VAT Question for those using EFN
I’ve been thinking to ditch PAN EU after 6 years, and switching to EFN. We’ve never used EFN before now.
E.g. When you get an EFN sale on DE, where the stock is held in the UK, do the funds get added to your DE or UK account?
If they get added to your UK account, how to separate EU sales where VAT is already paid from UK sales where we still have to pay the VAT? I’m guessing there must be a report for this.
12 replies
Seller_Yja9oH7DLHk2I
You DE account in Euros.
I still use Amazon VAT services so they work this out for me. This month I had to pay 46p to the Polish VAT authority. A right pain.
EFN is mega expensive. Particularly if your items are cheap. When I set my items up based on the UK prices plus Amazon fees a lot of the listings got flagged and removed for excessive pricing.
EFN also has a terrible impact on your IPI which despite me arguing, Amazon say is how they want it.
Seller_wqciCXuQbNS4p
Good question as your thinking echoes our embryonic thoughts.
In addition to your question thoug, if a European customer returns an item bought from the UK under the EFN programme, to where is it returned? Surely, if to an Amazon address in the EU, it retriggers VAT responsibility.
Seller_saK5Ah2SaNYjL
@Mister_B Stock is returned to the UK.
Seller_saK5Ah2SaNYjL
@Paul73
My reason for leaving PAN EU is not being able to reclaim import VAT. I supplied all the documents sent to me by World Options to Avask. France owe me over 3000 EUR in import VAT. Yesterday I got this email from Avask… Bear in mind that this stock was sent over a year ago and it took us ages to get the SAD docs from UPS. We only send one product type, mugs.
Hello Annie
I hope you are well.
We have received a letter from the French Tax Office regarding your refund request. They are requesting additional documents. Please see below the list of information we will need.
Please note we need to send this information to the French Tax Office by the 20th of June 2022 for this refund request to be accepted.
• A written summary of your sale of goods: countries that you ship goods from and into France and then evidence of where those goods are then moved to within the EU/ France, plus any other countries outside of the EU these are shipped to (any non-EU arrival countries on the VAT reports).
• Proof that the goods imported are the same goods that are being sold: this needs to be supported by the shipping/commercial invoices that state the breakdown of the shipments and also commercial invoices issued to the customers with a description of the goods also.
• Further supporting evidence for goods being shipped from France to countries outside of the EU where applicable.
• You also need to provide a letter from your bank which should state the following information:
o Name and address of the company,
o IBAN and SWIFT ( BIC) of the account,
o Name and address of the bank ,
o name and signature of the account manager,
o official stamp of the bank .
Seller_saK5Ah2SaNYjL
@JR_Wristbands
Well, I sent my SAD docs 3 months ago for France. We send everything to France. So they’ve had the docs for 3 months and they want me to supply all this “proof” and official docs from my bank in 11 days or I won’t get my refund. Seriously, how am I meant to know what Amazon sent where, over a year ago?
… and proof that the goods imported are the same goods that are being sold??
Why on earth would they be different? How could we sell different goods if we hadn’t sent them? Their requests are madness.
Seller_Yja9oH7DLHk2I
I had the same problem with France. It took months to get the documents from World Options. I added the information to my supplementary sales report and managed to submit a negative return one month. I didn’t hear anything else so presumably I am in a credit situation with France.
As I now pay zero VAT to France I seem unable to get it back.
I spoke to World Options about the reverse charge process when it first came out. They didn’t seem to think it would change anything. If it now works please let me know.
Seller_saK5Ah2SaNYjL
We’re still paying VAT. Can I ask how to get it into France VAT free?
Seller_saK5Ah2SaNYjL
@Mister_B Good to know, thanks!
We haven’t sent any for a while, especially since EFN kicked in. We actually net more on EFN because of the shipping charged on it.
