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Why You Should Register For VAT In Germany
The third quarter of 2021 has seen German ecommerce enjoy a growth of 14.8%, with total sales amounting to more than €22 billion euros. This growth is especially impressive considering that the third quarter is traditionally the one where we see the least growth for ecommerce. Regular readers of this blog will know that we often champion VAT registration in Germany and, with the German ecommerce market generating this amount of growth, it is easy to see why. Let’s take a look at how ecommerce in Germany is thriving and how you can take advantage of the opportunities that the German ecommerce market creates.
Despite Physical Stores Reopening, German Ecommerce Still Thrives
Both the online sales of products and sales of online services grew in the third quarter (14.% and 14.3% respectively) despite physical stores reopening and lockdown ending. This goes against predictions earlier in the pandemic which suggested that ecommerce growth would slow down once traditional brick-and-mortar stores reopened.
Whilst the sceptics among you may think it is too early for claims that the surge in ecommerce is here to stay, the evidence is mounting. Countries all over Europe, such as Germany, the UK and France, are still seeing growth in their ecommerce industries. Since the fourth quarter is always the strongest, due to the holidays, it is likely that German ecommerce will be worth over €100 billion euros for the first time by the end of the year.
Who Is Benefitting From The Most Growth?
Perhaps unsurprisingly, omnichannel retailers have seen the strongest growth this quarter. This is obviously due to the fact that they are able to benefit from both online and in-store sales. What is interesting, however, is that these retailers are apparently finding that consumers would still rather order online. As we advised at the beginning of the pandemic, it is definitely seeming as though those who diversified their selling channels at the beginning of lockdown are now reaping the reward.
Sellers on online marketplaces have also enjoyed growth of around 15% in the first quarter. It is believed that this will mean that sales from online marketplaces in Germany will surpass €10 billion euros in every quarter in 2021. This will be the first year that this has happened.
So Should I Expand My Business To Germany?
As stated in the introduction, would definitely advise any ecommerce seller to expand their business to Germany. Not only does it have the strongest ecommerce market in Europe after the UK, its central position on the continent means that it is strongly situated should sellers wish to expand deeper into Europe in the future.
In addition, if sellers act now they can certainly benefit from the surge that we will likely see in the fourth quarter. The fourth quarter is always the strongest and with sellers keen to splurge this year after several Christmas’ in lockdown, this quarter promises to be special.
So How Do I Register For VAT In Germany?
For more information on registering for VAT in Germany, we would like to advise you to read our how-to guide for registering for VAT in Germany. However, in short, the registration process in Germany is similar to that of other European countries. The application will need to be processed in German, you will need a fiscal representative if you are not from an EU-state, and yu will need to provide all the relevant details of your business.
There is an additional requirement that Amazon sellers should be aware of and this is the F22 certificate. If you use a facilitating online marketplace to make sales in Germany, such as Amazon, you will have to acquire a F22 certificate. This certificate essentially just confirms that you are VAT registered, and you will have to show it to the online marketplace that is facilitating your sales.
Should You Wish To Register For VAT In Germany, We Can Help
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 German VAT registration process. The process is notoriously difficult compared to other EU countries, 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
Postponed Import VAT Accounting: Our Guide
As you will undoubtedly know, importers and business owners have really struggled to wrap their heads around the post-Brexit rules regarding importing. One area of confusion has been the implementation of Postponed Import VAT Accounting (PIVA). Whilst this mechanism actually benefits importers greatly, many are unsure of how to use it and how to access their postponed accounting statements. We’ve put together this guide to ensure that you can make the most of the PIVA mechanism. Before we begin, we’d just like to remind you that if you require any support with importing or accounting we can be of service. At J&P, we are experts in supporting sole traders and SMEs, so get in contact today!
What Is Postponed Import VAT Accounting (PIVA)?
Postponed Import VAT Accounting was introduced at the beginning of 2021. The system was created with the intention of making the transition from Brexit easier for importers. To sum it up as succinctly as possible, PIVA basically allows importers to defer the payment of their import VAT that they would normally pay at customs until they have to submit their VAT returns. This means they are then able to ‘pay’ their import VAT and reclaim it at the same time. Thus they don’t actually have to pay the physically pay the VAT.
The government are hoping that the introduction of Postponed Import VAT Accounting will ease the cashflow issues that importers might have faced following Brexit. It would certainly make sense for any business or trader who imports regularly to use to the system.
Do You Need To Apply For Postponed Import VAT Accounting?
You don’t actually need to apply to use PIVA. If you wish to postpone your import VAT, you just have to make sure that you declare it on your VAT return. This option is open to all VAT registered businesses in the UK as long as you provide your EORI number and VAT registration number at customs. The mechanism is optional, so if you want to pay import VAT the normal way (upfront at customs) you can do so.
However, please be aware that the use of postponed VAT accounting is obligatory if you defer any customs declarations. This includes any deferred declarations made during the 6 month customs deferred declarations period following Brexit.
How Do I Get A Postponed Import VAT Statement?
Those who wish to use PIVA should be aware that they will need copies of their monthly postponed VAT statements to complete their VAT returns correctly. You can download your statements by going to the ‘get your postponed import VAT statement’ page on the gov website. You will be required to log in to your Government Gateway account to access the statements, as this log in is linked to your EORI number.
You can also access your statements via the Customs Declaration Service (CDS). If you go to your CDS financial dashboard you should be able to view and download your postponed VAT statements. You can apply for access to the Customs Declaration Service here.
Conclusion
This guide provides an overview of how to postpone your import VAT post-Brexit, but there are many rules that apply to individual products. The best you can do as an importer is make sure all your identification and documentation is in order, as well the documentation of your exporter, and consider appointing experts to help with your VAT and customs.
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 UK VAT, the UK VAT deferral scheme, 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.
Register For VAT In The EU
Registering for VAT in the EU is one of the most important steps to empowering your global ambition. Unfortunately for ecommerce sellers, cross border sales have never been harder since Brexit and the outbreak of the pandemic. Fortunately for ecommerce sellers, we’re here to help. Regular readers of the blog will know that we have provided guides for registering in multiple countries, so this article is just going to serve as a centralized place for these guides. You will find them in their individual sections, as well as some advice regarding the OSS and IOSS.
Registering For VAT In Germany
Since Brexit, Germany certainly seems to be the most popular destination for UK sellers to register for VAT in Europe and it’s easy to see why. Germany currently has the second biggest ecommerce economy in Europe, estimated to be worth roughly €80 billion – a figure which is expected to rise to around €140 billion by 2024.
if you are a seller from the UK or anywhere else outside of the EU, you will have to register for German VAT if you want to make any sales to consumers located in Germany or if you want to hold stock in the country. For you Amazon sellers, please note this also includes holding stock in an FBA warehouse. It is vital to employ the help of experienced tax experts when applying for German VAT Registration, such as ourselves here at J&P, as the registration process is renowned for being scrupulous. Find more information in our how-to guide for registering for VAT in Germany.
Registering 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.
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.
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. All applications and correspondence must be conducted in French. These applications must be submitted to the Service des Impôts des Entreprises. To find out more, read our how-to guide for VAT registration in France.
VAT Registration In Spain
Like the previous two EU countries, you need to register for VAT in Spain if you make any taxable sales or supply any services in the country. However, what is unusual about Spain is that you cannot register for VAT voluntarily. You have to already have made taxable sales of goods or services and then retrospectively pay VAT on those sales.
You must also register for VAT if you hold any stock in Spain. It’s also very important to note that you will need to appoint a fiscal representative in Spain. Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients. If you use J&P to facilitate your Spanish VAT registration we can act as your fiscal representative. Find out more in our guide relating to how to register for VAT in Spain.
How To Register For VAT In Italy
Italy has always presented a strange proposition for ecommerce sellers. On the one hand, it is no secret that the country lags behind some of the bigger ecommerce markets in Europe such as the UK and France. However, it is one of the fastest growing ecommerce markets in the world, with an average growth of 10-20% year-on-year for the last 5 years. With ecommerce in Italy now comfortably worth more than €30 billion, it might be time for you to expand your business to the southern European country.
There is no Italian VAT registration threshold for non-resident traders. So If you wish to sell in Italy you will have to register for VAT. Just as with Spain, you will be required to have a fiscal representative in order to register for VAT in Italy if you are a resident of a non-EU state. This is recommended in Italy anyway, as returns can sometime be complicated if not submitted in Italy. If you require this service, please be aware that we at J&P can act as a fiscal representative in Italy and we are very experienced in dealing with the Italian tax authorities. For more information, check out our guide on registering for VAT in Italy.
The OSS & IOSS
From the 1st July 2021, rather than registering for VAT in every individual EU country in which you make sales, you will be able to register for the OSS which will allow you to submit a single VAT return quarterly, listing all pan-EU sales.
To use the OSS though you will need to be VAT registered in at least one EU state. You will also have to remain registered in every EU state in which you store goods. Thus, it makes sense for you to store goods in the same country in which you have registered for VAT. Of course, if you are an EU seller this will likely be your country of residence.
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 are both complication systems, so please read our guide on the OSS and IOSS.
Conclusion – We Are Experts In EU VAT Registration
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.
Ebay’s New Star Plan For Chinese Sellers
As those of you who are interested in ecommerce will know, the demand for overseas products has never been higher. In light of this, Ebay have launched a new sales model for Chinese sellers called the ‘Star Plan’. The hope is that this new function will make it easier to promote and sell products abroad. As China is one of the most competitive cross-border ecommerce markets in the world, those who incorporate the Star Plan could find that it’s the advantage they need to empower their global ambition. Here’s everything you need to know about Ebay’s new star plan for China-based sellers.
What Is Ebay’s New Star Plan Designed For?
As previously mentioned, the main aim of the Ebay’s new Star Plan is to increase cross-border sales for Chinese sellers. To do this, Ebay are hoping sellers will make the most of the plan’s pre-sale feature. This means that sellers can advertise their products up to 30 days before launching them.
Ebay will then expose buyers from across the world to these products, which will hopefully increase exposure, demand and brand awareness. In order to ensure that sellers achieve their desired outcome of more exposure and sales, Ebay are giving those who enrol in the Star Plan access to six main support features to help them grow their brand and customer base.
What Are The Features Of Ebay’s New Star Plan?
Six main support features make up the Star Plan. These include off-site promotion, support from the account management team, promoted listings advanced, branded product catalogue, accurate delivery of coupons and official store brand identity. Let’s take a closer look at each in turn.
Off-Site Promotion
The main aim of the program is to grant more exposure to the products of participating sellers. This is why Ebay are offering these sellers the opportunity to make the most of off-site data analysis and traffic monitoring tools. This data, couple with conversion data analysis, will give participating sellers the opportunity to rethink and plan their selling strategies.
Exclusive Account Manager Team Support
To many sellers, the data that will be available from the off-site promotion may seem daunting. That is why Ebay will also give participating sellers exclusive access to the account manager support team who will help them interpret the data, so sellers can then launch their new products more efficiently.
Brand Identity
Remember in the introduction we said that those who incorporate Ebay’s new Star Plan could gain an advantage on competitors? One of the main ways that the plan makes this possible is by giving participating sellers an official store brand identity. This means that these sellers will benefit from Ebay indicating that they are an ‘official flagship store’ or an ‘official authorized store’. This will increase the credibility of these sellers and their products.
Branded Product Catalogue
In addition to the brand identity, Ebay will also add the products of those brands into an exclusive catalogue, as well as the Ebay standard product library. Once again, this will increase the exposure and credibility of these items and sellers.
Access To Promoted Listings Advanced
We won’t go into too much detail here about promoting listings as we covered it in our article on the most recent Ebay Seller Update, but essentially the new advanced version of promoted listings means that you will be charged every time someone clicks on your ad, rather than when they buy a product. Whilst this may seem counter-intuitive, the function allows sellers to bid on keywords and thus be shown across the globe for specific keywords, meaning the possibility for increased exposure is huge.
Accurate Delivery Of Coupons
Once again, this feature is another way to access data provided by Ebay which will help sellers deliver their coupons at the most opportune moment. As with the other data, sellers enrolled on the Star Plan will be able to use the support of the account management team to formulate different strategies depending on the data.
We Have A Great Deal Of Experience When It Comes To Supporting Ebay Sellers…
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.
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!
Shopify Unveil ‘Shopify Markets’
Shopify is an ecommerce provider that has enjoyed a meteoric rise in popularity over the last few years. Whilst it still tails WordPress as the leading website designer (for website designs concerned with CMS, at least) Shopify is the fastest growing online store builder in the world, as well as being the most searched ecommerce solution available. This month, Shopify launched Shopify Markets, a new ecommerce tool that will enable sellers to manage their cross-border storefronts from a central hub. Here’s everything you need to know.
What Is Shopify Markets?
Essentially, the new ecommerce solution is designed to make it easier for sellers to sell cross-border. This is because Shopify Markets will automatically take care of obstacles such as language localization, currency conversion and will even allow merchants to manage their import and export taxes.
This tool, which also allows merchants to set up their own storefront, will mean that it is much easier for sellers to enter new markets. Shopify Markets will allow users to check product availability in individual locations, as well as other specific insights into each market. Just like with other Shopify products their will be different payment plans for users to choose between. Those using Advanced Shopify or Shopify Plus will get additional benefits such as managing fulfilment locations in different locations.
How Else Can You Benefit From Using Shopify Markets?
Another interesting thing merchants should be aware of is that Shopify has recently struck a deal with the marketing service Yotpo. Yotpo is a leading marketing provider who can handle direct-to-consumer marketing such as referrals, SMS and email for digital brands.
This should excite ecommerce sellers as marketing is one of the best ways to grow your brand, especially when entering new markets. Yotpo has said that their main aim is to accelerate product development and growth, will which work perfectly with Shopify Markets.
Are Shopify The Ecommerce Provider Of The Future?
It is definitely looking that way. There is the issue of the fact that the service is currently mainly only useful in USA and Europe, although it does have plans to expand into the Asian markets. This being said, they are still one of the biggest ecommerce providers in the world. Shopify has over 1 million active websites, and they are also responsible for almost 4% of the top 1 million websites in the world.
This is mainly due to their dominance of English speaking ecommerce websites. Shopify have over 800,000 websites in the US and almost 50,000 in the UK. It is thought they command a market share of 31% in the US when it comes to ecommerce websites. The launch of Shopify Markets, as well as the addition of new languages to their services, means that they are ready to continue this growth all over the world.
If You Are An Ecommerce Seller, We Can Help You
If you have any concerns about participating in cross-border ecommerce, we at J&P can help. We have the qualifications and knowledge to help you plan ahead, so please do not hesitate to get in touch should you have any further questions about selling on online, or if you need any help with adapting your business. We can get you VAT registered across the EU and can file your returns. Essentially, we sort out your tax so you can deal with selling your products. You can contact us at enquiries@jpaccountant.com, on our social media, or give us a call on 0161 637 1080.
Meet Our Local Team | Accounting & Bookkeeping
Today’s post is going to be a bit different. Rather than giving you advice on all things tax, ecommerce and logistics, today we want to introduce you to a couple of members of our local team. We recently spoke to Danny, a senior member of the local team who deals with VAT accounts and PAYE services, and Livia, another senior member of the local team who deals with the submission of tax returns and internal operations. These two employees have a vast array of skills and experience in the domain of accounting, and we thought you might enjoy meeting them and benefitting from their expert opinions.
So, Danny and Livia, could you please give us a general overview of the services that the local team offers?
Danny: Certainly. For the most part, we at J&P offer the general services of an accountancy firm. This includes bookkeeping and the submission of our client’s accounts to HMRC and Company House. Occasionally, we also provide business plan support for businesses and their management accounts.
Livia: We also deal with VAT compliance checks. Since the outbreak of the pandemic the government have borrowed heavily and are keen to recoup some of this money. We are definitely expecting to see more and more tax investigations over the coming months!
How does this work with clients, do you talk to them directly?
Danny: Yes, we believe that talking directly to our clients is the best way to get a clear picture of what the client wants and this means we can solve any of their issues quickly. We communicate with clients in a variety of different ways. Of course via phone call is the most direct, but we are also happy to communicate to clients via WeChat if this is their preferred method.
Livia: Also, clients also come to see us directly in the office. Even if it is an unplanned visit, we always ensure we make time for our visitors and we will never turn a client away.
So would you say you have a good relationship with our clients then?
Livia: Definitely. We understand that trust is one of the most important factors when it comes to building relationships with clients and so we always ensure we are communicative and transparent with. We are always happy to offer them our expert advice.
Danny: Yes, I would have to agree. A lot of our new clients come to us from referrals from previous or existing clients so we must be doing something right!
That’s great to hear. The past 18 months must have been difficult for our clients; could you please tell us a little bit about some of the difficulties they’ve faced and how we’ve helped them?
Danny: Well yes, the last 18 months have definitely been difficult for clients due to Brexit and the pandemic. It is hard to give a blanket answer to this question as we support a wide range of clients and so they’ve all struggled differently. For example, the ecommerce sellers and importers have struggled with Brexit due to the need to register for VAT in more EU countries and obtaining EORI numbers. On top of this a lot of them sell on Amazon and Ebay so they’ve had to deal with the new regulations regarding online marketplaces.
As for our clients in hospitality the new paper work originally caused delays in shipments. We have followed the Brexit situation closely for years, and thus we have been able to guide or clients through the situation really well and have helped them get to grips with the new paperwork.
Thanks Danny, what about the issues that have faced from the pandemic Livia?
Livia: Just as Danny said with Brexit, we have had to accommodate all of our clients in different ways. In some cases, our clients in hospitality actually didn’t fair too badly due to the increase in deliveries and people ordering takeaways. However, our clients who own businesses such as hairdressers and beauty salons have struggled more due to the fact that they had to close for months on end.
Whilst the government offered a lot of support to businesses, we’ve found in some cases that our clients have struggled to pay back these loans on time. In these cases we’ve had to help our clients find ways to pay these back on time without incurring interest and informed them of all their available options, such as instalment schemes. We’ve been in constant contact with HMRC to ensure that our clients are able to find a way to pay back what they’ve borrowed in a way that suits them.
Thank you both, it’s really interesting to hear about how those two major issues have affected our clients so differently. Are there any upcoming issues that you think business owners or prospective clients should be wary of?
Danny: I think the two main ones are the increase in HMRC tax investigations. It looks like the government are really going to ramp these up, so business owners should make sure all of their accounts are compliant and should get in contact with us if they receive notice from HMRC that they are going to be under investigation.
Also, business owners and sellers should be checking when their repayments are due for any of the government support that they’ve received over the last 18 months. Late payments could result in penalties so make sure to check all your repayment dates!
That’s really good advice. That all but concludes are interview, before I let you go I just wanted to ask what you both enjoy most about working at J&P?
Livia: I think it’s the opportunity I have had to develop myself. Due to the wide spectrum of clients we support we have to deal with a variety of different issues and so we have to be innovative in our techniques for supporting them.
Danny: For me, it’s the satisfaction I get from helping clients. I talk regularly with our clients and it feels great when we are able to solve their problems. Also, I really like the working environment we have here. We have a really strong team who works well together which means we can provide the best service possible.
That’s great to hear. Thank you both for speaking with us today!
Hopefully this interview has given you an insight into how we do things here at J&P and the advice that our experts gave has been of some value to you!
If you are a UK business, we would be more than happy to provide you with accounting and taxation services, such as Company House registration, confirmation statements, and statutory financial reports. 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 end of the Coronavirus crisis and Brexit, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
