Best service for pan EU VAT compliance
Hi all, I’ve been using SimplyVAT for years and they are decent. However now that Amazon remits VAT on EU sales since July 2021, I’m paying over £600 a month to submit tax returns to DE FR IT ES CZ PL saying ‘I owe zero euros’.
Whilst I know that I need to continue to be registered in these countries to hold stock for pan EU FBA, it seems like a waste of money paying so much for the compliance.
What are people using? Is anyone doing software only and having a good experience? Or submitting themselves? I hear bad things about Avalara, have been speaking to AVASK, and am just thinking there must be a way to not have to fork out hundreds of £ a month once registered and only selling with Amazon with EU FBA.
14 replies
Seller_fTHw0bbzSUL9L
We too are in the same situation and have been wondering this.
However, although the returns themselves are often zero or very low amounts (because of B2B, etc.), the data processing on their end appears little changed. I get the impression their process is pretty much a case of importing reports into templates and presenting/filing the outputs.
Granted, I am not aware of them having made mistakes, and they are responsive to questions, but I’m not convinced a great deal, if any, auditing of the reports takes place, so I don’t think the workflow has changed that much, if at all.
I think time will tell if the work level required has dropped because it’s a competitive market, and we will see better-priced offers. At the moment, I’m unfortunately not aware of any that don’t come with bad reviews.
Seller_XYgZGWveAdEhx
their process is pretty much a case of importing reports into templates and presenting/filing the outputs.
I think you’re right. Though not sure where those calculations appear in any audit trail.
And anyone know what VAT Services on Amazon are? Is that a rebadged Avalara?
When I spoke to AVASK they said their Amazon promotion is focused on registrations, but it includes 6 months of free filings so I’ll see if there’s a way to take advantage of that.
Cheapest software I’ve seen is LOVAT but not tried it.
Seller_XYgZGWveAdEhx
Still interested in thoughts here.
Currently I’m considering: using the Amazon VAT Services promotion I signed up for with AVASK to move compliance from Simply VAT to that. That gets me 6 months free. Then move to AVASK’s normal service after that, which is cheaper than Simply VAT.
I also sell on my own store and am looking at how to manage VAT there. Has anyone got experience reporting VAT and using MCF (multi channel fulfilment - i.e using pan EU FBA for non Amazon sales)? I think I’d need to register for OSS, but I’m also wondering if I only sold to DE, FR, IT, ES, CZ, PL from my own store then if it would be possible to avoid OSS and account for VAT in the same VAT returns that I have to file for Pan EU.
What fun.
Seller_fTHw0bbzSUL9L
What costs were you seeing from AVASK outside any promotional period?
Seller_XYgZGWveAdEhx
I haven’t yet got that far as I still use Simply VAT, but when speaking to AVASK they went to a lot of effort to put me off using Amazon VAT Services (even though the offer I’d signed up to runs through them). This is what they said to me on that question:
Just to detail the differences between the AVASK service and the Amazon service:
- Commonly due to the Amazon service solely relying on a software to calculate the VAT returns, there are frequent mistakes due to the software being inflexible. This is avoided with AVASK due to your Indirect Tax Consultant (ITC) checking these reports.
- Not only do you get a dedicated ITC, who you can receive unlimited consultancy at no extra cost, you will always have someone to resolve any issues as they arise. With Amazon this is not the case, as the service is excluding consultation and a tailored approach.
- The Amazon Service is an ‘add on’ service, meaning for any extras you will have to pay additional. While with the AVASK everything you require is already in the price, which means you as a client will have less of a headache.
From my POV main benefit is probably they have someone to calculate the net owed if you have off Amazon sales, e.g. your own store. But I think I could outsource that for cheaper than their full service.
Seller_saK5Ah2SaNYjL
I recommend Avask because they have never let me down.
I was looking at PAN EU several years ago and the horror stories about Avalara were astonishing. Late filings, thousands in fines, no thanks. I still see those same stories today.
I went to a “PAN EU Summit” at Amazon HQ in London. They made it sound so grand 
Avask sometimes cut it a bit fine, where I have 2 days to pay. However, I’ve never been late filing or fined. They are not perfect. In December, they said my FR VAT was EUR 43.00 when it was actually EUR 93.00. All because of a typo. Still, I wasn’t fined and FR VAT owe me thousands in import VAT.
Seller_saK5Ah2SaNYjL
Oh and you can negotiate with Avask. I wasn’t sure if I wanted to continue with PAN EU post Brexit.
When I gave them notice (90 days) I got a substantial reduction.
Seller_XYgZGWveAdEhx
Top tips @Aroha thanks - are you on the full package, or the Amazon Tax Services promotion?
Seller_XYgZGWveAdEhx
One thing I’ll also mention which may be relevant to some of you. I have my own (Shopify) store too and was selling across Europe, shipping from the U.K, so signed up for IOSS which is another £200 a month via SimplyVAT.
I worked out I could both use FBA / MCF for Shopify orders, shipping mostly domestically from FBA warehouses, and if I constrained the countries I sell to on Shopify to DE, FR, IT, ES, PL, CZ - which was 90% of sales anyway - I could avoid having to sign up for OSS. So save £200 a month and get quicker shipping, with no extra VAT registrations.
Seller_fTHw0bbzSUL9L
@La_Menagerie
Have you tried asking SimplyVAT for a discount?
