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UKCA Marking – Prepare Your Business
At the beginning of this year, the UK introduced legislation that made it mandatory for certain products that are to be sold on the UK market to have UKCA marking. This applies to almost all products that would previously have used CE marking. Whilst the UKCA mark was introduced at the beginning of this year, the UK government will not make it mandatory until January 1st 2020 in order to give sellers and manufacturers time to prepare. Read on to find out if you need to use the UKCA marking on your products and, if so, how to use it.
What Does The UKCA Marking Mean?
UKCA stands for UK Conformity Assessed. The marking is proof that the goods in questions are up to the safety and ecological standard set by the UK.
Essentially the marking is just a replacement for the European CE mark following Brexit. Following Brexit, the EU can no longer approve the quality of goods for sale in the UK and vice versa. That is why most products that previously needed the CE marking will now need to use the UKCA mark.
So When Do You Need To Use The Marking?
As stated, almost all the products that need the CE marking will now need the UKCA marking if you wish to sell them in the UK. This means that if you sell products in the UK that already have the CE marking it is heavily advised that you seek advice to see if the products now needs UKCA marking. This also applies to products that use the ‘reverse epsilon’ marking.
The UKCA marking will only be valid in the UK, just as the CE marking will only be valid in the EU. Thus, if you wish to sell a product in both the UK and the EU it will have to have both markings – UKCA when sold in the UK and CE when sold in Europe.
If you wish to sell products in Northern Ireland these products will have to display both markings due to Northern Ireland’s dual status following Brexit.
How To Use UKCA Marking
To acquire the marking you will have to use an approved body who can grant your product UKCA marking. If you already have a provider for your CE services it is worth checking if they can offer UKCA services too.
As there are few approved bodies, it is likely that applications can take a long time to be approved. This is why it is vital to secure UKCA certification as soon as possible. The price of the service is also hard to work out, since this can depend on many factors such as the number of products you have and the regulations surrounding them. You find more information on this topic here.
Once you have acquired the marking, you will have to display it just like you did with CE marking – either on the product or the packaging. In rare cases, it can be placed on the manuals or supporting documents or the manual of the product. The marking must always be visible, at least 5mm in height and permanently attached to the product.
Conclusion – Get Your Marking As Soon As Possible
As stated earlier, due to the heavy demand it can take a long time for you to obtain the UKCA marking for a product, and you must have it by the beginning of next year. This means you should apply for to an approved body as soon as possible. Since the marking doesn’t expire, there is no harm in doing it sooner rather than later.
Hopefully this information has been helpful to you. Should you need more help, we would like to take this opportunity to remind you that our long history of working with ecommerce sellers means we can offer you expert advice.
Please do not hesitate to give us a call on or send an e-mail to enquiries@jpaccountant.com or a call on 07734182821 should you require anymore assistance regarding your UKCA marked products.
The New EU VAT Rules – Ecommerce Tips
As of yesterday, the new EU VAT rules for ecommerce are now in effect. These rules constitute a massive shift in VAT collection in the EU and certainly affect ecommerce sellers all over the world. Regular readers of our article will be well aware of these changes. Whilst we have written many articles on the topic, now seems a good time to provide you with a recap and a summary of all the main changes that the EU is implementing and advise you on how to adjust your operations.
Distance Selling Thresholds Abolished
Previously every country in the EU had its own distance selling threshold, meaning that sellers had to meticulously monitor how many sales they were making to each country. The new EU VAT rules have abolished these thresholds and have replaced them with a blanket threshold of €10,000 for every country. Below this threshold, EU-based sellers will be able to submit all their tax for the supply of goods and services to the state in which they are established.
Sellers based outside the EU will owe VAT for every sale they make into the EU. However, the IOSS will help to reduce this burden, but more on that later.
Low-Consignment Relief Abolished
The VAT threshold of €22 is being abolished, meaning that all goods imported to the EU will be subject to VAT, regardless of their value. This will be really difficult for some sellers and may mean that they will have to reassess their prices. This change has come into place as research has shown that the EU misses out on about €7 billion in VAT payments annually due to this exemption.
Online Marketplaces Now Have More VAT Responsibility
One of the main aspects of the new EU VAT rules is that the EU is now placing the responsibility on online marketplaces to collect the VAT on sales that fit a certain criteria when they are deemed to be ‘facilitating’ the trade. This obligation relates to sales that are being imported and have a value below €150 by EU and non-EU sellers alike. They are also responsible for the all the sales within the EU made by non-EU ecommerce sellers regardless of the value. Please be aware that this only applies to B2C sales. Online marketplaces will not have any responsibility when it comes to B2B sales.
For more information on what sales online marketplaces will be responsible for, and what is meant by ‘facilitating’ a trade, you can read our article on the topic here. We also have an article on using the OSS & IOSS with a marketplace.
The IOSS & OSS
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.
These two schemes are very complicated. If you want to know more, you can check out our article here which goes into much more detail. If you require assistance signing up to either of the schemes, you can contact us via the contact form at the side of the article (underneath it if you are reading this on a mobile device). These schemes are optional but are definitely recommended.
We Can Help You With The New EU VAT Rules
These rules may seem complicated but complying with them is imperative if you wish to continue trading with the EU.
As experts in tax services for ecommerce sellers, we would be more than happy to help you comply.
Our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we can guide you through every step of the registration process – so 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. In addition, 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.
How-To Guide For VAT Registration In France
All ecommerce sellers know that expanding their business to other countries is one of the most important steps to securing the future of their business. With the implementation of the new EU VAT Ecommerce Package a matter of hours away, it seems a great time to take a look at VAT registration in Europe. One of the best countries to expand your business into is France. France is the third biggest ecommerce market in Europe and should be a consideration for any ecommerce seller looking to expand their business. So, without further ado, here’s our guide to French VAT registration. You can also find our VAT registration guide for Germany here.
Why Register For VAT In France?
With an ecommerce market worth over €150 billion and 70% of the population having access to the internet, France is definitely an enticing place for ecommerce sellers. The market is only getting more and lucrative, as evidenced by the fact that the average spending of online customers in France rose from €1500 in 2015 to €2600 in 2019.
There are other factors which also make France an attractive location. One thing to consider is its geographical location. As it is adjacent to Germany, Italy and Spain, it would be reasonably easy to sell goods stored in France to any of these countries. Furthermore, the French tax authorities have recently announced that it will be offering a VAT deferral scheme to merchants who are VAT registered in France.
When Do You Have To Register For VAT In France?
The rules regarding when you have to register for VAT in France are very similar to the rules adopted by most of the European countries. If you are based outside of France, you will have to register for VAT if you hold stock in the country, provide services related to a property in France (accommodation, office space etc.), ship goods from France and, as of the 1st of July, if you are based outside of the EU and make any sales to French consumers.
If you are based inside the EU you will not have to register for VAT in France until your sales exceed the threshold of €10,000. There are other situations where you may be required to register for VAT in France. If you are unsure about whether this obligation applies to you, please use the enquiry form on the right of your screen (or under this article if you are reading it on mobile) to receive a free consultation on the topic.
How To Register For VAT In France?
You will be required to provide certain information typical of any tax registration, such as your full name and address, the address of your business and all your business’ relevant information. In terms of documentation, you will need your VAT certificate, your Articles of Association and an extract from your company’s national trade register.
All applications and correspondence must be conducted in French. These applications must be submitted to the Service des Impôts des Entreprises. For EU based merchants, you will have up to 2 months to become VAT registered in France. This deadline is shortened to a month for non-EU merchants.
Do You Need To Appoint A French Tax Representative?
If you are based in the EU you will not need to appoint a tax representative to register for VAT in France. If you are based outside of the EU you will have to appoint a tax representative except if your country residence is one of the lucky few who have signed an administrative assistance agreement with France. You can find the list of exempted countries here. If you are based in the UK, you will not need to appoint a tax representative following Brexit.
Conclusion
Evidently, VAT registration is an unavoidable step when it comes to expanding your business. This is especially true with the introduction of the OSS and IOSS service. Whilst it can be a stressful process, we are here to complete the process for you.
Our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we can guide you through every step of the registration process – so 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. In addition, 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.
World MSME Day 2021: The Most Important One Yet
The 27th of July marks the annual World MSME Day. This day is devoted to championing Micro, Small and Medium-sized Enterprises and raising awareness of the value they provide and the struggles they face. Globally, MSMEs are responsible for about 70% of employment and 50% of GDP. Bearing this in mind, there has perhaps never been a time when recognising the significance of MSMEs has been more important…
Why Are MSMEs So Important?
A lot of the owners and founders of these businesses are the innovators who push forward our society. Don’t forget, all the biggest companies in the world started off as a MSME. But the most obvious reason that MSMEs are so important is that they form the backbone of communities all over the world. Not only do they provide necessary services, they also provide jobs and livelihoods for our society. Indeed, MSMEs are responsible for the creation of 7/10 of all jobs.
This job creation is going to be vital for our planet in the coming years. It is thought that an extra 600 million jobs worldwide will be needed by 2030. This number will likely continue to rise as automation becomes more and prevalent as our workforces as more and more jobs will be filled by automatons and complicated softwares. At this time of chronic unemployment, jobs and entrepreneurship are things we need now more than ever.
The Pandemic Has Made World MSME Day Even More Important Than Ever This Year
It is obvious that the outbreak of the Coronavirus has had a disastrous affect on MSMEs all over the world. What is interesting is that the pandemic has affected different categories with varying degrees of severity. Research has shown that MSMEs ran by women, youth and ethnic minorities have been affect the most.
62% of women-led SMEs have been severely affected compared to just over 50% of those led by men. The same research also showed that women-led SMEs are 27% more likely to fail to survive the pandemic.
Regardless of the above information, it is clear that every single MSME has had to face unprecedented and extremely difficult circumstances over the last 18 months. As we are coming towards the end of the pandemic, it is important that we as a society protect our MSMEs and attempt to make them more durable for the future.
What Support Is Currently Out There?
When it comes to the UK, the government have really tried to support small businesses through the pandemic. We can see this through the schemes such as the Coronavirus Business Interruption Loan and the Coronavirus Recovery Loan.
On top of this, they have also given help in the form of training courses in order to strengthen our SMEs for the future after the pandemic.
Conclusion – Wishing You A Very Successful MSME Day
Judging by the above information, it is clear that our MSMEs need more support than ever. This could come in the form of shopping at their store or website, but also interacting with their social media or recommending them to people can go a long way in supporting small businesses.
Are you the owner of a small business or start up?
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.
The Amazon Launchpad Startup Of The Year
Today marks the opening of the public vote for who should be named Amazon Launchpad’s first ever Startup of the year. Amazon announced they were launching the competition earlier this year in order to support and champion emerging and innovative European startups. They received over 1,800 applicants from 26 different European countries who were all vying to be named as the best and most innovative startup of 2021. Amazon’s judges, who were assessing the applicants’ products on their aesthetics, social and ecological sustainability and uniqueness, have whittled the applicants down to 5 finalists. All of these finalists will receive $10,000 in prize money but only the winner, who will decided by the public vote, will receive the first placed prize of $100,000. So let’s take a look at the five finalists. Read to the end to find out how you can vote and be in with a chance of winning a £50 Amazon voucher.
Finalist Number 1: CasusGrill
CasusGrill are a Danish startup who are really passionate about the environment and promoting sustainability. This can clearly be seen in their product – also named the CasusGrill, the grill is made from cardboard, bamboo and lava rocks. The product is a green alternative to the disposable aluminium foil BBQ’s that are so popular throughout the summer.
Did You Know? Bamboo produces up to 35% more oxygen than trees.
Finalist Number 2: Callaly
Callaly was a stratup founded by a gynaecologist and garment technologist who teamed up to create a better sanitary product for women. The result was the ‘Tampliner’, a product that combines a tampon and a liner to give women added comfort and protection. The product has already been named a ‘gamechanger’ by Cosmopolitan magazine and was named as one of Time magazines best inventions of the year. Could they also win Amazon Launchpad Startup Of The Year award?
Did You Know? The average woman will spend roughly $1,500 on sanitary products in her lifetime.
Finalist Number 3: Påhoj
Påhoj is a company based in Sweden who are attempting to make it easier for parents to ride bikes with small children. To do so, they have invented the Påhoj bike seat. The seat has a dual functionality as it can be transformed into a stroller, promoting environmentally-friendly modes of transport. This product has already received a lot of admiration, as is evidenced by the fact it won baby product of the year in Sweden for 2020.
Did You Know? According to Forbes, bike riders save up to $4.6 billion a year by commuting using a bike rather than a car.
Finalist Number 4: WeWALK
The fourth brand vying for the Amazon Launchpad Startup Of The Year award is WeWALK. WeWALK’s product is an attachment for walking canes used by visually impaired people. The attachment is Bluetooth connected to an app on your phone and gives the user above ground obstacle detection, navigation and voice commands, meaning the user can use all the functions of their phone without using their hands.
Did You Know? Reduced sight affects 253 million people worldwide.
Finalist Number 5: PlanetCare
PlanetCare is another brand who has strong ambitions to transform our society to a more environmentally aware population. Their product is a filter for washing machines that stops microplastics being washed away with wastewater so they’re kept out of the ocean. The brand also continually strive for legislative rules against microplastics in our oceans.
Did You Know? 35% of all microplastics in the ocean comes from washing machines.
Conclusion – Cast Your Vote For The Winner Of The Amazon Launchpad Startup Of The Year!
You can head over to Amazon to cast your vote here. Not only will you be championing innovation, you will also be in with a chance of winning a £50 Amazon spending voucher. Amazon will be selecting random winners from those who vote. If you are lucky enough to win, you will be contacted by Amazon within 10 days of the Prize Draw period. Voting closes on 7th July and the winner will be crowned on the 12th July.
Are you the owner of a small business or start up?
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.
Extension To Lockdown Hard To Swallow For Hospitality
Many were dismayed with the news that the UK covid restrictions were going to continue for at least an extra four weeks. Whilst this might have been a good decision in terms of the safety of the public and limiting hospital admissions, it seems to have come as a real disappointment for the hospitality sector. Many venues have not been able to open for months and it is unclear how much longer they can survive without the cashflow that footfall brings. This article looks at the current state of the hospitality sector and what support is still there for them.
How Have The Lockdowns Affected The Hospitality Sector?
The Hospitality sector is a bit of a microcosm of the UK economy as a whole, which has shrank by more that 10% since the beginning of the pandemic. Hospitality has been hit harder than many other industries because of the fact that it relies so heavily on footfall. Whilst other sectors have moved their business online, for venues such as nightclubs this is impossible.
Indeed, it is thought that 1 in 4 hospitality venues have had to remain shut and many of those that have opened are operating at a loss. This is partly why this latest extension to the lockdown restrictions has come as such a blow to the sector. It is thought that this extension could cost the Hospitality industry roughly £3bn. Many establishments have already bought stock, sold tickets and hired staff in preparation for the reopening which will now go to waste.
What Government Support Is Available?
One of the main factors that has caused anger for the Hospitality industry is the fact that the extension hasn’t been accompanied by any further support from the UK Government. Industry leaders have pleaded for additional support, but it looks as though the UK government believe that the support they already have in place is sufficient.
In fairness, all the current support will stay in place. This means that the sector will continue to benefit from the reduced VAT rate of 5%. This initiative was extremely well received when it was first announced. On top of this the Recovery Loan Scheme and the furlough scheme are still available for business owners to use.
However, there are certain things that the government could do in order to help these businesses. One example is the fact that the government payments for the furlough scheme were set to begin tapering off in July. It would obviously be a big help to these businesses if this date was pushed back by a month or more.
There may be more support available to these businesses that they have not yet taken full advantage of from their local councils. You can find our article on this additional support here, with instructions on how to apply also.
Conclusion – The Pandemic Is Still Taking Its Toll On The Hospitality Sector
As you can see, there is still some way for the hospitality sector to go before it has completely recovered from the pandemic. Hopefully, the government will announce some further support in the coming weeks, or at the very least an extension to the current support.
Is your business struggling with the implications of the pandemic? Why not contact us so we can help?
At J&P, helping small businesses 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 the Coronavirus crisis and to keep you up to date with all the latest Government guidance and support, so please do not hesitate to give us a call on 07734182821 or send an e-mail toenquiries@jpaccountant.com to receive help managing your business through the end of lockdown.
