UK ltd company(not VAT registered) selling in FBA Germany - VAT registration query
Hi ,
Could someone advise on the below:
UK company ( not registered for UK VAT number as revenue is below threshold)
Currently selling only in the UK, however I would like to start selling in Germany FBA.
I am aware German VAT number+ EU EORI numbers are required.
However does UK company need to register First for UK VAT in order to proceed and register for VAT in Germany?
Or is it allowed to proceed with registration for DE VAT number with the UK company without UK VAT number?
If you use Tax services in AZ (e.g.Taxually or Avalara) can you reclaim VAT paid on imports in DE? and also can you reclaim VAT paid on AZ fees and advertising?
I have already send query to UK accountants however I have been given different replies so decided to ask here if someone has the experience.
Many thanks in advance.
8 replies
Seller_esvgLzKXw2YAl
I’m not 100% sure, but think that generally the other tax authorities expect you to be registered in your own country first.
But if your not yet at the point of registering for VAT in the UK, are you sure that the additional expense of registering in other countries, is really worth the effort?
Bear in mind that if your not registered in the UK, you cannot claim back the VAT on your purchases etc, so any VAT added to your sales, will be at the full VAT rate of that particular country.
I believe it’s currently 19% (But could be wrong) in Germany.
So every single sale you make in Germany, will be for an additional cost of 19p in the pound.
And to add to that, bear in mind that there is a minimum registration period, which I think is 2 years in Germany. So you are essentially signing up for VAT returns for the next two years, with no way of backing out of it.
Seller_7VbclcPFFRTnc
have you tried FBM to Germany first to see if there is a call for your products ?
Seller_tqs1pWHZqsQtK
Thank you for your replies.
I already have UK EORI number and assume at some point next year I will be VAT registered in the UK as well.
I already tried FBM from UK to Germany & have sold some units and would like to try FBA as this will increase the conversion rate as currently shipping times are longer if item is shipped from UK to DE.
Neil in regards to minimum reg period for VAT in Germany does that mean even if business is not going good &stop selling in Germany I cannot deregister and need to fill nill VAT returns for 2 years?
Do you use tax services available on Amazon (e.g.Taxually or Avalara) or you appointed accountant outside of AZ to handle VAT reports and accountancy for German market?
