The New CE-Marked Legislation & How It Affects Amazon Sellers
nyone who imports CE-marked products into the EU to sell will be required to adhere to the new legislation. This includes Amazon sellers. 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.
The Flat Rate Scheme (FRS) & Online Marketplaces
From the beginning of 2021, the UK VAT regulation for overseas online sellers has been changed. However, for those traders under the Flat Rate Scheme, it might not be beneficial in terms of the input VAT claim restrictions. It is mainly because of the new VAT collection responsibly of Online Marketplaces (OMPs). Some traders mentioned that HMRC might allow online sellers to claim back VAT on the stock on hand value when the OMP’s started to deduct VAT. However, so far, there is no written guidance regarding this specific VAT treatment.
Brexit 6 Month Review: A Difficult Start
Brexit has clearly not gone completely smoothly for merchants and businesses. However, sellers should not be too dismayed. It was never going to be an easy start to post-Brexit life, and the pandemic has certainly not helped. As the lockdowns end, companies grow more accustomed to the new procedures and the EU Ecommerce VAT Package brings the EU ecommerce rules more inline with the UK’s, we should see a more positive outlook by the end of the year.
Drop Shipping Not Delivering Profits Since Brexit
The first major change that Brexit brought about was shifting the responsibility for VAT away from the customer at the point of receipt and on to the company or facilitating market place at the point of sale. This meant that prices went up to account for the VAT. This is extremely problematic for drop shippers since they are obviously already working with narrow profit margins since they are reselling from a third party.
One-Stop-Shop Guide For Online Marketplace Sellers
If you mere 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.
How To Register For The OSS – Get A Quote Today
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.
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