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Business Rates To Be Hot Topic In The Autumn Budget
Rishi Sunak is currently in the process of preparing for his Autumn Budget announcement. With the country in more debt than it has been for the last 50 years and businesses still reeling from the impact of the coronavirus, all eyes will be on him when he addresses the nation in a weeks’ time. One of the issues that will undoubtedly be raised will be business rates. Business rates have been a contentious topic for some time, so it is unlikely that Sunak will be able to get away with not addressing the issue in his upcoming announcement. We’re going to take a look at the discussion surrounding business rates, and speculate what Sunak may say on the topic at his announcement on October 27th.
What Is The Controversy Over Business Rates?
‘Business rates’ is the tax placed on businesses who maintain a brick-and-mortar place of operations. The rate is calculated against the value of the building. For some time now, business rates have been considered outdated due to the amount of business that is now conducted online and the advantage this gives to online businesses. There have been calls to lower the rate, or abolish it altogether. This viewpoint has only gathered momentum since the surge in ecommerce due to the pandemic.
As we have covered the positive effect the pandemic has had on ecommerce extensively, we won’t dwell on it again here. However, the fact remains that businesses who conduct most of their business online have fared far better since the pandemic than those who conduct the majority of their business on a physical premises. With reports claiming that over 330,000 UK businesses are at risk of closing over the next six months, many observers and, notably, the Labour party have called for immediate action to be taken regarding business rates.
So Why Don’t The Conservatives Just Cut Business Rates?
The UK government, and Rishi Sunak in particular, are in quite a difficult situation. As much as they need to continue to support businesses through the coronavirus, they also need to recoup some of the money that they’ve spent on the previous support. Of course, cutting business rates would not help them in this sense.
Some members of the Conservative party have suggested that business rates should be cut, but VAT should be increased to 20% in order to fund this. Whilst in theory this would be effective in recouping some of the money they’ve borrowed, it would put more strain on certain aspects of the economy and could deter people from spending. It would also go against their 2019 manifesto, in which they pledged to refrain from raising VAT. The Conservatives have already gone against their manifesto by raising the National Insurance tax, so they will be very reluctant to do so again.
If This Is The Case, Are We Likely To See Any Changes In The Upcoming Budget?
Whilst wholesale changes such as abolishing the tax altogether are unlikely, the issue will almost certainly be addressed. As it stands, the government have pledged to completely revise the tax in 5 years, this deadline will likely be bought forward. Another thing that will likely be addressed is the way in which the tax currently discourages businesses from making green improvements to their buildings.
Since the tax is based off the value of the building, if businesses choose to install features such as solar panels, this increases the value of the building and thus increases the amount of business rates those companies need to pay. Another change that Labour are pushing for is an increase to small business rates relief, which would certainly help SMEs. This seems unlikely, but possible.
Conclusion – We Will Keep You Up To Date On Any Changes
We know that many of you operate on brick-and-mortar premises and are concerned about business rates. We will ensure that you stay up to date on any changes to the rates. We will also be covering the Autumn Budget in more detail next week, so make sure you don’t miss our upcoming article on the Budget. Should you require any help when it comes to business rates, we can help. We help 100s of local businesses to ensure they remain tax compliant and we can do the same for you. Please feel free to contact us on enquiries@jpaccountant.com or give us a call on 0161 637 1080 to have a quick chat to find out how we can be of service to your business.
Amazon FBA Changes To Consider Before Black Friday
As if you weren’t already aware, Black Friday is just around the corner (November 26th). Black Friday is traditionally the beginning of the holiday shopping season for consumers, and harvest time for ecommerce sellers. Whilst we’ve discussed at length about the fact that the holiday shopping season has started earlier than ever before this year, Black Friday remains one of the most important dates in the ecommerce calendar. If you’re an ecommerce seller, you’ve probably already started preparing your business for Black Friday, but there are a few changes to Amazon FBA that you should be aware of that come into effect from the 1st of November.
Label Service Changes For Small & Light
The main change that ecommerce sellers can expect to see when it comes to small and light packages is in the label service fees. To give you some background, since the beginning of June Amazon have made it a requirement for each unit of a small and light delivery to have a barcode label. Originally, Amazon stated that if you could not do it yourself, Amazon would do it for you for free.
However, from the 1st of November this service will no longer be free. For UK sellers, the Small and Light FBA Label service will cost £0.08 per unit. This will bring it in line with other European countries, where the service typically costs €0.09 per unit.
Amazon sellers should thus consider getting their stock to Amazon before the beginning of November. Sellers should also be aware that Amazon now offer pan-European FBA for small and light packages.
New Requirements For Carrier & Tracking Information For Shipping To Amazon FBA
The next requirement that Amazon have added is an increase of information required when shipping to Amazon FBA warehouses. Amazon will require their sellers to enter the carrier name and tracking numbers. Just like with the changes to the label service charges, this comes in from the 1st November.
This new requirement will not affect all Amazon sellers, however. If you use an Amazon partnered carrier system, such as the Amazon partnered carrier programme or Amazon global logistics, since with these programmes Amazon generate the carrier and tracking information.
If you do not use these programmes, you can find how to enter them via the track shipment section of your summary page, or the Amazon marketplace web services.
Make Sure You Meet These Amazon Requirements Before Black Friday
As you can see, it will be vital that you adjust your procedures before Black Friday. We will be doing other articles to help you prepare for the big weekend in the coming weeks, and if you want more advice on Amazon changes you can find our article on Amazon’s new approach to returns and inventories by following the link.
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 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.
Why You Should Register For VAT In France
Following on from our article on why you register for VAT in Germany, this article takes a look at why you register for VAT in France. France is known to be one of the biggest ecommerce markets in Europe, a fact that has been underpinned by recent reports which have shown that French ecommerce generated over €112 billion in 2020 alone. France represents a fantastic opportunity for cross border ecommerce sellers, so let’s take a look at their ecommerce market in more detail and how you can begin trading there through VAT registration in France.
Massive Growth Due To Covid
The ecommerce market in France grew by over 8% in 2020. This, as with many other European countries, was due to lockdowns forcing the closure of traditional brick-and-mortar stores. This forced consumers online. Online sales of products and commodities increased by 32%, with internet sales overall increasing by 8.5%. The only sector of ecommerce that did not grow was the sale of services, which dropped by 10%. This can be explained by the drop in availability of travel and tourism during lockdowns.
Retail sales made up a lot of the growth, making up 13% of all online sales. This is further evidence that adopting an omnichannel business model will really add resilience to your business. We have definitely seen a strong correlation between online sales and business resilience. As we keep saying, it is not to late to move more of your business online, as the surge in ecommerce will almost certainly continue for the foreseeable future.
The Specifics Of French Ecommerce
On average, online transactions were worth about €60. This is an increase on previous years and is promising for ecommerce sellers. When you consider that there is over 41 million French people that buy online, this represents a massive market for sellers who are looking to expand their business to France.
One thing that sellers should consider though is the preferences of French consumers. Firstly, French consumers like to make purchases on mobile, with 41.4% of French buyers preferring to make transactions from their mobile phone. On top of this, instalment payments are extremely popular in France compared to other European countries. 30% of French consumers apparently prefer to use instalment payment options. PayPal is also a popular payment option in France, with 56% of shoppers using this as their preferred payment method.
VAT Registration In France
France is very similar to many other European countries when it comes to requiring you to register for VAT. If you are a UK seller, or based anywhere outside of the EU, you will have to register for VAT if you hold stock in the country. This is also the case if you 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.
When it comes to VAT registration in France, you will be required to provide the typical information for registering for VAT in any country. This includes 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.
Please be aware that all applications and correspondence must be conducted in French. This is why we would definitely advise you employ the services of an accountancy firm such as ourselves to assist you with the registration process. The whole process usually takes about 2 months. If you are based in the UK you will not need to appoint a tax representative. For more information, check out our guide on how to register for VAT in France.
We Can Help You Expand Your Business To France
VAT registration is an unavoidable step when it comes to expanding your business. Whilst it can be a daunting prospect, 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 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.
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.
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!
