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Registering for VAT in Europe - Biggest Amazon Regret

by Seller_ae51e0CJoHqCX

For my sins, I registered many years ago with Amazon and Avalara for VAT in Europe. I think I was one of the first to do it.

It is my biggest regret so far and the amount of support from Avalara and VAT services has been truly awful, with many surprises leading to penalties and alsorts of costs implemented not just by the revenues but also Amazon themselves using VAT services as a mechnaism to draw reveunue and hold your funds and compliance to ransom.

I am now going through de-registration and trust me this does not get much better and they are just doubling down by stopping services and then penalising me on top to perform these services outside of their own scope.

I'm sorry if this is not making much sense but nor is this whole sorry process that Amazon and Avalara and if anyone is thinking of getting involved and wish to talk to someone that has walked the walk, then by all means do so.

Apply to join the sellers and expand FBA into Europe at your peril. It could sink you.

Tags: Taxes
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Seller_EYDIvQ9EwmyWT
In reply to: Seller_ae51e0CJoHqCX’s post

I have the same issue. Signed up for EU VAT years ago.

Struggling to get help & Avalara no longer doing de-registrations

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Seller_EYDIvQ9EwmyWT
In reply to: Seller_ae51e0CJoHqCX’s post

I read for DE you can do tax related tasks on Elster. Will keep you updated once I am able to register and see for myself

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Seller_ae51e0CJoHqCX
In reply to: Seller_EYDIvQ9EwmyWT’s post

Fortunaely I don't use Avalara for Germany, it was switched to Singularity a while ago and to be fair they seem to have done a decnt job and I haven't had any surprises or issues with them.

Although i am wihdrawing elsewhere I will probably continue with Germany and Singularity.

I moved location and Avalara wanted 150 euros for each jurisdiction to change the address of my business. Singularity did it in Germany for free.

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Seller_EYDIvQ9EwmyWT
In reply to: Seller_ae51e0CJoHqCX’s post

Thank you for replying. I will keep you posted with my progress on the other countries as I get more information myself

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Seller_ae51e0CJoHqCX
In reply to: Seller_EYDIvQ9EwmyWT’s post

yes please do.

Unfortunately the forums are not what they were and help is really difficult as you know the mods read them and do absolutely nothing. If you have a favourite recipe or you want to discuss some fun bits they are all over it.

Avalara and Amazon have had some serious issues and it is us that have had the baby dropped in our laps. It will be us that will ultimately carry the can for their obvious negligence.

I hadn't traded in Spain for around 3 years and was paying Avalara and Amazon to file nil returns. The Spanish tax authority got in touch with me to say if I did not do any transactions by my next return date they will cancel my VAT number.

Fine by me, they cancelled my VAT number and Avalara stopped filing. Amazon and Avalara continued to charge me then on top of that the Spain tax authority whacked me with 2 penalties for failing to file.

I then asked Avalara what to do and they told me not only do I have to pay, I also have to continue to receive the notices and it was my own fault for not appealing the original notice to do transactions in Spain that led to the notice. Avalara have acknowledged that they are still my POA and Amazon are not sending them data to complete as Amazon say my VAT number is not valid. Avalara sent me a link to obtain the transaction data so I could file myself and then Amazon wanted over 100 Euros per filing to do the nil filings retrospectively.

You honestly couldn't make this up. It isn't the only jurisdiction I have issues with. On de-registering for Poland, Amazon are trying to say I have to pay for some retroactive returns whilst Avalara are saying they have been filed which date back to 2016 (yes over 6 years ago) and don't get me started on Italy penalising me from 2017 for a filing that I was not informed of at the time but they state I was informed and should pay it. This is despite all of my data been up to date and no notice of payment required until I was going through the de-registration process.

After all of this I am simply locked in.

On top of everything Amazon are saying I have to move to AVASK to obtain the same deal whilst Singularity are telling me that they have always been my tax agent since Avalara handed them the reigns for Germany a few years ago and I don't need to do anything.

You try and raise cases and they just send you in a spin with VAT services telling you to contact Avalara and Avalara saying it is a matter for Amazon.

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Seller_EYDIvQ9EwmyWT
In reply to: Seller_ae51e0CJoHqCX’s post

How did you manage to do the Italy and Poland de-registration yourself? I have been looking at the Italian site and it is very difficult to navigate.

I have had penalties from different countries over the years for not filing or late filings which I was not aware was this was being done late. The fines notices were coming in via Avalara so there was no direct contact from the tax authorities to me. I hope Avalara have not missed letting me know about fines for countries like Italy where I have not recieved any to me knowledge. How were you able to view the fines for Italy?

I think pre 2017/2018 Avalara were manualy messaging me the returns, not via Amazon VAT services. Maybe your previous data is there.

I have messaged AVASK to see their response to help with this

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Seller_ae51e0CJoHqCX
In reply to: Seller_EYDIvQ9EwmyWT’s post

Oh my lord, strap yourself in.

Regards Italy and Poland, I'm not de-registered, you have to have your affairs in order before it takes place. That's the point I am going through the mill and these issues are just not getting dealt with.

Avalara are doing the de-registration process as I requested the service prior to them deciding they were no longer going to offer it.

Italy contacted me directly and I must warn you they are 6 years behind, they contacted me out of the blue last year with a hefty bill and interest coupled with additional penalties. They were for retroactive returns that were filed way back in 2016.

This is the point Avalara have the data and did do it manually and I am not sure that when the systems were put in, it may have triggered extra filings that had already been done hence I was asking for confirmation but they just don't help you out and say it is nothing to do with them and I must have missed their notice to me.

The main issue is that your liability is with the revenue not your tax partner hence the reason why I think Avalara are bailing.

Avask offered to do all of the work for me but on a consultancy basis outside of Amazon and wanted something around the region of £4000 just for the de-registration services alone with nothing at the end of it, hence the reason for persevering.

My advice to anyone is get out of tax registration in Europe and stay out no matter your size. Even if your corporation is huge and you make a lot of transactions, the reality is that the liabilities are likely to be huge and trust me you are on your own when you hit the problem.

You can still trade in Europe without any of this nonsense and pay the additional cross border fees. I can't see for any reason how the costs and liabilities of registrations outweigh the additional costs.

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Seller_EYDIvQ9EwmyWT
In reply to: Seller_ae51e0CJoHqCX’s post

Thank you for your help, it seems as if none of the official channels are giving answers. Sorry to keep asking questions but this is very stressful.

I have noticed CZ, for last few years on Amazon it shows as "No filings applicable for this month as per the country filing timelines."

Is this the same for yours?

Reading online it states nil returns should still be filed monthly. I hope Avalara has been doing them in the background and maybe not updated it on Amazon as they were nil.

Thank you for replying.

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Seller_i38MVIJDH23AY
In reply to: Seller_ae51e0CJoHqCX’s post

I am in the process of moving to Taxually due to Avalara stopping. They have asked for lots of information and sent instructions on how to download it.

The instructions did not work so I told Taxually. They told me I needed to speak to Amazon.

I opened a case and had a call from a helpful Amazon employee (almost impossible to understand but still helpful).

I provided screenshots to her whilst on the call. She said she would investigate where the reports were and reply in the case.

A couple of days later she replied with.....

We are unable to offer tax advice please contact your tax advisor.

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