Based in UK and selling on Amazon EU sites. What should I do from January 1st?
I’ll try to keep it super simple.
At the moment I sell on the various Amazon European sites. Average order might be £20.
Because we’ve been in the EU and my sales have been below the distance selling thresholds I’ve just been paying my VAT to HMRC this whole time.
However from January 1st we will no longer be in EU.
Currently I’m thinking of turning off these european stores because I’m not sure it’s worth the hassle for me to do 5 sets of different VAT accounting and staying on top of all that paperwork for what amounts to a relatively small % of my sales.
However I’m getting emails saying that for people in EU selling to UK Amazon will now be withholding VAT automatically from those sales.
Will something similar happen the other way around? As a uk seller selling to Europe?
What is everybody else doing who is based in UK selling relatively low value items to consumers in UK?
One other question, what about sales from EU that are made on the amazon.co.uk platform? If I get one of those are there different rules vs if I make a sale on say amazon.de after Jan 1st?
I know there have been various webinars on this topic amazon promotes but is there an easily digestible link that definitely explains the final answer on this situation?
Based in UK and selling on Amazon EU sites. What should I do from January 1st?
I’ll try to keep it super simple.
At the moment I sell on the various Amazon European sites. Average order might be £20.
Because we’ve been in the EU and my sales have been below the distance selling thresholds I’ve just been paying my VAT to HMRC this whole time.
However from January 1st we will no longer be in EU.
Currently I’m thinking of turning off these european stores because I’m not sure it’s worth the hassle for me to do 5 sets of different VAT accounting and staying on top of all that paperwork for what amounts to a relatively small % of my sales.
However I’m getting emails saying that for people in EU selling to UK Amazon will now be withholding VAT automatically from those sales.
Will something similar happen the other way around? As a uk seller selling to Europe?
What is everybody else doing who is based in UK selling relatively low value items to consumers in UK?
One other question, what about sales from EU that are made on the amazon.co.uk platform? If I get one of those are there different rules vs if I make a sale on say amazon.de after Jan 1st?
I know there have been various webinars on this topic amazon promotes but is there an easily digestible link that definitely explains the final answer on this situation?
17 replies
Seller_sFEUMUfeW5484
It is a very complicated situation many of us will be in. As you mention it’s not just shipping to the EU but what if they purchase on the UK site, does it count as a UK sale or an EU sale as that’s where the item is going but the sale took place in the UK, technically.
I’ll pass this all over to our accountants and hopefully they can make sense of it all.
Seller_x1xMSBwZsJrTE
That’s a good question hadn’t given it much thought until today when I received an FBM order for Ireland.
After we leave the EU they will have to pay VAT on the import so will the VAT be automatically charged by Amazon when the customer makes the purchase? I assume it will but maybe someone can clarify.
Seller_vIpv9uvBH6CFY
Yes. The EU had a similar directive scheduled for January as well, but they delayed it due to coronavirus for 6 months. So June-ish 2021, maybe.
Seller_YDtQChf7iSyyu
This is what I get from the Royal Mail account manager it may be useful for someone.
Now is the time to check your business is customs compliant
The transition period ends 31 December 2020
Are you Brexit ready? We would encourage you to act now and prepare for customs changes from 1 January 2021. Here’s how to use this short window leading up to 31 December 2020 to prepare to export and stay customs compliant after the transition period.
Exporting to the European Union from 1 January 2021
At the end of the transition period, we expect the EU to treat imports from the UK as it does non‑EU imports today. Customs processes are likely to change. We are working to ensure the smooth flow across borders and are well placed to manage the impact of changes to customs processing. Please keep up to date at gov.uk/transition and royalmail.com/brexit, where you will find updates on relevant information that you need to know.
Your export compliance checklist*
The following checklist will help you prepare, until we know more about the UK’s future trading relationship with the EU.
Checklist Action
Customs declarations will be required for all EU traffic A CN22 or CN23 form will be required for all items/goods (excluding personal correspondence). It should be attached to the outside of the parcels or letters
Customs data will need to be submitted electronically Provide electronic customs data for all export items/goods (excluding personal correspondence) via an approved shipping solution. For more information visit royalmail.com/
Customs clearance fees may be payable on items/goods (excluding personal correspondence) entering the EU from the UK You will need to understand clearance fees and what VAT and duties are applicable. You will need to decide how the recipient will pay these**
An Economic Operator Registration and Identification (EORI) number will be required to send items/goods to the EU from the UK If you do not have an EORI number you will need to register with HMRC for your unique business number. Visit gov.uk/eorifor more information
Items valued at under €22‡ which are currently part of the Low Value Consignment Relief (LVCR) scheme are not subject to VAT or duties Items valued at under €22‡will remain part of the LVCR scheme for items sent into the EU and not be subject to VAT until 1 July 2021 (subject to further extension date to be set by the EU)
Commercial items/goods (excluding personal correspondence) sent to the EU over €22‡ and below €150‡ may be taxed at the border and may incur a customs clearance fee in the receiving country‡ You will need to understand clearance fees and what VAT and duties are applicable
Commercial items/goods sent to the EU over €150‡ may attract VAT, duties and a customs clearance fee‡ You will need to understand clearance fees and what VAT and duties are applicable
Register to pay VAT using the Import One Stop Shop scheme (IOSS): applicable from July 2021 for exporters sending commercial items/goods under €150‡ to the EU, where you pay VAT (where applicable) on behalf of the buyer For further information visit ec.europa.eu/taxation_customs/business_en and search for Import One Stop ShopPlanning ahead
You can find out more about the government’s plans at gov.uk/transition and a guide is also available to help you prepare for the changes to exporting goods from 2021 at gov.uk/prepare-to-export-from-great-britain-from-january-2021.
