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Ebay Fulfilment Service To Be Launched To The UK
The eagerly awaited Ebay fulfilment service is now being made available to UK sellers. The end-to-end fulfilment service, which was rolled out in Germany last September, will allow UK sellers to gain access to smooth logistics management and improved seller protection. Not only will the service allow users to store their goods in ebay warehouses, but users will also be afforded the opportunity to benefit from delivery services from Royal Mail and Hermes.
How Will Ebay Fulfilment Work?
Ebay fulfilment will see the online marketplace partner with Orange Connex to provide the service to sellers. The system has 2 main parts. Firstly, sellers will be able to store their goods and inventory in fulfilment centres across the UK. The first of these centres can be found in Birmingham and Leicester.
In these fulfilment centres, goods can be stored and packed. It is from these warehouses that the good will be collected for delivery. Sellers will have access to a centralised integrated platform in order to track and manage their inventory levels. This brings us on to the next stage of the service, the delivery.
Royal Mail and Hermes will act as the delivery partners for the service. Through these partners, Ebay have claimed that they will be able to offer next day delivery and a fully tracked and transparent service.
Furthermore, Ebay have pledged to offer full seller protection against delivery-related defects and resulting negative feedback.
Who Will Be Able To Use Ebay’s Fulfilment Service?
It seems that all participating sellers will be able to use the service. It is likely that Ebay will contact sellers, if they have not done so already, to offer them the opportunity to opt in. Sellers participating in the Global Shipping Programme will be able to fully integrate with the Fulfilment Centres using eBay fulfilment by Orange Connex,
It also seems that sellers will be able to use the service for their sales from their own shop or other online platforms, not just their Ebay sales. This is indicative of Ebay’s pledge to provide a wider service for sellers, which is something that sellers have been requesting for some time.
What About International Sellers?
International sellers will also be able to benefit from the new service. They, too, can sign up for the service and ship to UK customers. This may mean increased competition in the UK as international sellers can transfer as much of their inventory as they please to the UK and then store them in the Ebay warehouse, meaning they only have to pay customs fees once. Previously they would’ve had to do so on each individual order.
Whilst this is likely to bring more foreign sellers to the UK, the same possibility is afforded to UK sellers. Indeed, the fulfilment service is already available in Germany and China and looks set to be available in the USA in 2022. Sellers who wish to expand their business to cross-border ecommerce should definitely seek to take advantage of Ebay fulfilment for this very reason.
The New Fulfilment Service Will Definitely Benefit Sellers
If you are a seller who sells high volume quickly, the new Ebay fulfilment service should really streamline your operations. Due to the international reach of the service, sellers should definitely look into moving their inventories to other countries where they wish to sell. It is possible that sellers could move their European inventories into Germany to use the fulfilment facilities there, although it is not yet clear how sellers might use this in conjuncture with the IOSS and OSS. Contact us for more information on this topic.
Our long history of working with ecommerce sellers, means we can offer you expert advice – so please do not hesitate to give us a call on 0773182821 or send an e-mail to enquiries@jpaccountant.com. As well as help with the upcoming EU Ecommerce VAT Package and registering you for the OSS, we would be more than happy to file your EU VAT returns, and help you comply with VAT in case your account faces any issues. Get in touch to receive a quote today.
Is Next-Day Delivery Now A Must?
It may come as a shock to many of you ecommerce sellers to learn that you could be missing out on countless sales due to the delivery options you offer. Research has shown that delivery options are one of the main factors that consumers consider when making a purchase, with 45% of consumers claiming they are much more likely to buy a product if there is the option for next day delivery.
“More Than 500 million ecommerce users by the end of 2021”.
The rise in ecommerce that we have seen over the past 18 months has obviously been positive for ecommerce sellers, but it has also meant that consumers now have higher expectations when it comes to buying online.
This is partly due to the bigger retailers switching to a more digitally focussed business model once their stores were forced to close. Due to their vast resources, they are able to offer prospective buyers a vast array of payment and delivery options. However, this is not the only factor.
In response to the increased demand, many online merchants improved their delivery options and streamlined their services. Those didn’t (or, indeed, are still yet to) run the risk of being left behind.
“Only 66% of UK retailers offer next-day delivery”.
Offering next-day delivery is almost guaranteed to boost sales. As stated earlier, 45% of consumers say they are more likely to make a purchase if next-day delivery is offered. This is clearly the most sought-after delivery option, as 2-day delivery or click-and-collect options only appeased 22% of consumers, according to research.
If you are an online seller, you should really consider this feedback from consumers. Understanding and adapting to the new expectations of customers will be vital going forward as the ecommerce boom shows no sign of letting up, and thus the competition is only going to get stiffer.
“Free delivery could be an alternative to next-day delivery”.
However, if you really don’t have the capability to offer next-day delivery, there is another option. The only delivery option that seems to compare with next-day delivery is free delivery, as it seems customers are willing to wait a little bit longer for their delivery if it will save them some money.
40% of consumers claim they would wait up to a week for deliveries that charged no delivery fees, and only around 1 in 10 claim they expect free deliveries on the same or next day. In the end, it boils down to keeping up with the competition. Whether it is by being faster or cheaper, you definitely need to ensure your delivery options are comparable with your rivals.
“There is also the option of using online marketplaces”.
Perhaps rivals you cannot compete with, at least in terms of delivery options, are the major online marketplaces. Amazon Fulfilment is widely regarded as the best fulfilment option around, and as Ebay prepare to launch their own service in the coming months, it is only going to get harder to keep up with the online marketplaces.
However, there is wisdom in the old adage ‘if you can’t beat them, join them’. Placing your products on online marketplaces is a great way to gain exposure to new prospective buyers, and it also means you can take advantage of their strong shipping and delivery options. Indeed, many ecommerce sellers already ahead of the curve, with 36% of sellers joining a marketplace in the last 15 months, and just under half of marketplace sellers admitting to being active on more than one marketplace, it could be the perfect time for you to do likewise.
“Sellers can’t forget delivery technology”.
Furthermore, if you really want to enhance your deliveries you should consider implementing some sort of delivery technology. SMS notifications and email notifications are becoming more and more popular, as consumers now prefer the option to be able to track their deliveries and thus reduce the risk of missing a delivery.
Hopefully this article has given you some ideas as to how you can offer your customers a better shopping experience,
Should you require any assistance, don’t forget that our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we offer expert advice when it comes to selling online.
Please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or contact us through social media to receive a quote today for our support with all your tax needs or logistic support. In addition to our warehousing services, we would be more than happy to help you register for UK & EU VAT and file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues.
All You Need To Know About The IOSS
For non-EU sellers, the IOSS is possibly the most important aspect of the EU VAT reforms. Since the 1st of July, it has been possible for sellers to streamline their operations by submitting most of their EU VAT returns in one monthly return via the IOSS. This is likely to save a lot of time and money for both you and your customers. But what exactly is the IOSS? Is it right for you and, if so, how do you register for it? This article will answer all these questions and will even tell you how we can assist you in the process.
What Is The IOSS?
IOSS stands for Import One Stop Shop. The system is designed to lessen the administrative burden on foreign sellers for their low-consignment deliveries (under €150). Essentially, the system allows sellers from outside the EU to submit all of their sales that do not exceed €150 to EU countries in one monthly tax return to one country in which they are registered in, rather than filing an individual returns to each individual EU country. The EU tax authorities will then distribute the VAT.
Not only will this save sellers a lot of administrative hassle, but products imported to the EU with a valid IOSS number will pass through customs automatically, rather than being charged import VAT. This will allow for faster and cheaper deliveries for sellers and customers alike.
What’s The Difference Between This & The OSS?
The two systems work in a similar way, but they are not the same. The main difference is that the OSS is for EU-based sellers, or those who are VAT registered in the EU or/and hold goods in the EU. If you use the OSS, you can remit quarterly returns for all your pan-European sales to your country of residence or registration and there is no limit on the value of consignments.
Alternatively, the IOSS is for non-EU sellers and has a cap when it comes to the value of consignments which has been set at €150. You do not have to be VAT registered in an EU member state to use the IOSS, but you do need to have an EU-based intermediary. We can act as an intermediary for you. You can find out more about the differences between the two systems in our previous article on the OSS & IOSS.
So What Do I Need To Do If The Value Of The Consignment Exceeds €150?
These deliveries will not fall under the scope of the IOSS, and the usual rules for importing to a third-party country will apply. This means you will then have to decide whether to deliver DDU or DDP.
So, Is The IOSS Right For Me?
Registration for the IOSS is not mandatory, but 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.
But If I’m A Marketplace Seller, Should I Still Use The IOSS?
This is a good question as the rules for the IOSS and Amazon sellers are different. The new EU VAT rules for ecommerce have placed much more responsibility on facilitating marketplaces. This new responsibility extends to all B2C sales under €150.
This means that 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 only sell through online marketplaces there is no need for you to register for the IOSS.
However, if you make additional sales from your own website, you should still consider registering for the IOSS as Amazon will not be responsible for collecting VAT on these sales. You can find out more about the new rules regarding online marketplaces here.
How Do I Register For The 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. As stated earlier, we can act as an intermediary for you. Contact us to find out more.
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.
Once Registered, What Will I Need To Do?
There are a few things you will need to do once you are registered to use the system correctly. Firstly, and most obviously, you will have to begin using you IOSS ID number on your shipments. How you label your products will have to be adjusted to comply with the IOSS provisions – for example, you will have to include the HS-code for all your shipments.
On top of this, if you are a UK-based seller, you will need to inform HMRC that you have registered for the IOSS, and you will also need to inform them of your IOSS ID number. You can do this here.
If I Am UK VAT Registered, What Do I Have To Do When Selling Into Northern Ireland?
If you happen to be VAT registered and registered for the IOSS, you will have to submit your VAT returns for sales to Northern Ireland on your IOSS returns. This only applies to sales below £135.
If you are a business in the UK but you are not VAT registered in the UK, you will not need to charge VAT on low-value goods that you sell into Northern Ireland.
We Can Help You
If you have any questions about the IOSS or EU VAT rules, please get in contact with us. Our tax experts specialise in helping ecommerce sellers expand their business. Furthermore, we can even help you register for the IOSS/OSS and act as your EU intermediary if you are based outside of the EU.
Please do not hesitate to give us a call on 07734 182821 or send an e-mail to enquiries@jpaccountant.com.
Returned Goods Relief: Who, What, Why, When & How
Did you know that exporters and importers can claim a relief which allows them to pay less Customs Duty and VAT when they re-import to the UK? This is thanks to a mechanism created by the UK government. Termed Returned Goods Relief, the mechanism minimises the amount of customs fees importers and exporters will have to pay if the importer or exporter can prove that the items have already passed through customs previously. Without further ado, here’s all the information you need to know about how to pay less at customs when re-importing.
Who Can Use The Returned Goods Relief?
This relief is available to anyone who is re-importing goods back into the UK. However, the person importing them back must be the same person who exported them out. You can not claim this relief if you are re-importing goods that someone else sold or moved.
To claim this relief you must have an import licence. You must also have the commodity code for your item. If you are unsure about what a commodity code is or how to use them, you can find our guide on commodity codes here.
What Goods Can The Relief Be Claimed On?
This relief is available for any goods that are being imported in the UK following their exportation out of the UK (if this is applicable for the goods). However, there are a few guidelines for the goods that must be followed.
Firstly, the goods must have undergone inward processing and must have been cleared to be eligible to be used in Great Britain and must have been in free circulation when they were exported originally.
The goods must also be in the same condition as they were when they were exported. If they have had some work completed on them in order to maintain them small alterations are permissible, but they cannot have been altered in order to upgrade them or increase their value.
Why Would Someone Want To Use The Returned Goods Relief?
It is pretty obvious that the reason someone would want to take advantage of this relief is to save money on Customs Duty when re-importing an item. This can typically happen if the goods in question have been on loan somewhere, or on display or in storage.
Ecommerce sellers may also want to take advantage of this relief if, say for example, they had transferred some stock abroad in order to be sold but the demand for the goods is no longer present or they would rather sell the stock in the UK.
When Can You Claim?
You must claim for the relief at the point of import. In some circumstances you can make late claims and your claim may still be accepted, but to be safe it is definitely preferable to make the claim at the point of import.
Those hoping to claim should also be aware that there is a time limit of 3 years from the point of export. If your goods have been out of the UK for longer than 3 years there is no guarantee that you will be able to benefit from the relief scheme.
There are some specific circumstances where the time limit will be relaxed, such as special goods returning from long-term hire or exhibition goods that are usually displayed in the UK returning from a long-term display. For more information regarded the time limit exemptions, you can contact the National Import Relief Unit.
When it comes to re-importing goods from Northern Ireland it is not always necessary to use the relief scheme, so it is worth checking with your customs agent when attempting to re-import from Northern Ireland whether it is worth trying to use the Returned Goods Relief.
How To Claim?
You can claim the Returned Goods Relief by conduct – which consists of walking through the green channel – or orally. If your items are being moved by freight you will be required to claim the relief via the customs procedure codes in the Tariff.
You will be required to prove that the goods are acceptable with regards to the conditions that were outlined above. In order to do this, you may be ordered to complete the C1314 and C&E1158 forms.
Conclusion – The Returned Goods Relief Is Extremely Useful
This mechanism can be very useful for any UK importers or exporters. It is also worth noting that goods that were in the EU before 31st December 2020 can be re-imported using the Returned Goods Relief regardless of how long ago it was that they were originally exported from the UK. In short, the 3 year time limit will not apply to these goods. However, this must be carried out before 30th June 2022.
If you are a business who participates in cross border e-commerce, or importing of any kind, we would be more than happy to help you with your import VAT and Customs Duties. We can also help you register for UK VAT, the UK VAT deferral scheme, file your UK and EU VAT returns, and help you comply with VAT in case your account faces any issues.
At J&P, helping your business is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through this post-Brexit period, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
How To Prepare For The New Customs Control Rules
The HMRC announced last week that it would be contacting over 160,000 businesses to inform them of the steps they need to take before the beginning of 2022 to ensure that they can continue to trade with the EU. Those of you who kept up with the debacle following Brexit will remember that the UK government opted to push back the complete implementation of the new Customs Control rules from June 2021 to January 2022. It is these rules that the HMRC are imploring sellers to prepare for. This article will provide a brief overview of the new rules and will also summarise the advice from the HMRC on what you can do to prepare.
What Are The Upcoming Customs Rule Changes & Why Were They Postponed?
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 1st 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 1st 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. Here’s what you can do to prepare for this.
Making Supplementary Declarations For The New Customs Control Rules
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.
Sellers, typically use a customs intermediary to accomplish this. Indeed, if you are based out side of the UK you will have to have a UK-based customs representative to deal with customs and make declarations for you. You or your representative must have a duty deferment account in order to make your payments.
There is a simplified declaration procedure, but in order to use this you must be established in the UK, have a good customs compliance record and be able to show evidence that you will be able to stay within your account limit.
Conclusion – HMRC advise You To Appoint A Customs Intermediary
It is always complicated to deal with customs, but perhaps it has never been more difficult to do so in the UK following Brexit. You should strongly consider appointing a customs intermediary, especially if you are dealing with goods that require special licenses. The HMRC will also be contacting you regularly with advice on what else you need to do before the beginning of 2022. We will try to keep you up to date on all the latest developments leading up to the next stage of the Border Control model.
If you are a business who participates in cross border ecommerce, or importing of any kind, we would be more than happy to help you comply with any new guidance from HMRC. We can also help you register for UK VAT, the UK VAT deferral scheme, file your UK and EU VAT returns, and help you comply with VAT in case your account faces any issues.
At J&P, helping your business is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through this post-Brexit period, so please do not hesitate to give us a call on 0161 637 1080or send an e-mail to enquiries@jpaccountant.com.
HMRC Trade Tariff Tool For Your Commodity Code
When it comes to importing or exporting to and from the UK, commodity codes are a vital component of the process. These codes help to categorise goods and give sellers vital information about them, such as whether you need a license to sell those goods and also how much import VAT they will owe. Finding these codes can be complicated. Fortunately, the HMRC have created a tool you can use to find the commodity code for your products.
What Is A Commodity Code?
As stated in the introduction, a commodity code is a code that allows sellers to categorise their goods. This allows the products to go through customs much more efficiently and will make filling in declarations and other paperwork much simpler.
This code allows sellers and customs agents to work out what rate of import VAT should be paid, whether the duty is suspended, and whether sellers will need a license to distribute the goods. The code will vary in length but it is usually a 10-digit code. The first 6 are the HS code which are recognised globally, and then the last 4 are country-specific.
So How Do You Find Out The Commodity Code For Your Products?
Luckily, the HMRC have devised a tool that is free to use and allows sellers to find the commodity code for their products. Here’s how to use the tool:
Step 1: Search For Your Product
This is the first stage of the process. Try entering the name of your product in the search bar. If your exact product doesn’t come up it is worth trying to search what the product is made from.
Step 2: Choose A Section
Upon completing the search you will be required to choose a section for your product. You should choose the section that best describes your product.
Step 3: Choose A Subheading
After choosing your broad category you will be presented with more specific subheadings. Once again, you should choose the one that best reflects your product.
Step 4: Check The Footnotes
After completing all the above steps you will then be presented with some footnotes which should describe your products. If they do not, you must have selected incorrectly for one of the previous steps.
All being well, at this point you should have your commodity code. Typically you will get one for importing and one for exporting. Each section is responsible for a section of the code (eg the first step will give you the first 2 digits of your code). From this point you will be advised on whether you need a license or any supporting paperwork for moving the product in question.
What If You Think Your Code Is Incorrect?
HMRC have recognised that there are many goods that are hard to classify. They do offer special guidance on hard to specify goods and an A-Z of classified goods which you can use to try and find your product.
If you cannot find the right commodity code for your goods, you can contact HMRC for advice or for a decision on your goods. For informal advice, you can also contact their Tariff Classification service – this service will offer you non-legally binding advice.
Conclusion
If you are a business who participates in cross border e-commerce, or importing of any kind, we would be more than happy to help you find your commodity codes. We can also help you register for UK VAT, the UK VAT deferral scheme, file your UK and EU VAT returns, and help you comply with VAT in case your account faces any issues.
At J&P, helping your business is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through this post-Brexit period, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
