EU/Amazon vat changes from July
I just received an email from amazon notifying us of upcoming changes to how vat is handled in the EU. It includes the following passage:
From 1 July 2021, Amazon will collect VAT on the following sales of goods delivered to B2C customers in the EU ordered through any Amazon store where;
- Goods are delivered from inventory stored outside the EU with a parcel value of up to EUR 150 – This is referred to as the Import One-Stop Shop;
or 2. Goods are delivered from inventory stored in the EU where you, the Selling Partner, are not established in the EU.
When either of these supplies take place, Amazon will calculate and collect EU VAT from the customer at checkout and remit this directly to the EU tax authorities. You will not receive the EU VAT amount in your disbursements and will not be required to remit these amounts to the EU tax authorities.
Does that suggest that if UK sellers are only selling in the EU via FBA (using EU fulfilment centres) then we are no longer required to be VAT registered in EU countries? Also, does this suggest that the VAT amount collected and paid by amazon is no longer included in our turnover? I’m not sure how to interpret this, what do other people think?
Thanks a lot.
4 replies
Seller_f5cnodyVjLD4S
No, you will still be required to meet your VAT registration requirements in the EU countries in which you hold inventory.
https://sellercentral-europe.amazon.com/gc/vat-education/eu-dr?ref=sc_vat_ed_iossemail1
Seller_6fydnvOwuH7PO
Also, as far as I’ve understood you will still need to report the sales as exempt B2B sales from you to Amazon (there are 2 deemed supplies: B2B from you to Amazon and B2C from Amazon to customer). See page 14 here: https://ec.europa.eu/taxation_customs/sites/taxation/files/vatecommerceexplanatory_28102020_en.pdf
Also, B2B sales are outside the scope of the changes, so you will still need to report those in your VAT returns yourself. This includes remitting VAT for local B2B sales like before.
I’m not sure which “turnover” you are asking about. I think VAT isn’t usually included in any turnover calculations, but I’m not in UK so I’m not familiar with UK/HMRC accounting practices.