There are many reasons why you may be required to register for VAT in a country. These can include making sales in a country, providing services in a country, or holding stock in a country.

These rules can vary slightly from country to country, but when it comes to to Europe a good rule of thumb for a non-EU seller is if you make sales or hold stock in a European country, you will have to register for VAT in that country.

If you are an EU-based seller, you will have to register for VAT in any country that you hold stock or where your sales surpass 10,000 euro.

For more information, or for specific rules for a specific country, contact us today.

If you store your goods in a warehouse in any EU country, you must become VAT registered in that country. This means you must be VAT registered in every country that you store goods.

This includes if your goods are stored in a FBA warehouse.

Thus, sellers should consider minimising the amount of countries in which they hold stock.

Once we have all the paperwork, the registration process can take anywhere between 3 –10 weeks to receive a VAT registration number, depending on the country. It’s best to plan ahead and make sure you return the documents as soon as possible so we can get the registration sent to the tax authorities.

Prices vary depending on which country you need to register in. Please contact us for a quote or book a time to talk with a member of our team today.

Yes.

Germany: Monthly Returns + Annual

Italy: Monthly Returns

France: Monthly Returns

Spain: Quarterly Returns

UK: Quarterly Returns

Poland: Monthly Returns

Czech Republic: Monthly Returns

The only country that requires newly VAT registered companies to pay backdated VAT is Germany. This will only apply to clients that have already crossed the distance selling threshold in Germany (€10,000) or any clients that have stored goods in a German warehouse.

For every new German application, we require the client to send us their Historical VTR Reports (Sales Data) to we can check they do not owe any backdated VAT.

If we don’t get the correct data sent to us in time, the tax authority can issue penalties or fines that you have to pay in addition to any VAT you owe. Our new software ensures we can collate the sales data directly from the channels you sell on. We do,however, need you to supply other information such as import documents. Your client manager will work closely with you every time a VAT return is due to ensure we have everything we need to keep you compliant.

Penalties and interest charges can be issued for both late submissions and late payments including backdated VAT returns. The amount of penalty and interest charges differ from each tax authority, forexample, the French tax authority will issue a penalty fine of 10% for late submission and 5% for late payment of a VAT return. Please note interest charges will also be added.

As you know, the UK left the EU at the beginning of 2021. Consequently, the UK introduced custom checks on most products, such as controlled goods and alcohol and tobacco. In order to give companies time to adapt to the new customs control requirements, the UK initially postponed checks and tariffs on certain goods for 6 months. Companies would still have to make customs import declarations, but they could defer submitting these declarations by 6 months. This was then extended to 12 months (January 1^st 2022).

The first change for the customs control coming into effect is that exporters will have to provide pre-notification of the export of all animal origin and certain animal by-products. This will be required from the 1^st of October 2021. Also, from this date, if traders haven’t made a full customs declaration for an exports consignment, their haulier or carrier will need to submit a standalone exit summary declaration providing safety and security information.

The next change, which will affect every exporter, is that the process for importing or exporting goods from or to the EU will be the same as the rest of the world. This essentially boils down to making supplementary declarations.

If you have been importing goods using delayed declarations you should now be preparing to start making supplementary declarations from the beginning of 2022. Once you import something to the UK, you will have 175 days to make the declaration

If you are importing goods into the EU from a country outside of the EU, you will need an EORI number. The EORI number is an extension of the VAT number so you must first be VAT registered before the EORI can be applied for. An EORI number will be valid for use in all EU countries, so you only need one.

We can obtain an EORI number for you, so contact us today to find out more.

The short answer is yes.

It is possible for importers (or those who represent importers) to use a VAT and Duty deferral scheme in order to postpone their payments of VAT and Duty. The scheme also allows importers to pay the import VAT/Duty of all consignments that had their payments postponed at once, rather than individually by the means of direct debit.

You must pay the duties and Import VAT you defer during one calendar month (the accounting period) as a total sum, either on the 15th of the next month or on the next working day after it if the 15th is not a working day. This means that you can defer duties and Import VAT for between 2 and 6 weeks – an average of 30 days credit.

It is worth noting that you can also apply for a Simplified Import VAT Accounting account (SIVA) to help lower the guarantees required on your deferred payments. To get simplified accounting approval, your business needs to have a good system of control over its operations and flow of goods.

You’ll need to have records of your customs controls and a good history of VAT compliance over the last 3 years. You cannot apply if you owe money to the HMRC.

When importing into the EU from outside the EU, at the point of entry into the EU, import documents will be completed and issued on the import of the goods. Within the EU, there is one standard import document called the SAD (Single Administration Document) used for customs declarations in the EU, Switzerland, Norway, Iceland, Turkey, the Republic of North Macedonia and Serbia.

It is composed of a set of eight copies each with a different function. The design and use of one single document was designed to reduce the administrative burden and increases the standardisation and harmonisation of data collected on trade.

The import document identifies who the ‘importer of record’ is. The ‘importer of record’ is responsible for the payment of the import VAT.

The importer’s EORI (Economic Operator Registration Identification) number should be presented in Box 8 of the SAD [which you can see an example of here] (or C88 in the UK) document to ensure the import VAT can be reclaimed via the VAT return –if the importer is VAT registered in the country of entry into the EU.

Some freight forwarders will provide their own breakdown of this, on their own headed template and if this is the only evidence this cannot be reclaimed.

You might be surprised to find out that the UK government loses an estimated £9 billion in tax every year.

To combat this, HMRC have announced the Making Tax Digital initiative (MTD) which has been live since April 2021.

Essentially, the government want the process of submitting tax returns to be completely digital. This does not just mean the submission itself, but also the gathering of the data itself. This means it will no longer be acceptable to copy and paste data (other than for the original creation) and send it off, the HMRC now want you to use systems that enable the recordings of your purchases to be recorded directly into your tax returns.

These ‘systems’ that you need to implement are called digital links. You will need to adopt these systems to be VAT compliant.

Previously, you wouldn’t have faced any penalties for failing to implement this form of tax reporting, but this is what has changed since April 2021 with the introduction of Making Tax Digital.

A ‘digital link’ is a transfer or exchange of data that can be made electronically between software programs, products or applications without the involvement or need for manual intervention.

From April 2021, the HMRC will now require automated digital links between any software program, product or application used in the process of preparing a VAT return.

This does mean that there will need to be a digital link from when a transaction is first recorded on a digital format all the way to the digital submission of the VAT return figures to HMRC. Fundamentally, you need to be able to establish a clear digital journey from data source to VAT return submission. This is the main aim of Making Tax Digital.

As it stands, the current penalty is a fine of up to £400 for failure to use MTD software when submitting VAT returns. So far they’ve actually been pretty lenient with this as they understand that the software signals quite a drastic shift for most users. However, they have made it clear they are going to become far less reluctant to hand out these fines from this point onwards. They have not ruled out increasing these fines.

HMRC are also in the process of trialling closing the online VAT return function to businesses who still haven’t signed up for MTD. In essence, they would be forcing these businesses to sign up for Making Tax Digital in order to file their VAT returns.

This would obviously cause quite a bit of disruption and so at the moment the HMRC are trialling it with 800 businesses to see how well this sanction works. If you find yourself in this situation, you will be prevented from filing returns for July-August and will need to ensure you are signed up in time to submit the return by 7^th October.

HMRC have provided the following list for records you must keep digitally:

You need to keep the following records digitally:

• your business name, address and VAT registration number
• any VAT accounting schemes you use
• the VAT on goods and services you supply, for example everything you sell, lease, transfer or hire out (supplies made)
• the VAT on goods and services you receive, for example everything you buy, lease, rent or hire (supplies received)
• any adjustments you make to a return
• the ‘time of supply’ and ‘value of supply’ (value excluding VAT) for everything you buy and sell
• the rate of VAT charged on goods and services you supply
• reverse charge transactions – where you record the VAT on both the sale price and the purchase price of goods and services you buy
• your total daily gross takings if you use a retail scheme
• items you can reclaim VAT on if you use the Flat Rate Scheme
• your total sales, and the VAT on those sales, if you trade in gold and use the Gold Accounting Scheme

The OSS & IOSS are the biggest changes that have come into effect with the new EU VAT rules. In a nutshell, the OSS allows sellers based inside and outside the EU to report all their sales to one country in a quarterly VAT return.

The IOSS works similarly, but for import VAT and for sales up to €150. The IOSS also requires monthly returns, and you may need an EU-based intermediary depending on which country you register with.

If you are wondering whether you should register for the OSS, there is a few things you should know. Firstly, there is no longer different distance selling thresholds for each EU member state. Instead, there will be a EU-wide application of a €10,000 distance selling threshold.

 If your sales exceed this amount in any state you should definitely sign up for the OSS a it will simplify your VAT reporting procedures. Below this amount, you can still sign up (and probably still should) but you may be able to continue using domestic rules for your VAT,

 Secondly, you should know that almost all goods and services will be covered by the OSS and the VAT reporting for both will be much simpler than before. Whilst it may take some getting used to, the OSS looks set to really simplify VAT obligations in the EU.

 This is especially true if you are a UK seller, as the EU VAT Ecommerce Package will bring the EU’s VAT and ecommerce rules much more inline with the UK’s rules since Brexit.

 As for the IOSS, whilst registration for the scheme is not mandatory, in most cases it is recommended.

 Basically, if you make sales regularly to the EU that have a value of less than €150 then the IOSS would be very helpful to you. The reduced time your items spend at customs, and the ability to avoid additional taxes and customs fees means you will be able to accurately advertise the price of your products to consumers.

OSS

 Each country in the EU will has got an electronic portal that you can access to sign up for the OSS. You will need to submit an application that will need all the relevant information, such as your VAT number and business registration and address. Once the application is completed the relevant tax authorities will check everything is in order before approving your registration.

 You will need to think carefully about which country to register in. If you hold stock in a country, or you have a premises there you will have to remain VAT registered in that country, so it makes sense to register for the OSS with that country.

 You should also seek advice about each country’s specific rules surrounding signing up. Some countries, like the Netherlands for example, require you to have a Dutch intermediary and representative to complete the application.

 IOSS

 How you can register depends on whether you are based in the EU or not. Assuming you are not based in the EU, you will have to appoint an EU intermediary who will complete the registration for you via any of the EU-member states’ portals.

 The intermediary is quite handy, as they will fulfil your VAT obligations on your behalf. They can do this by using a specific VAT identification number for your business transactions. We can act as an intermediary for you.

 If you are based in the EU, you do not need to appoint an intermediary and you are free to access the portal and register.

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.

As for the IOSS,  when you make a sale on an online marketplace under €150 you should use the marketplaces IOSS ID number rather than your own. Thus, if you soley sell through online marketplaces there is no need for you to register for the IOSS. If you make sales without a marketplace facilitating the trade, you should still register.

You must also be aware that you must remain VAT registered in every country where you hold stock, regardless of if you are signed up to the OSS scheme. This includes if your stock is in an FBA warehouse. Please be careful when trying to de-register from countries.

Once you become registered in a country you will receive the VAT number with an effective date. This is the date you will need to start paying VAT from to that country on your relevant sales.

Once registered we will collect your sales data in the form of VTRs (VAT Transaction Reports) each period. These can be downloaded via Amazon Seller central. Alternately, you can grant us partial access to your seller account so we can download the data ourselves each month/Quarter. (Please see Notion Guide to instruct client how to Grant us partial access).

Once we have the data, we will then calculate the amount you owe to the tax authority and inform you or the value & relevant bank details to make payment to the tax office before the deadline. We will then file the VAT return with the tax office.

There are a few golden rules to remember when answering this question. Firstly, Online Market Places (OMPs) are only responsible for accounting for VAT on B2C sales, not B2B sales. Whilst this seems redundant, since most sales made on OMP are B2C by nature, it is still worth noting to make sure you do not accidentally neglect to pay VAT on your sales.

Secondly, OMP VAT responsibilities only extend to sales that have a value of up to £135 when the goods are being acquired from overseas. This includes sales below £15, since the Low-Consignment Relief was abolished at the beginning of this year. This is because up until this value goods are not liable for import VAT, just sales VAT.

 The value refers to the intrinsic price of the product and does not take into account the extended costs of the product, such as transport costs.

Thirdly, OMPs are responsible for the VAT obligations of all purchases under £135, regardless of whether the goods are stored in the UK or not, and also regardless of whether the seller resides in the UK or not. In fact, when the goods are stored in the UK OMPs actually have more responsibility, since they are responsible for collecting the VAT on all transactions, regardless of price.

Anyone who imports CE-marked products into the EU to sell will be required to adhere to the new legislation. This includes Amazon sellers. Products typically required to be CE-marked include machinery, toys, electronic devices, protective equipment and construction equipment, among others.

From July, suppliers of these products will have to have somebody who is stationed in the EU to act as a representative for the products and its compliance to these regulations. This representative will be called a ‘Responsible Person’ and it will be illegal for non-EU sellers to sell their CE-marked products in the EU without one.

The good news for Amazon sellers is that Amazon can act as your Responsible Person. Amazon offer a service called ARP (Amazon Responsible Person) which you can subscribe to. This means that your products will be covered by Amazon. You do not necessarily need to use Amazon as your responsible person, but it is highly recommended that you do.

You can find more information on the ARP serviceby contacting us.

The main points of interest for June’s changes are the removal of packaging weight when calculating the weight of a product and the realignment of weight categories. This means that the 4oz packaging that Amazon previously added to an items weight automatically has been removed. This could actually mean a heavy decrease in fees for some items.

 For example, if you have a 12 oz product, this would previously have been considered a 16 oz product. Now, due to the fees being calculated just based on the products actual weight you could save just under 50% on FBA fees for this item.

 FBA fees on the whole will be increasing modestly by about 2-3%, so make sure you are fully aware of the weights of all your items. You can check the changes for all the weights here.

 You will be happy to know that storage fees will not be increasing at all this year. This means you don’t have to worry about incurring any new costs for storing your items in a Fulfilment centre.

 However, you should be aware that removal fees are actually taking a big increase. The median increase in removal fees is 28%. In fairness, this makes a lot of sense when you consider how much Amazon have to spend on the removal of items sellers forget about. This increase will likely convince sellers to be especially of their inventories from now on.

 Due to the increase, you should definitely try to remove any unfulfillable stock from your inventories before June.