VAT Compliance for Online Sellers

This page shall try and remove the last doubts and show which way of fulfilment is the best for your online business, taking into account the current size and the turnover. All 3 FBA types will be explained and compared. With each of these services, different rights and duties come along. Using the option that best fits your business in its current state can boost sales tremendously.

FBA sellers must focus on their sales when it comes to the decision which service to select. amavat^® suggest the following: EFN - if the monthly turnover is less than 500 units, CE when your turnover is between 500 and 1,500 units per month and PAN-EU if your sales are higher than 1500 units.

Conversely, it can also be a potential expansion strategy to choose PAN-EU right from the start - but only if it pays off in the end. This is the level that all online sellers should aim for. amavat^® are here to help and assist you with the increased bureaucracy burdens and the administrative duties, which could slow down your expansion process or simply overwhelm you.

If you are looking for VAT compliance experts with local knowledge and expertise who can handle your VAT registrations, filing and reports.

We offer ‘VAT Registrations’ as a one-off cost and are charged at €420.00 per country.

We can also offer you a ‘Translation Package’ when registering for your tax identification number at €170.00 per country.

Assisting you monitor your sales with regards to thresholds in each EU country, after separate order: for deliveries to the EU countries that are not covered by an existing amavat^® mandate agreement, we can set this up at €15.00 per month.

Please familiarise yourself with our offers. If you have any questions or queries, please do not hesitate to contact us.

How do I start selling online in the EU? Once you have decided to create your own eCommerce business, the next step involves identifying the right solution.

At amavat^® we can offer a wide range of services and solutions for your EU based online business.

Many businesses often fall into the trap of rushing into projects without doing sufficient homework on the business requirements, the technology solutions that are available and the potential suppliers in the marketplace. We pride ourselves in having the right people to look after you. It could be from our dedicated and expert tax advisors in each EU country to look after you at a local level with the tax authorities, or how we can take care of your VAT registration in each EU country, or how we can monitor your thresholds to keep you fully VAT compliant, or even our knowledge of options for Amazon sellers.

We really have a truly unmatchable service.

Are you selling online to European customers from outside the EU? For companies based outside the EU, there are a number of import taxes, such as VAT and duty to contemplate - how much is owed is calculated on the value of the goods. But, the central issue is ‘who is the Importer of Record’ and consequently accountable for the payment of all import taxes - you, the supplier, or your customer?

amavat^® can help and assist you with VAT registration so that you become the ‘Importer of Record’ and thus registering for VAT can help create a competitive advantage by decreasing import taxes and more significantly, providing a better customer buying experience. We can also help with your Economic Operators’ Registration and Identification number (‘EORI’). We are confident the benefits normally outweigh the costs.

• You advertise online that your product/s will be delivered without further charges being applied - the price paid online includes the VAT owed and is the TOTAL PRICE.
• The number of items returned will reduce.
• The import charges are based on lower production and transport costs.
• You can claim the import VAT you pay back on your VAT return.

Our services and solutions for your non-EU based online business can help enormously.

With regards to selling on Amazon and not based in the EU. Online sellers based outside of the EU who are using Fulfilment by Amazon (‘FBA’) face conflicting obligations to those resident within one of the EU Member States. The good news is that you can still sell to consumers without creating a company in the EU, but you will need to register for VAT in the countries where you are selling.

But product/s which are held at the non-EU seller’s location, then the product/s will have to first clear through EU customs. The seller can do this when the product/s reach the EU country for the first time. They can pay the import VAT and customs duty to bring the product/s into the EU for onward delivery to their customer. If the seller wants to retrieve the import VAT, then they need to VAT register in the country where the product/s are being cleared. If not, the seller must absorb the import VAT as a cost, along with the import duty.

Otherwise, the non-EU seller can force their customer to resolve the import VAT and customs duty. Normally the delivery agent will charge the customer this amount before they hand over the product/s. Whilst this can be simple, this does often discourage customers from repeat business with sellers.

Having our expert local knowledge and advice in every EU country can only be beneficial to you.