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Ebay To Remove Final Value Fee Volume Discounts
“We want to share some news with you about an update to fees which will affect some sellers.
From 20 March 2022, business sellers will no longer be eligible for final value fee volume discounts. This will only affect you if your total sales volume has been at least £25,000 in the previous three months.
This change will take effect for all sales from that date onwards, regardless of when the item was listed, relisted or renewed.
You can get more information about business seller fees here.
Thank you for selling with eBay.
– eBay
The above announcement from Ebay will be received with a mixed reception for Ebay sellers. For those below the threshold of ‘high volume’ sales, the announcement will be viewed as a long overdue levelling of the playing field. For those above the threshold, this will seem like the rug has been pulled out from beneath them. Let’s take a look at how the removal of final value fee volume discounts will affect Ebay sellers.
What Are Final Value Fee Volume Discounts
Essentially, final fee volume discounts were a discount to Ebay fees granted to sellers who had a significantly high turnover. Those who had a turn over that was over £25,000 a month were privy to a 4% discount, and those selling over £200,000 a month were granted a discount of 8%. However, from the 20th March 2022 this will no longer be available to sellers.
By ending the discounts to fees smaller sellers will probably argue that Ebay are no longer showing favouritism towards their bigger sellers and thus they might see the abolishment of the discounts a fair. However, those who were benefitting from the discounts will understandably be incensed by the increase of almost 10% on to the cost of their operations.
How Will This Affect Ebay Sellers?
If you are an Ebay seller and your turnover falls far below the thresholds then it is likely that this latest developments regarding final fee volume discounts will be of little consequence to you. As this makes up the majority of the sellers on Ebay, this may lead you to believe that the change to procedures is of little consequence. However, nothing could be further from the truth.
By removing the discounts, Ebay are effectively disincentivising their sellers to grow their sales. Obviously, the discounts had previously been a big incentive for sellers to increase their sales to benefit from the discounts. It is possible that sellers will now prioritise sales on their own websites, since they don’t have to pay any fees to Ebay for these sales so there is a high profit margin on these transactions.
Conclusion – We Specialise In Supporting Ebay Sellers
As usual, 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 a trusted member of the Amazon Service Network, we can act as a third-party service provider for the Amazon VAT service.
As well as helping with your Fulfilment, we would be more than happy to help you register for the OSS and help you with all your VAT compliance needs 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 for a quote today.
Delays At UK Ports Likely To Increase
MPs are warning that we could see more delays at UK ports later in the year if the government does not act quickly. This is in light of the increased border checks that will be coming into force from the 1st of July. Despite the government having offered a lot of Brexit advice so far, we are still witnessing many delays at ports. Obviously, the stricter rules surrounding agricultural products coming into force from July will not help the situation.
Brexit Continues To Cause Disruption
If you are an ecommerce seller, you are probably more surprised that certain circles have tried to claim that congestions at ports have lessened at any point since Brexit than the fact that the congestion is likely to increase. We have received countless complaints from our ecommerce clients that supply chain issues are still affecting their operations, despite the fact that it has been over a year since Brexit.
Of course, the pandemic has to take some of the blame for these delays, but the fact still remains that Brexit has had a massively negative affect on the importing and exporting of goods between the UK and EU. Ecommerce sellers and importers alike are clamoring for more support from the UK government, a sentiment that is echoed by Logistics UK.
Extra Border Controls From July
Undoubtedly, the news of further checks will be met by groans from many. From 1 July extra checks on agricultural and food imports from the EU will take place at ports around the UK, but with products varying from cut flowers to ready-made lasagne, firms need to know which ports will be authorised to process which products, what the operating hours will be and how they fit with ferry schedules, Logistics UK has said.
The long term issue with this is the amount of businesses that are simply ceasing to trade with the EU. The burden of admin and red tape has meant that trade between the UK and EU continues to drop. Whilst the task of trading with the EU does seem more daunting than ever before, it is still possible. Especially when you employ the services of experts; which is where we at J&P come in.
Contact Us Today
If you are a business who participates in cross border e-commerce, or exporting of any kind, we would be more than happy to help you register for UK VAT, the UK VAT deferral scheme, gain an EU and UK EORI number, 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 Brexit, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
Guide To VAT Registration In The Netherlands
Keen readers of our articles may remember that we have previously looked at VAT registration in many EU countries such as Germany and France. These are countries that have extremely strong ecommerce markets and in order for sellers to make the most of the opportunities that these countries represent, VAT registration is an unavoidable step. This is why we’re now taking a look at one of the fastest growing ecommerce markets in Europe. As promised from our previous article which focused on why you should consider expanding your business in to the Netherlands, this article will focus on how to register for VAT in the Netherlands.
Why Should You Register For VAT In The Netherlands?
As this was the main focus of our previous article, we won’t dwell for too long on this topic. Essentially, the reason that the Netherlands is such an attractive prospect for ecommerce sellers is the fact their online economy is one of the fastest growing in Europe and one that is relatively easy to access. Traditionally there has been a hesitation for the domestic consumer-base to shop from foreign sellers, but this is a trend that is no longer applicable.
In addition to this, Amazon is an emerging force in the Netherlands. Surprisingly, Amazon is not completely dominant in the Netherlands as it stands, although this is quickly changing. The majority of sellers on the Dutch version of Amazon are from abroad. That is why now is a great time to register for VAT in the Netherlands, before the market becomes saturated.
When Do You Need To Apply For VAT Registration In The Netherlands?
As with most of the EU countries, the Netherlands have a pretty typical set of rules when it comes to VAT registration for sellers. If you are sellers based in the EU, you will only have to register for VAT in the Netherlands if your sales exceed the sales threshold, which stands at €100,000. However, if you are a seller from elsewhere, such as the UK, you will need to apply for VAT registration in the Netherlands if you hold or sell goods there.
As with other EU countries, please be aware that this also applies to Amazon sellers. This also includes holding goods in a Dutch Amazon FBA warehouse. Essentially, if you are based anywhere outside of the EU, you will have to obtain a Dutch VAT registration number if you hold goods or make taxable sales in the country.
How To Register For VAT In The Netherlands?
As you might expect, the Dutch tax authorities require all the usual relevant information. This will include the VAT certificate of the business, an extract from the company’s national trade register and the Articles of Association. This information should be submitted the Dutch tax office.
UK sellers will be happy to learn that a fiscal representative is not required to complete the VAT registration process in the Netherlands – even after Brexit. However, it is obligatory to appoint a fiscal rep when attempting to use the reverse charge mechanism for the purpose of import into the Netherlands.
VAT Reporting In The Netherlands
Typically, you will have to file VAT returns quarterly in the Netherlands. These returns must be submitted to the Dutch tax office and, in certain circumstances, these must be submitted on a monthly basis. This is only in certain circumstances though, such as if the quarterly VAT payments exceed a certain figure. Of course, it is always best to employ the services of tax professionals when it comes to filing VAT returns. This is where we come in.
Conclusion
Evidently, VAT registration is an unavoidable step when it comes to expanding your business. Whilst it can be a stressful registration 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.
Ecommerce In The Netherlands: Time To Expand?
The Netherlands is an interesting place when it comes to ecommerce. On the one hand, the country has been thought for a long time to be a place which favours buying from domestic sellers. On the other, it is well known that ecommerce in the Netherlands is considered to be one of the fastest-growing and most exciting markets in the world. Whilst the purchasing decisions of the Dutch population has put UK sellers expanding to the Netherlands in the past, this trend seems to be changing as the Dutch become more open to cross-border ecommerce. There has never been a better time to register for VAT in the Netherlands.
Dutch Ecommerce Grew 24% In 2021
Once again, last year saw ecommerce in the Netherlands enjoy yet another year of growth. Dutch online turnover grew by almost 25%, which is staggering when you consider that 2020 was the year of ecommerce because of the effects of the pandemic. Due to the lockdowns, many brick-and-mortar stores had to close for several months in 2021. Dutch consumers placed more purchases online, which is evident in the lower turnover growth of brick-and-mortar stores.
What is slightly strange was that Dutch ecommerce only saw a 2% growth in December. This is surprising since ecommerce normally flourishes in December as people buy gifts for the holiday season. This could possibly have wider implications than just merely the Netherlands. Perhaps consumers are finally beginning to spread their holiday shopping out across the year.
Most Sellers On Amazon.NL International
Part of the reason for the Netherlands’ ecommerce growth is the fact that international sellers are gradually making their way into the Dutch ecommerce market. This is most evident when looking at the Dutch version of Amazon, where Dutch sellers are actually in the minority. Dutch sellers make up 2% of the sellers on Amazon, whereas most sellers on the platform are from China (59.5%), followed by Germany (11%) and the UK (5.8%). There are also sellers from Italy (4.4%), Spain (3.2%) and France (2.6%).
Another interesting fact is that these Dutch sellers tend to use their own logistics rather than Amazon FBA. This means that the FBA service in the Netherlands is far from crowded. Whilst Amazon is not entirely dominant in the Netherlands yet, you would not bet against them being the dominant ecommerce platform in the next few years. Sellers would be wise to become established on the platform before the market becomes too crowded.
Have Any More Questions Regarding Amazon Netherlands Or Dutch Ecommerce?
If you are wondering how to get registered for VAT in the Netherlands or how you can set up on the Dutch version of Amazon, don’t worry as this will be the focus of our next article later this week.
If you are new to Amazon seller central, or indeed in case you have any questions about selling via Amazon Netherlands, please do not hesitate to get in touch – we work with Amazon sellers across the globe and can assist you with any queries you have. Please give us a call today on 0161 637 1080 to speak to one of our advisors. Alternatively, you can write us an email to enquiries@jpaccountant.com.
What You Need To Do For The Plastic Packaging Tax
As you may remember from earlier this month, we released an article reminding you about the upcoming UK Plastic Packaging Tax that will be introduced from April 2022. This is a tax that all those involved in supply chains should be aware of as it will affect anyone who imports using plastic packaging. We’d like to think our previous article gave a pretty clear explanation of what the plastic tax is, but we realized that we didn’t necessarily give you advice on what to do to prepare for the tax. This article will hopefully rectify this.
What Is The UK Plastic Packaging Tax?
The UK Plastic Packaging Tax will come into force on 1 April 2022. The new tax will apply to plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic. Please be aware that this percentage refers to weight rather than surface area, and also applies to all plastic packaging that is imported into the UK, whether it is filled or not.
Those who may be affected should also be aware that this tax will apply to anyone who has imported over 10 tonnes of plastic packaging in the last 12 months, or expects to do so within the next 30 days. Please also note that the tax rate is set to be £200 per ton of plastic packaging.
What Do You Need To Do About The Plastic Packaging Tax?
The first thing you will need to do if you think there’s a chance you will be affected by the tax is to research the new tax. There is a chance that this will incur an initial cost if you seek professional advice, especially if you have to train yourself and/or your staff on complying with the tax. Even if you are a company who is no longer liable to pay the Plastic Packaging Tax, you will have to keep records in order to prove that you are not in scope of the tax.
In addition to these costs, there is of course the unavoidable cost of tax filing and the payment of the tax itself. In these cases, it is best to employ the services of tax experts, such as ourselves at J&P, to guide and you assist you through the process. You should also be aware that you could have joint or secondary liability for your suppliers if they do not comply to the tax so checking on your supply chain partners would also be wise.
Failure to comply with the Plastic Packaging Tax will incur an initial fixed penalty of £500, followed by a daily charge of £40. This will chargeable for failure to register and failure to submit acceptable returns.
The Imminent Plastic Tax Makes Sustainability Even More Urgent Than Ever
The Plastic Packaging Tax will surely act as an extra incentive for UK merchants to reduce their use on non-recycled plastic. Find out more about the incoming plastic tax by following the link to our previous article.
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 your processes.
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 logistic and ecommerce 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.
Shopify Has Grown By Over 200% In Last 24 Months
As you may have noticed, many of our recent articles have focused on the healthy nature of ecommerce at present. As if you needed more evidence, recent research has shown that amount of Shopify stores worldwide grew by 200% over the course of the pandemic, as entrepreneurs looked to capitalize on the needs of consumers as brick-and-mortar stores were forced to close. As Shopify is one of the leading ecommerce website platforms, it is no surprise that fledgling business owners flocked to the platform.
What Is Shopify?
Shopify is a platform used to create websites, much like WordPress or Wix. However, the thing that sets Shopify apart is the fact that it has been specifically designed to support ecommerce sites. This means that uploading products to a site is relatively straightforward and the site comes ready-made with tracking and analytics capabilities.
Thus it is no wonder that the popularity of the platform has shot up over the last 24 months. The platform has attracted over 2 million new businesses over the last 2 years, with most of the stores sprouting up in the US and the UK. However, the country which has seen the most growth is Germany, where there has been an increase of over 400%. This is indicative of Shopify’s global appeal.
Who Is Opening Online Stores On Shopify?
For the most part it is small businesses that are opening up on Shopify. These sites are typically made up of Amazon sellers or new business owners. In terms of where these users are from, there is perhaps no surprise that the US has the most amount of Shopify users by a distance. There are over 2.5 million Shopify stores based in the US. This dwarves the UK, the second highest country, who have just under 160,000 Shopify stores.
Platforms such as Shopify are best suited to these smaller ecommerce sellers. In order to compete with bigger competitors in the market, these sellers must be willing to focus on customer satisfaction by placing an emphasis on key factors such as deliveries and returns. Shopify is a great place to begin for these sellers since a user-friendly website can go a long way in securing a customer.
How To Get Started On Shopify
It is pretty simple to get started on Shopify. Whilst we won’t provide a full guide here, there are some useful tips you should know. Before signing up for the service and creating a new site, you should make sure that you add your entire inventory to the online store and identify your most successful products ahead of launch, so you can make special pages for these key products.
You should also have all your shipping settings in order and tax settings. Shopify stores can be easily translated into other languages, meaning you can sell to customers across the globe. However, this obviously requires your tax obligations to be completed beforehand. As experts in VAT registration for ecommerce sellers who are looking to expand their business, this is the part of the process that we would be more than happy to assist with.
We Can Help You Expand Your Business
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.
