UK / EU Trade and Cooperation Agreement (TCA)


#21

Thanks for that!
Do you know if its possible to turn off VAT calculation in only my European countries, and keep it on in UK.
Otherwise its a matter of changing all of my tax codes on 5 marketplaces!


#22

Hi, I don’t believe so no. Is there a reason you would need it on for UK? If turned off it just means all pricing is VAT inclusive. I have not seen any issue with this. Would be good if @Gulliver_on_Tour describes the issues he has had since turning it off for UK?

The only other workaround I can think of, which I am not sure if anybody has tried. Is leaving VCS turned on, but removing the VAT registrations for the EU countries you are registered in. It may make no difference as Amazon may still to decide to remove the UK VAT element on the DE site for example. They really shouldn’t though if they expect it to be delivered DDP.

There is no official word from Amazon on this as far as I know and when I reached out to seller support they basically said they cannot give tax advice.


#23

So we turned VCS off yesterday. This solved our EU market issue, which was if we told AZ to sell something for 10, they would sell for 8 instead. Turning VCS off has fixed that and we are selling for the price that we say sell at (great). But as VCS is either on or off, there’s no on in UK but off in DE, it has meant that AZ is now showing 0 VAT on all of our UK sales. I believe we are now changing that within our Order Management Software (Linnworks) so that our invoices say 20% VAT instead of 0%. I hope this helps, someone at least :rofl:
The reason it being off is an issue for us (I think, though not my department) is that AZ remits our UK VAT. We have no clue what will happen now it’s off.


#24

Where do you see where these are in AZ? Do you have to manually search for them?


#25

Well Amazon confirmed to us that with VCS turned off all prices would be inclusive of VAT. So on our UK listings it does not show a breakdown of VAT, but that is just included in the price and not displayed seperately. I guess if you have a lot of business customers this is the negative.

For the invoice upload, this is under the normal order management page and last tab about invoice upload.


#26

Regarding FBA Export Program: how this will work from now on for UK sellers who are non-VAT registered? I now sell only in UK but I have FBA orders placed by customers in EU…will Amazon handle all export documents? I’ve obtained a GB EORI code, it’s enough?


#27

Just in case you haven’t found answers - 2.1 I don’t think you would be the importer of record so VAT isn’t reclaimable. 2.2. They are part of your UK VAT Returns but zero rated.


#28

I’ve been trying to ask UPS about this.

So far as I understand it we need to send a Commericial Invoice x3 and a Power of Attorney x3 hard copy with each parcel (or shipment ?- not quite sure)

Alternatively I am really hoping to use the below paperless method
=https://www.ups.com/us/en/services/international-trade/paperless-invoice.page

I’ve tried to enrol with paperless but no luck with that, so am trying to get help from UPS with that.


#29

It seems that if you have a DE VAt number for example, or are registered with Amazons VAT service, they are deducting VAT from your sales.

If you are NOT VAT registered in DE, and do NOT use Amazons VAT service, they are not deducting VAT from your sales. Due to UK to EU sales now being vat exempt.


#30

They ARE subtracting the VAT on my French and German Accounts. It looks to me like their fees will be less though as they take 15% of the reduced amount. My real concern is if VAT is charged again by the customs people.
With my Australian account I can quote the Amazon VAT number on the Customs DOC as per Amazon.com.au instructions. Where are the instructions for the EU?


#31

As quoted by Amazon - In order for products to benefit from the zero tariffs, they must meet the specific rules of preferential origin established in the Trade and Cooperation Agreement (TCA) signed between the European Union and the United Kingdom. (This means you don’t pay tariffs sending to EU from UK!)


#32

You do if your items are made in China.


#33

They are deducting an amount equal to VAT but it is just a reduction in the selling price, they are not actually collecting and remitting any VAT. There is not currently a system in the EU the same as Australia operate for VAT paid imports.