For the most part, ecommerce sellers will be happy to know that the launch of the one-stop-shop (OSS) is just around the corner. The new simplification mechanism will mean that many ecommerce sellers no longer have to register for VAT in every state that they sell to, and instead can register in one state and submit one quarterly return for all of their pen-EU sales. However, this doesn’t necessarily extend to Amazon sellers. This article will look at the relationship between online marketplaces such as Amazon and the one-stop-shop, and what changes sellers can expect to face. If you are interested in learning more about the One-Stop-Shop you can find more information in our recent article. This article will be tailored specifically for Amazon and other online marketplace (OMP) sellers.
New Rules For Online Marketplaces From The Introduction Of The EU VAT Ecommerce Reforms
The EU VAT Ecommerce package is the collection of sweeping reforms that take effect from the beginning of July. The One-Stop-Shop is a part of these reforms.
These reforms are having a big impact on how the VAT from sales made using OMPs are collected. From the June 1st, it will no longer be the responsibility of the sellers to account for VAT on their sales. Instead, the online marketplace will be responsible to collect the VAT on all B2C sales that are below €150.
In other words, rather than being liable for import VAT, the VAT for these sales will be collected by the marketplace (such as Amazon) at the point of sale. This is definitely a win for ecommerce sellers, as it will mean less reporting responsibility for them. There is less good news when it comes to the OSS…
Can Amazon Sellers Or Online Marketplace Sellers Use The OSS?
This question is quite complex, as it depends on how involved Amazon are in your processes. If you merely use Amazon as a platform to showcase your products, then you can benefit from the OSS. This also goes for any sales an Amazon seller makes through their own website or online store.
However, Amazon sellers and those who use an online marketplace to facilitate their trades through fulfilment cannot use the OSS for their sales. This is because these sales fall under a specific category, which essentially means they are considered to be a B2B transaction. In this sense, nothing changes.
You must also be aware that you must remain VAT registered in every country where you hold stock. This includes if your stock is in an FBA warehouse. Please be careful when trying to de-register from countries.
What Should Sellers Do?
If you use FBA then you don’t need to do anything. You can carry on operating as you are and Amazon will automatically begin collecting your VAT. Just be aware that is only for sales under €150 though. If the sale exceeds this amount the VAT is your responsibility.
If you are not part of the program then you should register for the OSS. You can find out how to do so here. It is also worth signing up for the One-Stop-Shop if you make sales from another source such as your own website.
Should you need more help, we would like to take this opportunity to remind you that our long history of working with Amazon and eBay sellers means we can offer you expert advice.
As well as helping with your Fulfilment, we would be more than happy to help you register for the OSS and help you with all your VAT compliance needs in case your account faces any issues.
So please do not hesitate to give us a call on 07734182821 or send an e-mail to enquiries@jpaccountant.com for a quote today.
