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Chaindesk

Frequently Asked Questions about VAT Services on Amazon is Ending - with AVASK

Updated: November 19, 2024

AVASK

Summary

The video provides a comprehensive overview of VAT obligations for sellers on Amazon's platform, particularly in the context of shifting responsibilities and compliance measures. It clarifies the nuances of VAT collection and reporting processes, emphasizing the importance of accurate reporting for various jurisdictions. The discussion covers strategies to optimize VAT payments, navigate import processes in different countries, and leverage services like AAS for expert guidance. Importantly, it underscores the significance of fiscal representation in certain countries for US businesses and offers practical insights on simplifying VAT compliance through tailored solutions and direct communication with VAT experts.

Introduction and Webinar Recap

Mike from AAS thanks participants for attending the webinar on the end of the VAT services on Amazon program. Due to time constraints during the webinar, a subsequent follow-up webinar is announced to address unanswered questions.

Responsibility for VAT Collection by Amazon

Explains the VAT collection responsibility of Amazon as the deemed supplier on B2C supplies and how it shifts to the seller in certain cases. Clarifies the VAT liability on transactions and VAT returns.

Need for Filing VAT Returns

Discusses the requirement for sellers to file VAT returns even if Amazon collects VAT on their behalf. Emphasizes the importance of reporting sales where Amazon collects VAT to ensure compliance with jurisdictional regulations.

Reporting Cost of Goods for PAN-EU System

Explains why sellers using the PAN-EU system need to provide their cost of goods for VAT reporting purposes. Details the process of reporting intra-community movements and the significance of cost reference.

Importing Goods into Europe

Provides insights on importing goods into countries like the UK, France, and the Netherlands, highlighting schemes to avoid direct import VAT payments. Contrasts the refund processes in countries like Germany, Italy, and Spain.

Import VAT Return for Italy

Addresses the process of obtaining an import VAT return for Italy and advises reaching out to AAS for assistance. Explains the documents required to reclaim import VAT, including the customs declaration service.

Paying Less Import VAT

Explores methods to reduce import VAT payments, such as deferring payment until VAT return submission in countries like the UK and France. Encourages consultation with tax consultants for further guidance.

Currency Payment for Import VAT

Suggests using online currency accounts for international VAT payments to optimize exchange rates and lower transfer fees. Mentions working with partners like WorldFirst for currency transactions.

VAT Liability in Poland and Czech Republic

Explains VAT liabilities in Poland and Czech Republic within the Amazon PAN-EU system, emphasizing the strategic positioning of fulfillment centers. Discusses the impact of storing goods on VAT obligations.

Consultation on VAT Filings

Introduces the premium service model for direct communication with VAT experts at AAS. Provides information on scheduling consultations and addressing VAT filing queries.

Fiscal Representation for US Businesses in Europe

Clarifies the need for fiscal representation in countries like France, Italy, and Spain for US businesses incorporated in the United States. Details the inclusion of fiscal representation in AAS services.

Submission of Purchase Invoices

Explains the process of uploading purchase invoices directly on the AAS portal in a simplified Excel format. Highlights the ease of completing and uploading invoices through the self-service model.

VAT Declaration for Sales through Channels Other than Amazon

Details the process of declaring VAT for sales through platforms like Shopify or eBay using simplified Excel templates on the AAS portal. Emphasizes the streamlined system for off-Amazon sales.

FAQ

Q: What is the VAT collection responsibility of Amazon as the deemed supplier on B2C supplies?

A: Amazon is responsible for collecting VAT as the deemed supplier on Business-to-Consumer (B2C) supplies, ensuring compliance with taxation regulations.

Q: Why do sellers still need to file VAT returns if Amazon collects VAT on their behalf?

A: Sellers are required to file VAT returns even when Amazon collects VAT, as it is crucial for reporting sales and ensuring overall compliance with jurisdictional tax laws.

Q: What is the significance of reporting sales where Amazon collects VAT?

A: Reporting sales where Amazon collects VAT is essential to comply with jurisdictional regulations and maintain transparency in tax processes.

Q: Why do sellers using the PAN-EU system need to provide their cost of goods for VAT reporting purposes?

A: Sellers in the PAN-EU system must provide their cost of goods for VAT reporting to accurately calculate VAT liabilities and ensure compliance with tax laws.

Q: What are some schemes highlighted to avoid direct import VAT payments when importing goods into countries like the UK, France, and the Netherlands?

A: Schemes such as deferring VAT payment until submission of VAT returns are mentioned to avoid direct import VAT payments when importing goods into countries like the UK, France, and the Netherlands.

Q: Why is fiscal representation needed for US businesses incorporated in the United States in countries like France, Italy, and Spain?

A: Fiscal representation is required for US businesses incorporated in the United States in countries like France, Italy, and Spain to comply with local tax regulations and facilitate VAT processes efficiently.

Q: How can sellers optimize exchange rates and lower transfer fees for international VAT payments?

A: Sellers can optimize exchange rates and reduce transfer fees for international VAT payments by using online currency accounts and working with partners like WorldFirst for currency transactions.

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