What are the possible problems in the process? Some organizations don't accept the transfer, but only those who have been represented by them from the beginning. What are the problems that may arise in this process?
Q15-A1：Some of them are not clear enough about the charges and then charge the clients or the follow-up service is not professional enough, so they would like to switch to other agents to do the declaration.
Q15-A2: Possible problems:
1, the price is confusing;
2. Failure to submit the registration information in time, delaying the submission of information in China for too long, resulting in a long time for the issuance of the tax number;
3, Failure to submit returns on time, which can result in a £100 penalty and is not good for the account; the whole service process is not clear enough
We also receive the transfer of customers, but because of the transfer, many of the previous tax agent does not cooperate with the submission of information to the customer, it is very troublesome, so, generally tax agents do not like to receive the transfer of customers!
Below is the exemption amount for long distance sales, i.e., delivery from UK FBA to other countries, you can see it in detail below
Attachment: Exemptions for European Countries
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Q16：How to deal with the old European account that already has a UK vat, there are sales in Germany and Italy, but no remote sales, is the choice to use the UK vat to do remote sales, or be careful to do, because Germany will seal the whole account in Europe after checking, whether the sales of small or only check the big head? If you open a new European station directly all registered vat sales Well, for example, the United Kingdom on the registration of the United Kingdom Germany on the registration of Germany, and do not need to open the Pan-European program, is expected to Germany mandatory tax payment is to what time? I've heard that the German tax office is currently understaffed and will start in May at the earliest.
Q16-A：This question may not be able to meet everyone's expectations, we certainly hope to hear a practical answer, but the policy of the tax bureau, including the government's policy, are often changing, no one has no way to expect the next tax check is when, and tax check does not distinguish between the amount of money and size, may be checked, the last time I have heard of a tax bureau, VAT accounted for the entire German tax 80% ( including local business VAT), e-commerce VAT and a large piece of the gap, so the policy will only be increasingly tight, or those words before, it is recommended to control the amount of money, control inventory, control risk, and be able to tighten the policy. Including local business VAT), e-commerce VAT is a large piece of the gap, so the policy will only get tighter, or those words before, the old account, it is recommended to control the amount of money, control inventory, control the risk of being able to do a day is a day; new account, from the very beginning of the full compliance, do not need to be an account of the five countries are doing, you can be separated from the operation!
17
Q17.If you open a new European account and first open a UK vat to do remote sales to other countries, and then file a tax return in the UK, for example, after Germany reaches 10w Euros, and then register a German vat, do you only have to pay the tax after registration or do you have to make up for the previous one? Is this feasible? I'd like to register the UK VAT first, and then register the German VAT when the German VAT reaches 100,000 euros, and then register the German VAT for the rest of the tax return.
The said remote sales, is it registering a UK vat to sell remotely the most affordable or registering a vat in another country and then selling remotely in another country is a bit more affordable?
Q17-A: After a variety of information collated to collect comparisons, the current view, a better choice, is not declared in the United Kingdom for the time being, wait until more than the threshold, go to Germany when the registration, and then make up for the previous; as for which affordable, depending on the amount of your sales in other countries, if the amount of money is very large, is certainly the inventory sent to the local FBA fees cheaper, from Germany to Germany and from the United Kingdom to Germany FBA The price difference is a lot
UK Usually 1-3 days, for Germany, 1-month if the account is brand new and no back taxes are involved.
For Germany, if it is a brand new account, you must wait until the tax number comes in before shipping.
That is, you don't file a return until you have more than 100,000 and register your tax ID in Germany.
18
Q18.Last time I contacted a forwarder, he told me that I can go through the VAT package from their side, is it safe to do so?
Q18-A, double clearing package tax is definitely irregular, is also unsafe, in principle, vat and eori is not allowed to borrow other people's, double clearing package tax is to use the freight forwarder's vat customs clearance, then your sales data is no way to track the source, now the regular freight forwarders will have their own vat and double clearing package tax two kinds of prices, it is recommended that all the compliance!
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Q19.If it's a new account, the German policy is not clear yet, if I register now, assuming it's really opened in May, what's the loss for sellers in this period of time? Besides, how long does it usually take to register a vat with all the information?
Q19-A can not be Austria, in fact, now on the mandatory, just one layer of implementation may not be so fast, after all, they have limited manpower, you spend so much money to register a tax number, the result of non-compliance, it does not pay to lose Austrian, Germany, the audit is very strict, it is recommended that all the truthful reporting
If you are ready to register now, it is recommended that all of your accounts are compliant, otherwise you should keep the non-compliant accounts in a separate account to share the risk.
If you're detected, then you're definitely out of compliance, and you'll be fined in addition to paying back the money.
I'll sign up for the UK vat first and then use it for distance selling to Germany and when I'm almost at 10w then I'll sign up for the German vat to pay for the latter Then there's the question of whether or not I'll still be able to use the UK vat for distance selling to Germany in 12 months time, in the event of a German vat.
If you have VAT in Germany, why do you have to pay it in the UK? Because you have VAT in Germany, you have to declare it in Germany every month.
You've under-declared, it's not over £230,000, so it's definitely a low tax rate.
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Q20. I haven't registered a vat for my new account in the UK, can I send an fba?
A:No, according to the UK tax law, before selling in the local market, you have to register the local VAT.
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