Category: VAT

Amazon Pan-European FBA Programme

VAT
By Jeamy Navarro-Schrank
Date Updated:
Date Published:

FBA-Programme

Sell with Amazon
Pan-European FBA

Teaming up with Amazon’s Pan-European FBA programme through AVASK means you get the perks of selling across Europe with ease. We’re talking lower shipping costs, faster delivery to customers, and a boost in sales. Plus, we’ve been at it for 8 years, helping thousands of sellers just like you expand their reach.

Amazon Pan-European FBA

Expand your business to the EU with ease

What is the Pan-EU Programme?

Imagine having your products available to millions of customers across Europe with just a few clicks. That’s what Amazon’s Pan-EU Programme does. It’s an easy-to-use service that helps you sell your items in five key European countries, plus two more, without the hassle.

How does it work?

Stay on the right side of tax regulations with AVASK. You send your products to Amazon, and they take care of the rest. They’ll store your items in their warehouses and send them out to customers quickly and efficiently. This means your customers get their purchases faster, and you don’t have to worry about the details.

Why use Amazon Pan-EU?

Because it’s easy and convenient! Your products get Prime status, which customers love, and they appear in all of Amazon’s European stores. Plus, you only deal with local shipping fees, saving you money.

What is the Pan-EU Programme?

Imagine having your products available to millions of customers across Europe with just a few clicks. That’s what Amazon’s Pan-EU Programme does. It’s an easy-to-use service that helps you sell your items in five key European countries, plus two more, without the hassle.

How does it work?

Stay on the right side of tax regulations with AVASK. You send your products to Amazon, and they take care of the rest. They’ll store your items in their warehouses and send them out to customers quickly and efficiently. This means your customers get their purchases faster, and you don’t have to worry about the details.

Why use Amazon Pan-EU?

Because it’s easy and convenient! Your products get Prime status, which customers love, and they appear in all of Amazon’s European stores. Plus, you only deal with local shipping fees, saving you money.

Advantages of selling with Amazon Pan-European FBA

Access to all EU markets

Sellers can offer their products on all of Amazon’s European platforms and thus increase the visibility of their products.

Local shipping costs

Sellers pay FBA’s domestic shipping costs in the countries where they store, which can be more cost-effective than cross-border costs.

Fast and reliable shipping

Amazon’s fulfilment algorithms distribute stock throughout Europe, placing products closer to customers to speed up delivery times.

Prime eligibility

Products become eligible for Amazon Prime when you sell with pan-European FBA, increasing customer confidence and potential sales.

How to join Amazon’s Pan-European FBA Programme

To participate in the Pan-European Programme, sellers must:

  1. Register for VAT in each European country included in the programme to comply with tax obligations.
  2. Deliver goods to an Amazon distribution centre.
  3. Activate Pan-EU in their Amazon seller account, which will trigger Amazon’s distribution process.

Simplify Pan-EU FBA with AVASK

Think of AVASK as your neighbourhood guide to the world of VAT. They’re the experts who make sure you don’t get lost in Europe’s complicated tax maze.

Why AVASK?

Because taxes can be tough, and you have better things to do. AVASK frees you from the hassle of VAT so you can focus on growing your business with Amazon’s Pan-European Programme.

Joining the Pan-European Programme with the help of AVASK means you can say goodbye to the headaches of cross-border selling. Your products move more smoothly, your logistics are simplified and your sales? They are ready to fly!

Comparing different Amazon programmes

What is the difference between Amazon EFN, MCI and Pan-EU FBA?

Pan-European FBA

  • VAT Registration: Register in 6 countries. You need a minimum of 2 countries to activate the programme
  • Ship your products to one of Amazon’s fulfilment centres: Amazon will distribute your stock with no additional charges
  • Local fulfilment fees Pay local fulfilment fees in all marketplaces

European Fulfilment Network (EFN)

  • VAT registration: You only need to register in one country. The perfect solution for smaller sellers, or for those wanting to test their product
  • Ship your products to Amazon’s fulfilment centre, simplifying your inventory management
  • Local fulfilment fees: Pay local fulfilment fees on domestic orders

Multi-Country Inventory (MCI)

  • VAT registration: Register in 2-5 countries
  • Choose where you ship stock: Choose which countries you want to ship to and store your stock in
  • Local fulfilment fees: Pay local fulfilment fees for sales in the marketplaces where you store your stock (minimising cross-border fees)

Ready to expand your business with ease?

The Amazon Pan-EU Programme is your ticket to a stress-free selling experience across Europe. Fill in the form below to get started.

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VAT and Trade in Northern Ireland: Understanding the Windsor Framework

VAT
By AVASK
Date Updated:
Date Published:

If you’re an e-commerce seller, the world of VAT and trade regulations can sometimes feel like a maze, especially when it comes to complex situations like Northern Ireland’s relationship with the EU.

To help you make sense of it all, let’s delve into the background of the Windsor Framework, its significance, and how it impacts your e-commerce business.

The Good Friday Agreement

The Northern Ireland Protocol, implemented as part of the UK government’s command paper, serves as a crucial pillar in maintaining the integrity of the Good Friday Agreement (GFA) of 1998.

The agreement, signed by the UK and Irish Prime Ministers, marked a turning point in the history of Northern Ireland and the Republic of Ireland. It established a new government structure for Ireland, with a devolved Northern Ireland Assembly gaining power over key areas like healthcare and education.

This historic agreement also granted citizens the choice of UK or Irish nationality or both, while facilitating the reduction of violence and British military presence in the region.

The Good Friday Agreement was designed to remain in place until a population-based referendum decided otherwise. Brexit, however, introduced a unique challenge to Northern Ireland. As the only part of the UK sharing a border with the EU, it faced trade complications not encountered in England, Wales, or Scotland.

Post-Brexit “Hard Border” Concerns

Brexit brought trade implications that necessitated checks on all goods moving between the EU and the UK.

While the Good Friday Agreement did not explicitly address the concept of a “hard border”, it emphasised scaling back surveillance between areas, which was seen as a precursor to border surveillance. Reintroducing a “hard border” could potentially breach the agreement.

The Northern Ireland Protocol Solution

In response to these concerns, the Northern Ireland Protocol was proposed and approved by both the UK and the EU.

This protocol shifted the concept of a “hard border” from the border between Northern Ireland and the Republic of Ireland to the border between Northern Ireland and the rest of the UK.

Under this arrangement, goods arriving in Northern Ireland ports from the UK are checked to ensure compliance with EU rules.

Subsequently, goods can flow freely between Northern Ireland and the Republic of Ireland.

While some parties in Northern Ireland supported this solution to uphold the integrity of the Good Friday Agreement, others argued that it created a separation between Northern Ireland and the rest of the UK, leading to the Stormont stalemate.

The Windsor Framework: Simplifying Trade

To address these concerns, the UK proposed a new approach to trade procedures:

Politically, this framework restores power to the Northern Ireland government, enabling them to oppose EU goods rules through established procedures.

This new framework also brings VAT benefits. Changes to the legal text of the treaty allow emergency VAT and excise duty changes and reliefs to apply across the UK, including Northern Ireland. This includes measures like zero rating energy-saving materials and alcohol duty reforms.

Navigating the Windsor Framework as an E-commerce Seller

As an e-commerce seller, understanding the nuances of VAT, the Windsor Framework, and the evolving trade landscape is paramount.

Watch the ‘Changes in Northern Ireland’ session of our recent live broadcast, and learn more about how these changes will affect you as a seller.

AVASK have a dedicated team of experts ready to help you navigate the complexities of international VAT. Get in touch to stay compliant wherever you are selling today.

Navigating VAT in the Digital Age (ViDA) for E-commerce Sellers

VAT
By AVASK
Date Updated:
Date Published:

Recently, the European Commission unveiled the VAT in the Digital Age (ViDA) initiative. Aimed at amending the European Union (EU) Value Added Tax (VAT) system, the proposal addresses the challenges posed by digitalisation.

If you’re an e-commerce seller, this initiative will undoubtedly impact your business operations. In this blog we’ll explore the key aspects of ViDA and understand how it might impact your e-commerce business.

Understanding ViDA

The ViDA proposal is a response to the growing digital economy’s complexities.

As online transactions have surged, traditional VAT systems struggled to keep up, leading to regulatory inconsistencies.

To address these challenges, the European Commission proposed the VAT in the Digital Age initiative, aiming to modernise VAT regulations and ensure a level playing field for all businesses operating within the EU.

Key Highlights for E-commerce Sellers

Single VAT Registration

The European Commission aims to further minimise the obligation to register for VAT in multiple EU Member States by allowing businesses to manage their EU VAT affairs under a single VAT registration.

Graphic showing how the European Commission aims allow businesses to manage their EU VAT affairs under a single VAT registration

Deemed Seller Updates

E-commerce platforms will play a more substantial role in VAT compliance under the ViDA reforms.

From January 1, 2025, online marketplaces collection responsibility will be extended, requiring them to remit VAT for B2C sales made by both non-EU and EU sellers. This simplifies VAT obligations for sellers while increasing reporting requirements for online platforms.

Also, short-term accommodation suppliers (rentals of less than 45 days) and passenger transport service companies will be subject to the deemed supplier rule. This aims to create a level playing field for VAT between traditional providers and those offering services through electronic interfaces, like Airbnb and Uber.

Digital Reporting Requirements (DRR)

New standardised Digital Reporting requirements (DRR) and e-invoicing are to be introduced gradually on intra-community transactions.

Graphic sowing the ViDA timelines

Implications of ViDA for E-commerce Sellers

As an e-commerce seller, the ViDA initiative is likely to impact your business operations in several ways:

Simplified Cross-border Transactions

The expansion of the OSS scheme means you can manage VAT obligations for multiple EU countries from a single point. This simplifies the compliance process and reduces administrative burdens.

Increased Accountability

E-commerce platforms will assume a more active role in VAT compliance. This may affect your business relationship with the platforms, as they will now be responsible for collecting and remitting VAT on your sales.

It’s crucial to understand the legal and financial implications of this proposal for your specific business model.

Seeking professional advice to ensure compliance is highly recommended.

AVASK have a team of experts that are ready to help you navigate international VAT. If you’re unsure of your international VAT obligations, or would like to get VAT registered, get in touch with our team today.

HMRC’s additional Amazon VAT registration requests and how to navigate them

VAT
By AVASK
Date Updated:
Date Published:

The COVID-19 pandemic reshaped e-commerce landscapes in dramatic but often positive ways. In the UK, retail e-commerce saw a massive boost, particularly in categories like food and household goods. In 2020 alone, the market saw 46.5% year-over-year growth, and that trend has only continued. By 2025, experts expect e-commerce to account for at least half of all textile and clothing sales in the UK.

With figures like these, it is clear that despite the complications of Brexit the UK is still a thriving market that e-commerce sellers can hardly ignore. But there are special considerations in completing the VAT registration process for the UK. HMRC will likely request additional information during registration, so make sure you are ready.

HMRC additional requests

The UK tax authority HMRC has a vested interest in making sure that anyone who registers for VAT in the UK intends to trade or is currently trading within the country. To help ascertain this, they require completion of a specific questionnaire and submission of comprehensive documentary evidence to support your application. They may refuse your UK VAT number application if these criteria are not met.

Some examples of the evidence required include:

  • HMRC’s special questionnaire
  • Welcome email from Fulfillment by Amazon (FBA) in the UK
  • Screenshots from your Seller Central of things like your FBA shipment page
  • A Goods Purchase invoice
  • Logistics contract
  • Amazon sales data report

Please note that this list is not exhaustive.

When you first bring goods into the UK, a 90-day period begins within which you must register for VAT in the UK. You must also provide Amazon with your valid UK VAT number within this time frame. If you do not complete these critical steps, your account may be blocked and need to be reinstated.

How can AVASK help?

While these requirements and penalties for noncompliance may seem daunting, AVASK can help make the process easy and seamless. We are able to handle VAT registration on your behalf and specialise in setting up Amazon sellers for success regardless of the countries they sell from or into.

We represent over 8,000 e-commerce clients in 50 countries and our team of experts speak over 20 languages. Additionally, AVASK offers every client a dedicated point of contact throughout the registration process, so you always know where things stand and have someone you can speak to who understands your situation. We believe every business requires a bespoke, hands-on solution and are proud to be able to deliver this.

If you have any questions about the UK VAT registration process, or you are ready to proceed, simply contact us and we can get started today. You can also read more about HMRC additional requests on Amazon’s website.

IOSS and OSS filing deadlines are fast approaching

VAT
By AVASK
Date Updated:
Date Published:

It may seem like only yesterday that the new One-Stop Shop system came into effect for European VAT payments, but the first set of OSS filing deadlines is already upon us. Read on to find out more about the upcoming deadlines for OSS and IOSS and how you can make sure you are ready in time.

Registration deadlines

You must register by the 10th day of the month after your first eligible supply to be able to use OSS for that supply. If you apply after the 10th of the month following your first eligible supply, your registration will take effect from the first day of the calendar quarter after you applied to register.

This is because OSS registrations take effect starting with the next full quarter after your application. If you registered after 1 July, your application comes into effect at the start of the next quarter in October. Any supplies made after registration can be disclosed to the relevant tax authorities by the tenth day of the month following your first supply, thus ensuring that all your supplies are included under the scheme.

IOSS and OSS filing deadlines

In most cases, OSS returns are submitted according to calendar quarters. These quarters are January to March, April to June, July to September, and October to December. Your OSS returns are typically due by the last day of the month following the reporting period.

For example, your Q1 OSS return is due on 30 April, and the Q3 OSS return is due on 31 October. Additionally, monthly IOSS returns are due by the last day of the month following the reporting period.

The following table lays out the dates for OSS filing deadlines:

Tax periodDate you can submit fromDate you must submit by
Quarter 1: 1 January to 31 March1 April30 April
Quarter 2: 1 April to 30 June1 July31 July
Quarter 3: 1 July to 30 September1 October31 October
Quarter 4: 1 October to 31 December1 January (of the following year)31 January (of the following year)

OSS filing deadlines.

Please bear in mind that bank holidays and weekends do not affect this deadline.

Payment deadlines

Most frequently, payment is made for the VAT return when it is submitted, along with the unique reference number for that return. However, if you choose to make your payment separately, that payment is due by no later than the end of the month following the end of the tax period which your return covers.

Special considerations

It is important to keep in mind that OSS and IOSS sit outside your ordinary VAT accounting in your own country, so you may still need to complete a VAT return in your own country. The filing deadlines for these may not necessarily line up with your OSS filing deadlines.

Additionally, you may need to make changes to your e-commerce or accounting software to take variable VAT rates into consideration.

Registering for OSS/IOSS

While there are alternative methods for handling e-commerce sales in the EU, generally the most efficient way to deal with VAT compliance is to register for the OSS/IOSS schemes. There are a few options to register for, including OSS, non-Union OSS, and IOSS, so you will need to research which best suits your business needs.

And if you are not established in the EU then IOSS registration may involve finding an intermediary to act on your behalf.

How can AVASK help?

AVASK can offer direct and indirect representation to cover the IOSS requirement for companies which are not established in the EU, in addition to handling your VAT return filings. We can make sure that you don’t have to worry about upcoming OSS filing deadlines when you sign up for our services.

We also can get you up to speed on these changes to VAT filings with our multilingual webinar series. You can watch these informative session recordings on our YouTube channel.

Once you have done your research, you can start the registration process with AVASK on our website using this form.

Changes to import VAT in France – effective 1st January 2022

VAT
By AVASK
Date Updated:
Date Published:

The French Tax Administration has announced that effective 1st January 2022, all import VAT will be mandatorily deferred to the French VAT return via the declaration of an import VAT reverse charge.

So, what is import VAT reverse charge?

The import VAT reverse charge is an existing mechanism in France, but previous eligibility requirements have made it very difficult to utilise. From 1st January 2022, all previous eligibility requirements will be waived. The shipper will simply need to hold a valid intra-EU VAT number in France and this will be noted on the customs declaration. Therefore, the shipper must communicate their French intra-EU VAT number to their freight agent so that the declaration can correctly be made. 

This is fantastic news to shippers that utilise France for importations – a huge cash-flow benefit will be seen by removing the requirement to outlay cash on import VAT at the border. As well as this, we should see a reduction in the number of sellers that have a credit with the French Tax Administration.

Import VAT reverse charge – practical use

Any shipments that clear French customs from 1st January 2022, will be subject to the import VAT reverse charge. The import VAT amounts will be lodged against the shipper’s French intra-EU VAT number.

When it comes to filing the French VAT return, the import VAT amounts declarable for the reporting period will be pre-filled on the seller’s VAT return already. These values will appear on the seller’s VAT return by the 14th of the month. Although the import VAT amount is pre-filled on behalf of the taxpayer, it is still the responsibility of the taxpayer to ensure this amount is correct. The French customs authorities have announced that they are opening a service whereby the taxpayer can check the total value of import VAT deferred for the period. 

Additionally, the deadline for submitting VAT returns in France for importers has been extended to the 24th of the month following the reporting period. This is due to the fact, that the pre-filled values may not show on the seller’s VAT return until the 14th, so an extension of the existing deadline is necessary. Please be clear that this deadline extension is for importers only. 

How AVASK can help?

AVASK is a firm of accountants and indirect tax experts, with a well-reputed specialism in global e-commerce expansion, international taxation, accountancy, business advisory, and consultancy services.

If you have any questions about how we can help you expand your business, get in contact with us. Our team of experts can assist with VAT registrations, VAT filing and compliance as well as Customs and Trade.