Take action now: Prepare your Amazon business for Brexit

#1

The UK is due to formally leave the EU’s Single Market and Customs Union from January 1, 2021. While UK-EU negotiations are ongoing (including determining what tariffs, if any, will apply), from January 1, 2021 there will be a customs border between the UK and EU which will have an impact on businesses working across this border.

From Monday, December 21, 2020, Cross-Border fulfilment via EFN and Pan-European FBA will start winding down, stopping in full on Monday, December 28, 2020. To maintain your European sales, you will need to send products to fulfillment centers in the UK and the EU. Refer to the preparing for Brexit section for details.

Seller-fulfilled orders (where the seller is using a 3rd party carrier) can continue to be fulfilled across the UK-EU border. It will be the seller’s responsibility to ensure all duties and tariffs are paid prior to delivery to the customer.

To help you stay informed of changes that may affect your business on Amazon, we have consolidated important updates and frequently asked questions related to Brexit on Prepare for Brexit Help page

#2

Super helpful…

Take action now for something that has zero information given on what is required. (and we have 48 hours to figure it out!). Is this some sort of guessing game we are playing?

#3

This looks a bit dated to as it mentions tariffs
A deal has been struck and there is a free trade deal so there are no tariffs.
That being said I am not sure what information is now required for movement of goods as a lot of the information you have to input is based on tariffs so if there are no tariffs do you still need to give this information?
If you are shipping across Europe apart from the UK then there is no change, however I believe you still need to declare what is going abroad as just because it is tariff free they need to know what goods are where and how they are being supplied so you will need customs declarations.

I think you still need an EORI number based Europe to deal in Europe but any destination in Europe will do wherever you are already registered but it has to be outside the UK your UK EORI is not valid.
If you want to trade in the UK the VAT number for UK is still valid but the EORI number is now irrelevant if it has been provided from the UK.
I am not a tax expert so I am just going off what little information I have mustered from my accountants and some steps I have already taken whilst this was all going through.
Anything already in fulfillment centres remain unaffected
If you are just doing normal direct sales in Europe in or out of Europe it simply means you don’t have to factor in import and export duties.
Not sure about how the VAT status is going to change so I need to look more into this so if anyone else can shed any light it would be useful.

#4

Since we are responsible to ensure all VAT is paid prior to delivery, other than methods available through couriers such as DHL and UPS anyone know how you do this when posting via Royal Mail?

#5

Unfortunately that is incorrect. Tariffs will still apply to all products not manufactured in the UK. Tariffs on my main area of toys will be 4.7%.

#6

If you’re a parent, you’re playing two guessing games…

#7

It will be the seller’s responsibility to ensure all duties and tariffs are paid prior to delivery to the customer.

Why, just another stupid rule from Amazon. If someone buys something from my website, they pay the duties etc. They’re the one that wants it.

Also to add duties/tariffs PRIOR to the sale is impossible, completely impossible. Are you suggesting I just increase all my prices for EU marketplaces by 20% - 30%. And then what about returns, because if teh buyers just sends it back without declaring it’s a “return” we will get billed for inbound duties AND have to refund the buyer their inbound duties {Moderator edit: inappropriate language removed}

#8

I think there is an important principle to establish here. (Is it an Import or an Export?)

If a German buyer buys from the amazon.co.uk site HE is responsible for duties as he is IMPORTING to Germany from the UK.

If a German buyer buys from amazon.de he should not pay anything extra above the price shown. YOU are responsible for the German VAT (USt) @ 19% as you are EXPORTING. If the German customer gets hit with a customs charge it will include VAT plus an admin charge levied by the courier. The customer has every right to ask for a refund of this charge and Amazon will make you pay it from your funds.

However, if the package is delivered without a customs charge then you might get away with it. Some couriers (FEDEX say) can charge the customs fee directly to your account to avoid any delays. I don’t think Royal mail allow for this.

Don’t forget Amazon will provide reports to the various tax authorities. In theory the tax authorities could come to you for back taxes if you ship a lot to Europe.

If you send a large consignment to a EUROPEAN FBA warehouse you WILL have to pay the relevant VAT. There is such a thing as a BONDED warehouse but I don’t know if Amazon will operated this scheme for FBA.

The EU will be very keen that you do not have any advantages over sellers based in the EU. The so called “level playing field”.

#9

I’m 99% sure they’ve just copied and asked the same “get ready” post as they had done up before the deal was agreed.

They really need to have specifics now.

#10

Has anyone seen any specific guidance on SFN Prime sales to the Channel Islands?

We’re looking at delays of up to 72 hours to complete the relevant paperwork and possibly a surcharge to cover that admin of up to £50, which means it won’t be commercially viable nor will we be able to meet Prime delivery deadlines.

So far I’ve had nothing beyond “new policies will apply from January 1st” in reply to queries raised with seller support, which is both obvious and totally unhelpful.

#11

Wow, I don’t think I could have written anything so generic even if I tried.

#12

Not according to Amazon he isn’t. All sellers must make sure all buyer do NOT have any duties or taxes to pay.

#13

I have been wondering about this. My main product lines come in cases that cost around £110-120.

If I send them 1 box at a time will the duties be 0 as it is below the 150 euro threshold?

#14

I’m fine with being compliant, if anything it ends the silly situation that we’ve had where VAT is paid by a customer to another countries government.

I’m very confused as to what we need to do to be compliant, for example, non EU based companies are supposed to have sales tax deducted as source by amazon and forwarded to the relevant customers government, but as a seller I have no details on this.

If we send into the EU using a courier, what are we supposed to declare and how if Amazon have already dealt with the sales tax, how do we articulate this to the courier/customs border?

I’m sure it will all become clear in due course but its certainly an unknown for us right now.

Also do we need a XI EORI number to send to end customers in NI?

#15

The Amazon announcement is referring to European sales:
To maintain your European sales, you will need to send products to fulfillment centers in the UK and the EU.

NWT is correct, sales from the UK platform are domestic sales and any EU buyer will be the ‘Importer of record’ and responsible for all duties and VAT.

For your sales on EU platforms then yes as discussed on many other threads you will need to allow for all duties and VAT charges upon import to the EU.

GOV.UK VAT Guidance

And Paul73 is correct too. The FT deal does not mean that all trade is tariff free. Some items have tariffs applied and some items are simply prohibited from being exported/imported.

#16

It’s my understanding that imports under EUR150 into the EU will be tariff free, at least according the the bulletin parcelforce have put out.

Duty free, not VAT free and of course subject to being prohibited.

#17

So much to take in!

I have been told (POSSIBLY INCORRECTLY) that due to the long distance selling thresholds ending, we cannot be the ‘importer of record’ unless we are registered for VAT in that EU country the goods are being delivered to. Can anyone confirm or deny this please? Instead we just have to let the customer be the importer of record and they will be subject to the duty (if any) and VAT.

I have a list of questions as long as my arm, but one at a time hey!

#18

Just spent an hour looking through the Prepare for Brexit government help page yet again. It is about as useful as a chocolate teacup telling you very little with immense vagueness and a huge lack of clarity. I guess everyone will find out next week when the couriers have had more time to understand what’s involved? In the meantime, we are all in a type of holding pattern which is damaging to business for many obvious reasons.

#19

Hi

Can some one tell me with free trade can we send goods uk fba and amazon ships to europe warehouse like before as free trade is back on now like before

#20

It won’t happen as before (i.e: UK FBA sending goods to EU) as it’s not free trade and it’s not all zero tariffs as is being made out. This is because the UK has now left the European market and now has trade barriers to accomplish. Amazon has nothing in place to overcome these barriers such as paperwork completion, VAT accounting or duty and tariff collections.

The only way now for you to sell in the EU with little hassle is to send goods to EU fulfilment centres or operate out of your own warehouse in EU. You can send goods to EU yourself (MFN) but you will now have to complete customs, duty and tax paperwork and pay any applicable EU import tariffs if your goods are not over 50% made/produced in the UK. Couriers will also be charging up to an additional £4-£15 to help your goods enter Europe and you need to make sure that Amazon customers do not have to pay any duties/tariffs or other related charges when they receive their order as per Amazon terms.