Countries
Read onlyDear all,
i live in a small country and would like to start FBA in Eu also. i'm posting here because translating to other countries would be difficult and my concerns are not related to EU specifically but regarding FBA procedures. I have prepared many things, watched videos, material for product page etc etc.
I'm almost ready to begin but i'm literally stuck on the following:
I live in a small country and i want to start FBA with one major country, It really doesnt matter if it is Italy, Germany, France, Spain, UK or anything else (it matters for other issues ofc)
1) From the information i have collected so far, i understand that when i start FBA, since i will use an amazon warehouse in another country i will have to open a VAT registration in that country.
So far, so good.
Suppose i start in France and i open a French VAT registration. How is it possible for the French VAT to sell in FBA?
Because in order for the French VAT to sell anything i understand that the products must first come under its ownership. How does this work? Does my Greek VAT issue an intra-community invoice to sell the products to the French VAT?
And how is this invoice structured? Because we have billing and shipping address. But the VAT registration will not have
any physical presence to France. And also the products must to go an Amazon warehouse in France.
How was your first invoice structured and what can you tell me about this procedure please?
2) My French VAT should issue the tax-legal receipt. I was told by amazon that i can use Amazon VAT calculation service to issue the receipts/invoices as i will not have another way to issue these invoices.
Does anyone use this service to tell me his experience? i undestand this should be straightforward (?) or there
are any limitations i should know? i wouldnt want to come to the undesired position of selling something and not be able to issue the receipt to the client
3) If the French VAT becomes profitable, is it possible somehow to tax the company in Greece or the tax will be in the French state only?
Is it possible to split taxation between the two VATs?
4) If the tax will be given to France/Germany/UK/Poland etc, is it mandatory to also open office or have physical headquarters in these countries or to be living/have presence in these countries for some days/months of the year?
Thank you all for any help is most appreciated!
Your questions are too many and FAR too complex for any of us to answer on a seller forum. These are things you need to do your own research on. Amazon's 'Seller University' is the best place to start.
You don't need to live in a country to sell there via FBA.
You will need to pay VAT and any other taxes due in the country you sell in i.e. the country where you are adding value and making profit. Amazon VAT services can help with this as there maybe different rules in each country making it very complicated.
To try to shift your profits into another market which may have lower taxation should only be attempted by highly skilled, highly exoerienced, highly paid international accountants. You're probably not as big as Amazon yet!
Lookout for any import taxes that may apply even before you make any sales/profits.