Amazon and tax obligations in other EU countries

Discussion in 'Ecommerce Forum' started by popalock, Jul 31, 2019.

  1. popalock

    popalock UKBF Newcomer Free Member

    10 1
    hi, I'm going to start to sell on Amazon across the EU and I got a message from them asking me to provide my tax registration in Germany. I'm a UK registered business so if I sell on the Amazon.de site do I have have any German tax obligations like VAT? And what if I have Amazon FBA dispatching my goods, potentially from Germany? I'm confused by Amazon's wording "or a formal acknowledgment that they are not generating any taxable sales in Germany". What determines the location of a sale in the ecommerce universe? the domain? from where the goods are dispatched?

    Appreciate "no deal" Brexit is just around the corner but exclude that for the time being if you don't mind. Below is what Amazon have precisely asked:

    "
    German tax obligations
    18 Jun 2019
    Amazon must obtain a tax certificate from sellers who are required to be tax registered in Germany, or a formal acknowledgment that they are not generating any taxable sales in Germany, according to the amendments in the German VAT Code (Sec. 22f UStG).

    All sellers should take action now.

    If you are required to be German tax registered, upload your German tax certificate (F22). If you are not required to be German tax registered, you must acknowledge the declaration that you are not generating taxable sales in Germany.

    Sellers based outside of the European Economic Area who fail to comply will no longer be able to sell on amazon.de or to customers in Germany. Sellers based in a European Economic Area country (including Germany) must take action before October 1, 2019.

    To learn more about the legislation, see sample images of the correct documents required and review other FAQ, visit Comply with your new German tax obligations
    ."
     
    Posted: Jul 31, 2019 By: popalock Member since: Mar 2, 2013
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    15,136 3,211
    Is your business currently based in the EU?
     
    Posted: Aug 1, 2019 By: Scalloway Member since: Jun 6, 2010
    #2
  3. popalock

    popalock UKBF Newcomer Free Member

    10 1
    Well yes, it’s a UK registered business (so still part of the EU).

    I want to sell on all the European Amazon platforms and ideally ship from local FBA centres. But I don’t want nightmarish tax returns in multiple jurisdictions.
     
    Posted: Aug 1, 2019 By: popalock Member since: Mar 2, 2013
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    16,196 1,804
    If you store goods in a foreign country in EU there is no vat threshold. You register for vat in each country you are storing stock outside your own from day one.
     
    Posted: Aug 1, 2019 By: Mr D Member since: Feb 12, 2017
    #4
  5. popalock

    popalock UKBF Newcomer Free Member

    10 1
    ok, so it's the location from where the goods are physically held determines if I have tax obligations (in that country). But the website domain doesn't change anything.

    It sounds like Amazon then is coming down on those who use FBA in multiple countries.
     
    Posted: Aug 1, 2019 By: popalock Member since: Mar 2, 2013
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    16,196 1,804
    Its them avoiding your tax liability.

    If you don't do things right they become jointly liable. Understandably they don't want to have to bump up fees for all sellers to pay for the actions of a few so they seek to avoid the joint liability.
     
    Posted: Aug 1, 2019 By: Mr D Member since: Feb 12, 2017
    #6
  7. popalock

    popalock UKBF Newcomer Free Member

    10 1
    thanks again. Btw for those of you who want all the ins & outs on this topic, there's an excellent post I found on the subject on the Andrew Minalto website under the "VAT for Amazon Sellers". Just google it. Unfortunately I'm unable to post links on the forum as I'm too much of a newbie
     
    Posted: Aug 1, 2019 By: popalock Member since: Mar 2, 2013
    #7