What We Do
VAT Registration /
VAT
De-Registration
VAT Filing
&
Compliance
Intrastat Filing
&
Compliance
Threshold
Monitoring
Full Range VAT /
Tax
Advisory
IT Support
&
Services
Fulfillment by Amazon - VAT Registrations & VAT Returns
Online retailing is increasing rapidly right around the world. Companies of all sizes are taking advantage of the potential of the internet to reach into new markets, and extend their sales territories beyond the country in which they are established.
This is great news for businesses; but, it’s extremely important to make sure that VAT obligations are fulfilled as part of the process of making sales.
Getting VAT right is essential for international trade when using fulfillment by Amazon (FBA) an obligation to register for VAT locally can be created – We are able to guide you through this process.
Help grow your business with Fulfillment by Amazon
Let Amazon pick, pack, and ship your orders
You sell it, Amazon will ship it. Amazon has created one of the most advanced fulfillment networks in the world, and your business can benefit from their expertise. With Fulfillment by Amazon (FBA), you store your products in Amazon's fulfillment centers, and Amazon will pick, pack, ship, and provide customer service for these products. Best of all, FBA can help you scale your business and reach more customers. Read more information regarding amazon fulfillment here.
Let amavat® keep care about your VAT obligations
Amazon (Fulfillment By Amazon) does not take responsibility for trader’s tax issues. VAT, customs and income tax on profits are the sole responsibility of the e-tailer or seller. Traders on FBA therefore need to understand how VAT on cross-border transactions works.
The place of supply of goods (the VATability) in a cross-border B2C supply situation, is in the country where the journey in the goods begins. FBA dispatches customer orders from its local warehouse in the country of the customer or end-user. E.g. dispatches to German customers will take place from FBA’s warehouse in Germany, rather than say from the UK warehouse where the trader may be holding most of his stock. This will require the trader to have a VAT registration in Germany as this is a ‘domestic’ sale rather than a ‘distance’ sale.
There are also VAT issues regarding the transfer of the stock from one EU country to another, in this case bulk stock is transported from the trader’s warehouse in the UK to FBA’s warehouse in Germany. The VAT treatment will depend upon whether this is a transfer of ‘consignment’ stock or ‘call-off’ stock. In certain situations the dispatch will give rise to a ‘sale’ and in others it’s not a sale but just a ‘transfer’.
The situation may be further complicated if the UK-based trader is an ‘agent’ acting on behalf of say a non-EU principal e.g. an American or a Chinese vendor. There are special VAT rules in an agency-principal situation.
Furthermore, the UK is a ‘common law’ country similar to USA but most of the other EU member states are ‘civil law’ countries. The concept of ‘commissionaire agent’ may be different there than in the UK leading to contractual complications with tax implications.
Due to the complexity and interaction of tax and other legal considerations traders should take advice and plan well ahead. Our Services will guarantee that you as an Online Seller joining the FBA Program are compliant with all VAT obligations in Europe and that you can concentrate on what you like to do… Selling!
