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The Changes To Amazon Fulfilment Coming In June
Why Are Amazon Making Changes To FBA Now?
You might be wondering why these alterations are only being implemented now, as opposed to the beginning of the year like usual. Amazon delayed these fee changes in order to support sellers through the coronavirus. Amazon invested heavily in FBA throughout the pandemic in order to keep up with the huge increase in demand for ecommerce. Since the coronavirus first became worldwide, Amazon have increased the square footage of their Fulfilment and logistic network by 50%. They even hired over 400,000 new staff. You might think that the massive investment and expansion of Amazon’s Fulfilment network would have resulted in massive changes, but this is not the case.What Are The Changes To Amazon Fulfilment Fees
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.FBA Removal Fees & Storage Fees
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.Conclusion – Minor FBA Changes, But Be Prepared
The fee changes to Amazon FBA are minimal on the most part, but sellers should definitely be aware of them in order to maintain profit margins. Ensure to check the new weights of all your items and adjust your profit margins accordingly. Also, don’t forget to make sure you have removed all your unfulfillable inventory before June! 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 UK & EU VAT, the UK VAT deferral scheme, EU and UK EORI number, file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues. So please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
VAT Registration In The UAE: A Complete Guide
The UAE is one of the best places for sellers to expand their business. After the EU, the UAE is the UK’s 4th largest export destination and enjoys 40% of all the UK’s trade with the GCC. With a thriving economy that is growing rapidly, the UAE represents a market that is overlooked too often by foreign sellers. This is likely due to the fact that they only introduced VAT relatively recently and so many exporters are apprehensive about attempting to register for VAT there. However, we at J&P are one of the few accountancy firms that can help you get VAT registered in the UAE. The process is not as difficult as you might think, since we do all the heavy lifting for you. This article will outline how and when to get registered for VAT in the UAE, and how we can help.
UAE VAT Requirements
The current rate of VAT in the UAE is 5%. For resident companies, they only need to register for VAT if their annual sales exceed AED 375,000, or are likely to in the next 12 months.
However, assuming you are a foreign seller, you will have to register for VAT in the UAE if you make any taxable sales there. You will also be required to follow the usual VAT requirements (submitting tax returns, charging for VAT etc.). You must ensure you are registered before making sales, as there is no implementation period.
Some products and services are exempt from VAT such as certain financial services and pharmaceutical products. Be sure to check diligently whether this applies to your product before attempting to export into the UAE.
How To Register For VAT In The UAE
The registration process follows the standard requirements in terms of the information you need to provide. This means basic information like business name and address will be required. Before beginning the application you will also need to create an account on the UAE’s online portal. The application can be filled in in English or Arabic.
As mentioned earlier, the UAE do not take kindly to late submissions, and you can face penalties if your application is late or faulty. The other issue is that, like with all GCC states, you must appoint a fiscal representative in order to export to the UAE.
Luckily, we at J& are experts when it comes to VAT registration and compliance in the UAE and can help you with the process, as well as filing your tax returns. We even have our own fiscal representative in the UAE which means you will not have to find one yourself. Get in contact today for a quote so we can help you expand your business into the UAE.
Other Requirements For Exporting Into The UAE
In order to get your goods through customs you will also need to present a Arab Certificate Of Origin. These certificates are used to confirm where your products are wholly obtained or manufactured. This document must also be in Arabic. Again, this is another service that we can help you with.
With certain products you must also check that reach the standards of the ESMA (the UAE body that sets standards on products going into the UAE). You must always check for any new standards or quality marks required before exporting into the UAE.
Conclusion – VAT Registration In The UAE
So as you can see, whilst the process of registering for VAT in the UAE can be difficult, through employing our services the process is made much simpler, and you can expand your business into one of the fast growing ecommerce economies in the world. You should also take a look at our guide for getting VAT registered in the KSA.
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. Furthermore, your expansion does not only have to be limited to the Middle-East, as 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. So please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or give us a call at 0161 637 1080.
Attention eBay Sellers: eBay Changes In 2021
2021 has been a stellar year for eBay. As their first quarter earnings release is imminent, it seems the perfect time to take a look at some of the recent changes the online marketplace has made in response to feedback from their sellers. If you are an eBay seller you should definitely be making the most of these new changes. Also, don’t forget that we at J&P help countless eBay sellers each year expand their business, so get in contact if there are any tax-related or logistical services we can help you with. Without further ado, let’s talk about eBay’s new changes, and how you can optimize your listings.
eBay Replace Fast ’N Free With New Postage Message
The Fast ‘N Free badge has been a staple on eBay for almost 10 years now. The badge allowed buyers to see which items could be received in 3 days. When the badge was introduced in 2012, this was considered quite quick – ecommerce sellers will know that this is now considered standard.
In order to respond to consumer demands for faster deliveries, eBay have replaced the badge with a simplified postage message which simply informs the buyer as to whether they can expect their item in one, two, or three days.
This makes eBay itself a more attractive platform for users, and thus your listings will be exposed to more eyes. If you can offer deliveries faster than 3 days then be sure to update your listings.
Improvements Made To eBay Promoted Listings Ads
Essentially, eBay have given sellers the ability to make their ‘promoted listings ads’ automated. The promoted ads work by charging the seller a percentage of the sale price when a buyer purchases an item within 30 days of clicking on the ad. The fee for the sale will be calculated based on the ad rate that was live when the ad was first clicked.
Now, sellers have much more control over their ads. In order to protect profits, eBay sellers are now able to set ad rate caps and view suggested ad rates. The hope is that the new feature will allow eBay sellers to ‘set and forget’ their ad campaigns. This will undoubtedly lead to a more productive ad system.
Seller Access To Research Data Expanded
Previously, eBay’s Product Research Tool was only available to sellers who had a paid subscription to an eBay store. As of this month, the tool is now available to all sellers.
This is arguably one of the biggest changes to the platform. Insights are invaluable for sellers to find out what is selling and for how much, in order to adjust their own listings. The insights are even as detailed as to what percentage of your competition is offering free shipping.
If you are selling on eBay, you should definitely be making the most of these insights and editing your own listings accordingly.
eBay Introduce Coded Coupons
Another interesting change is the introduction of coded coupons. This feature will allow sellers to create their own coded coupons in order to share discount codes for their products. There is quite a lot of freedom for sellers to decide how they want to share the code. Once created, sellers can either opt to share the code privately with existing customers, or publicly on the platform itself.
The feature is available through Seller Hub Promotions to all who are shop subscribers. The system is easy to use as you simply create a code and select the products you would like to discount. You are guided through the process step-by-step, so don’t be apprehensive about trying out this new feature!
Future Changes?
There is likely to be more changes through 2021. One change we already know that is coming is video capabilities for listings and storefronts. Already available in the USA, this feature will allow you to add videos to your image galleries. Making the most of innovations like this will really help your listings stand out.
In order to stay up to date with all the latest eBay changes, be sure to follow our social channels.
To Conclude, Make Sure You Are Making The Most Of The New Features
These changes are really indicative of the amount of work eBay are doing to offer sellers a better selling experience. If you use all the above features to their full potential, you will almost certainly see a considerable increase in sales and profits. Before you go, be sure to check out the changes that Amazon have made in 2021.
Don’t forget our long history of working with eBay and Amazon sellers means we can offer you expert advice, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com. We would be more than happy to help you register for UK & EU VAT, the UK VAT deferral scheme, EU and UK EORI number, file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues. We can even offer storage and warehouse support!
Call Off Stock: The Last Unturned Stone After Brexit
Over the last 18 months, you’ve no doubt been inundated with news about Brexit. Whilst almost every aspect of the deal has been thoroughly dissected and discussed, one aspect of the rule changes that appears to have gone under the radar is the changes to the call off stock simplification and the treatment of consignment stock. Even to this day there seems to be a lot of confusion amongst business owners and those who use warehouses as to what has changed. In order to dispel any confusion, this article will explain exactly what call off stock is, the differences between it and consignment stock, and what has changed since Brexit.
The Differences Between Call Off Stock and Consignment Stock
Differentiating between call off stock and consignment stock can sometimes be difficult. Essentially, both involve a business or trader keeping their stock in another country in order to distribute them more efficiently to customers. However, there is a fundamental difference.
Call Off Stock
Call off stock is where you are giving your stock to a single client who is holding the goods in their warehouse and is intending to sell them on or use them internally but you still maintain ownership of the goods.
For example, if an Amazon seller wanted to sell on your products, but they wanted to hold them in their own warehouse and be responsible for stock levels and could move them when they pleased, this stock would be considered call off. In this scenario you would not have had to be registered for VAT in the country where the goods were being stored, but the seller would have had to be.
Consignment Stock
If the stock is being held in a warehouse that is your own, this will be considered consignment stock. Whereas call off stock is designated for one customer (from your point of view) consignment stock will be available to multiple potential customers. As you would have likely been selling the stock to local customers, you would have been required to register for VAT.
So What Has Changed Since Brexit
The short answer is everything. The call off stock simplification no longer applies to UK sellers holding stock in the EU, or vice versa. Any business who imports into the UK must now register for UK VAT to make domestic supply. This also goes for UK businesses selling into the EU. You also must register for VAT wherever you are storing the goods. This includes Amazon fulfilment centres.
Of course, this also means now that regardless of whether you make a sale or not, you cannot store consignment stock in another country without registering for VAT.
What About Stock That Was Considered Called Off Pre-Brexit?
If you had call off stock in place before Brexit the simplification is still valid and you will not have to register for VAT. However, this only applies for the first 12 months of the stock being considered called off. In other words, if you had created a call off stock agreement in December of last year, you will have until December 2021 until it is no longer considered called off stock. Once this happens, if you wish to keep the inventory stored in which ever country it is stored in, you will have to register for VAT in that country.
Conclusion
Hopefully this article has helped you understand the effect of Brexit on your stock. The key thing to remember is that you must register for VAT wherever you hold you stock, and any call off stock arrangements you had prior to Brexit will still be considered as called off stock, but only for 12 months after the beginning of the arrangement.
Inventory and warehouse management has never been more difficult. But don’t forget that we are able to help.
At J&P, we can offer our warehouse services to businesses and ecommerce sellers in the UK and EU. If you manage an inventory, we just want to let you know that we have the qualifications and knowledge to help you plan ahead. Please do not hesitate to get in touch should you have any further questions about warehousing or logistics and supply chain management. You can contact us at enquiries@jpaccountant.com, or give us a call on 0161 637 1080.
EORI Number: Step 1 For Trading With The EU
What Is An EORI Number?
EORI stands for Economic Operator Registration and Identification number and, as stated in the introduction, this an identification number that allows you to be identified by customs. Whilst this is not the same as a VAT number, it is similar as the EORI allows all your transactions to be identified as your own, making it easier for you calculate import VAT. The number itself begins with the two-digit country code in which you are registered, followed by a unique 12-digit code. If you or your business traded with the EU before Brexit you may already have one. You can check if you do by using the HMRC’s checking system.Do You Need One?
Everyone who moves goods between the UK and the EU for business purposes must obtain an EORI number. This includes sole-traders and those who are self-employed. These numbers are absolutely essential and failure to obtain one before trading could result in severe punishments. If you are unsure as to whether you are obligated to get an EORI number, contact us today. We are able to help our clients acquire an EORI number in an extremely timely manner.Special XI Number For Northern Ireland
Traders will need to use an XI number for moving goods between Northern Ireland and the EU, In order to differentiate them from standard GB transactions. This is because of the different tax rules for goods in Northern Ireland due to its post-Brexit dual status as both part of the UK and EU. For more information on trading with Northern Ireland post-Brexit, click here. For UK traders, you simply have to change your country code at the beginning of your EORI number from GB to XI. Traders from elsewhere are also able to do this, but they must have a UK EORI number first. The HMRC should automatically issue XI numbers to Northern Ireland-based businesses, or those who they believe will have a lot of interaction with Northern Ireland.What Do You Need To Apply For An EORI Number?
Assuming you are already VAT registered, you will need to provide information about yourself and your business. This information includes:– Full name– Contact details– Occupation/position– You or your company’s VAT registration number– VAT address– VAT registered nameThe HMRC runs the application process. In order to complete the process you will need to create a government gateway user ID if you don’t already have one. Some additional information may also be required, such as your Unique Taxpayer Reference. The application process can be tricky, as the HMRC are extremely strict with applications and will reject an application immediately with any incorrect information. We at J&P do offer the obtainment of an EORI number as one of our services. When you register for VAT with us we also ensure we inform you about the EORI number and make sure you have fulfilled all the relevant obligations in order for you to begin trading!Need Help Applying For An EORI Number?
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 register for an EU and UK EORI number. 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.
The Coronavirus Restart Grant: Support For UK Hospitality
April has seen the UK enter a new stage of the lifting of lockdown restrictions – there is light at the end of the tunnel! There is more good news for businesses, as April also marks the introduction of the Government’s latest business support scheme – the Coronavirus Restart Grant. The grant is available to businesses that are allowed to reopen from April, such as those in non-essential retail and hospitality. The amount that businesses are entitled to could rise up to a one-off payment of £18,000, depending on the size and sector of the organization. Whilst not everyone will be eligible to receive the grant, don’t despair. This article will also cover some other support that the Government have made available to businesses that don’t qualify for the Coronavirus Restart Grant. So, read on to find out how you can restart your business.
The Effect Of The Pandemic On Hospitality
Whilst the Coronavirus has affected every industry, perhaps none have felt its affect more than the hospitality and leisure sectors. Restaurants, pubs and gyms were forced to closed for large parts of last year, and even when lockdown restrictions were lifted, the vast majority of these establishments saw a sharp decrease in footfall.
The government has recognised this and has provided these sectors with support throughout the pandemic. As well as the various schemes that every business has had access to (read our articles on these schemes here and here) the hospitality sector is going to benefit from a decrease of VAT to 5% until September this year. From September, VAT will be increased, but only in instalments.
The Coronavirus Restart Grant is the latest effort from the government to ensure that we don’t lose anymore businesses in this sector as we lift lockdown for, what we hope, is the last time.
What Exactly Is The Coronavirus Restart Grant?
The Coronavirus Restart Grant was announced in March’s budget announcement, in which Chancellor Sunak announced that the Government will be making £5 billion available to businesses in the hospitality, accommodation, leisure, personal care sectors. Distribution of the grant will be led by local councils and is said to be available to over 700,000 business owners. This grant will be replacing the Local Restrictions Support Grants.
How much you will be entitled to will depend on the value of the property your business operates on. For non-essential retail the thresholds are as follows:
Value of £15,000 and under are entitled to £2,667.
Value between £15,000 and £51,000 are entitled to £4,000.
Value of £51,000 and over are entitled to £6,000.
If your business falls under the umbrella of hospitality, accommodation, leisure or personal care, your thresholds are as follows:
Value of £15,000 and under are entitled to £8,000.
Value between £15,000 and £51,000 are entitled to £12,000.
Value of £51,000 and over are entitled to £18,000.
Who Is Eligible For The Coronavirus Restart Grant And How Can They Apply?
Any business that operates in any of the aforementioned sectors can apply. However, they must be based in England, be rate-paying, and still be trading as of the 1st of April 2021.
The application process is open now through your local council and you can check your eligibility and be directed to the application process here.
If your business has been negatively affected by the pandemic but it is not eligible for the grant hope is not lost. The Government have made almost £450 million available to local councils to distribute to businesses who fall outside the parameters of the grant, but still need support. Again, to receive this funding, contact your local council, or get in contact with us here at J&P so we can help.
Conclusion
Hopefully, this grant will get many businesses over the finish line of the pandemic. This has been the hardest period ever for most businesses, but support such as the Coronavirus Restart Grant could really make the difference.
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 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com to receive help managing your business through the end of lockdown.
