AVASK’s Post

Note to European sellers 📣 As of 1st August 2024, Amazon will begin charging VAT for most VAT registered sellers if your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden. Currently, Amazon does not charge VAT on invoices to VAT registered sellers on the basis that this is billed from their Luxembourg head office. Moving forward it'll be billed from the relevant Amazon office in your country of establishment. This means that from this date, the way you need to process your Amazon fee invoices will change. Rather than being charged no VAT at all, Amazon will begin to charge you this meaning that you will need to reclaim through your VAT returns. #amazon #amazonuk #amazoneu #ecommerce #business

🌍 **VAT Obligations for Businesses Established Outside Europe Expanding into Europe** 🚀 **Scenario 1:** If your business is based outside Europe, such as in the USA or UK, and you enroll in Amazon's PAN-European program to expand to Germany, France, Italy, and Spain, Amazon will handle VAT collection on sales of goods delivered to B2C customers in the EU. Here's how it works: • Goods of Any Value Delivered from EU Inventory: If goods are stored in the EU and the selling partner is not established in the EU, Amazon will calculate, collect, and remit the VAT directly to the relevant tax authorities. • Local Sales VAT: Under the Pan-European program, products shipped are stored in the same country where the delivery is made, thus considered a local sale. The VAT of the destination EU country will apply to these sales. As a result of local sales, you must register for VAT in the country where your products are stored. **Example:** Suppose you are a seller based in the UK or USA and are enrolled in the Pan-European program to sell in Germany and Italy. Amazon will distribute your inventory across Germany and Italy. Consequently, you will be required to register for VAT in both countries. Below is the VAT rate for each country: 🇩🇪 Germany - 19% 🇮🇹 Italy - 22% 🇫🇷France: 20% 🇪🇸Spain: 21% If you are looking to expand into Europe and are concerned about VAT obligations, we can help you automate the entire VAT registration and filing process. Let us handle the complexities of VAT so you can focus on growing your business. 📈 #Amazon #PanEuopean #Ecommerce #EuropeVAT #AmazonFBA #Customs

Hello everyone, I wanted to share some important news for any businesses selling on Amazon UK. As of 1st January 2021, Amazon sellers are required to register for VAT in order to establish their business in the UK for VAT purposes. If you fail to do so, Amazon will collect and remit VAT in your B2C sales. This means that you will be required to pay the VAT amount to Amazon to account for the historical unpaid VAT on all B2C sales that fall under UK VAT on e-commerce legislation. One of my clients, "The Watch Trading LTD", recently received this notice from Amazon. Luckily, I was able to help them by applying for their VAT registration within a few hours. It's important to take action now to ensure your business is compliant with this new legislation. #vatregistration #vatcompliance #vatreturns #amazonsellers #amazonfba #amazonuk #ukbusiness #ukbusinesses #ukbusinessowners

Update to Amazon UK and EU Agreements and VAT Treatment Starting August 1, 2024, Amazon will implement changes to VAT treatment for sellers whose companies are based in UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, and Sweden. This adjustment aligns with the current VAT treatment on PPC fees. The impact of this update will vary across seller categories: - VAT-Exempt Sellers: 🚫💷 VAT will now apply to Fulfillment by Amazon (FBA) fees for these sellers, mirroring the current charges on PPC fees. As they are VAT-exempt, they won't be able to recover this VAT through the standard process. - Sellers on the Flat Rate VAT Scheme: 📊🛒 Similar to VAT-exempt sellers, those on the flat rate scheme will face VAT charges on FBA fees without the option to reclaim it. - Sellers on the Standard Rate VAT Scheme: ✅💵 These sellers can recover the VAT on FBA fees through the VAT return process, aligning with other VAT expenses. What are your thoughts on this update? 🤔 How do you foresee its impact on sellers? 🛍️ Will it prompt them to contemplate price adjustments? 💰📈 #Amazon #VAT #Ecommerce #Sellers #BusinessImpact #Amazonsellers

**************READ CAREFULLY*********** Can you sell on Amazon without registering for VAT in the EU or UK? Yes, you can sell on Amazon without registering for VAT, but whether or not you should depends on where you’re based. If you’re based in an EU country or the UK and sell all your products within that country, you can wait until you’ve crossed your resident VAT threshold before registering there. You can also voluntarily register for VAT before reaching the threshold. For example, if you’re based in the UK and selling within the UK, you can have a turnover of up to £85,000 before registering for VAT, but you could also voluntarily register before this. If you’re based internationally but have stock stored in the EU/UK and are selling in that country, you must register for VAT before sending your first shipment of products to that EU country or the UK. Don’t be fooled by VAT thresholds—they are only for businesses based in the country they’re operating from. For example, if you’re incorporated in the United States and decide to expand and fulfill products from the UK, you must register for VAT before sending your first shipment of products to the UK. #eccommerce #amazonfba #fbaseller #expert #amazon #amazonfbaexpert #vat Regards, Abdul Rehman

With Avalara's Amazon VAT Services ending on November 1st, #AmazonSellers must act quickly. Even with alternative options available, it's crucial to remember that you are responsible for VAT compliance when selling on Amazon. Keep this in mind as you transition to a new provider. We know this can be overwhelming, but don't worry we've got you covered when it comes to dealing with VAT. 💡 Reach out to us, we're here to help! https://lnkd.in/e69TeQft #AmazonFBA #sellonamazon #ecommerce #VAT #compliance

🚀 Exciting Update for Amazon Sellers in the UK & EU 🌍 Starting August 1, 2024, Amazon Services Europe S.à r.l. (ASE) will be transitioning to Amazon EU S.à r.l. (AEU). VAT treatment and agreements are changing, impacting how you are invoiced. Make sure to stay informed and reach out to your tax advisor for guidance on VAT recovery based on your country's regulations. Your success on Amazon matters to us! #AmazonSeller #VATUpdate #EcommerceNews 📦🛒

Big changes are coming, #AmazonSellers! 📣 🔚 VAT Services on Amazon is ending on October 31, 2024. This change will affect all sellers currently using this service, so it's crucial to start planning your next steps. 📅 If you're currently using the VAT Services on Amazon, it's crucial to transition or get onboarded by your service provider by October 1, 2024. ⚠ Act now to ensure a smooth transition! Start the process of transferring your VAT to #AVASK today and ensure a smooth transition before the October deadline: https://lnkd.in/egREZv9K Do you have questions about this upcoming change? Reach out to us, we're here to help! #Amazon #AmazonSeller #ecommerce #news #VAT #amazonvat

🚀 Important Update for Amazon UK and EU Sellers! 🚀 Starting August 1, 2024, there will be significant changes to Amazon's agreements and VAT treatment: 🔄 New Supplier: All services currently supplied by Amazon Services Europe S.à r.l. (ASE) will be transferred to Amazon EU S.à r.l. (AEU). This includes all agreements, policies, and terms, including Amazon Payments agreements. 📜 Invoicing Changes: Companies in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, or Sweden will be invoiced by the AEU branch in their respective countries, with local VAT rules applying. Companies not established in these countries will be invoiced by AEU's head office in Luxembourg, with no changes to VAT application. 💡 VAT Recovery: Local VAT will be charged on your Amazon fees, and in most cases, you can recover this VAT through your regular VAT return process. Consult your tax advisor for more details based on your local regulations. 📌 No Impact on Your Operations: This change won't affect your account access, listings, product pricing, customer reviews, selling services, or the price of services. How do you plan to adapt to these changes? Share your strategies and insights below! 👇 #AmazonSellers #VATUpdate #ECommerce #AmazonEU #TaxUpdates #SellerNews

📢 Attention UK Sellers! 📢 Starting today, August 1, 2024, Amazon will be charging a 20% VAT on all your Amazon fees. This means all UK sellers will need to account for this additional cost. But there's good news! If you're VAT registered on 20% in the UK, you can claim this VAT back from HMRC during your VAT return period. However, please note that non-VAT accounts and accounts registered on reduced rates i.e 7.5% or 6.5% will not be able to claim this back. So, adjust your prices accordingly and no need to panic. If you're not obliged to register for 20% VAT, don't register just yet. Monitor market trends for a few days and wait for other sellers to adjust their prices accordingly. Stay informed and ensure your business stays compliant. #amazon #amazonfba #amazonseller #amazonuk #ukbusiness