Amazon not charging the VAT for EU orders but expect us to deliver DDP?

Discussion in 'Ecommerce Forum' started by samuel5, Jan 4, 2021.

  1. samuel5

    samuel5 UKBF Regular Full Member

    281 19
    We are seeing no merchant fulfilled EU orders paying the VAT, despite it being sold with VAT included.

    For example, an item on amazon.fr is being sold for €53.82 with the France VAT included, but the buyer is only paying €44.85 net.

    Amazon requirements are to ship all EU orders DDP (duty and VAT paid) so our courier will pay the $8.97 VAT and charge us for it.
    But this way we will end up with $35.88 net (44.85 - 8.97) so will be out of pocket?

    The only logical explanation for this is for the customer to pay the VAT their side but this will go against Amazons requirements to deliver DDP.

    Amazon support are a nightmare and cannot advise us!
     
    Posted: Jan 4, 2021 By: samuel5 Member since: Apr 25, 2010
    #1
  2. JamieM

    JamieM UKBF Ace Free Member

    2,322 350
    Are you registered for VAT in France?
     
    Posted: Jan 5, 2021 By: JamieM Member since: Mar 22, 2006
    #2
  3. samuel5

    samuel5 UKBF Regular Full Member

    281 19
    Yes
     
    Posted: Jan 7, 2021 By: samuel5 Member since: Apr 25, 2010
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    26,286 3,218
    Stop selling into EU until you can figure out what to do.
    Do not expect advice from Amazon. Look elsewhere or increase prices to cover your payments.
     
    Posted: Jan 7, 2021 By: Mr D Member since: Feb 12, 2017
    #4
  5. consultant

    consultant UKBF Legend Staff Member

    5,772 820
    Not sold on Amazon for a long time, but surely if you charge €53.82 that is what Amazon gives you (less fees)?
     
    Posted: Jan 8, 2021 By: consultant Member since: Jan 21, 2008
    #5
  6. lesliedocherty

    lesliedocherty UKBF Ace Free Member

    2,281 317
    No, i just looked at my orders into France, and they have deducted the VAT, a £220 jacket was charged at €203 instead of €240'ish

    And yes, we have just turned off all Int settings just now
     
    Posted: Jan 8, 2021 By: lesliedocherty Member since: Jun 17, 2006
    #6
  7. consultant

    consultant UKBF Legend Staff Member

    5,772 820
    Wow, that's a pain. Do they know you are VAT registered?
     
    Posted: Jan 8, 2021 By: consultant Member since: Jan 21, 2008
    #7
  8. JamieM

    JamieM UKBF Ace Free Member

    2,322 350
    I'm not sure on this but I think the way Amazon is doing it is the only way it can be done before OSS is implemented.

    For now, I think you would need to increase your prices to reflect it.

    For FBM from UK to France I don't think you can include VAT because it is an exported order. I think you can enter a tax code in your inventory details that means tax won't be included in the displayed price.
     
    Posted: Jan 8, 2021 By: JamieM Member since: Mar 22, 2006
    #8
  9. lesliedocherty

    lesliedocherty UKBF Ace Free Member

    2,281 317
    Yes, spoken to a few people and its standard with everyone, they have just stopped charging VAT on everything into Europe.
    They dont pay the vat bill, so they don't care i guess
     
    Posted: Jan 8, 2021 By: lesliedocherty Member since: Jun 17, 2006
    #9
  10. samuel5

    samuel5 UKBF Regular Full Member

    281 19
    I have opened up multiple support cases with Amazon asking why we are only receiving the net amounts for our EU orders fulfilled from the UK.

    They keep replying with this:

    I understand from your message that from the 1st January some orders have not been VAT charged.

    After investigation, I will inform you that all the order have been shipped from UK.

    Please note UK formally exited the EU’s Single Market and Customs Union on January 1, 2021 (“Brexit”). From this date, the UK introduced a new set of VAT rules which may change the way that VAT is accounted for on sales made by sellers to UK customers.

    From January 1, 2021, Amazon will be responsible for collecting UK VAT on the following sales of goods delivered to customers in the UK, who are not UK VAT registered, where ordered through any Amazon storefront:

    Goods delivered from seller inventory stored outside the UK with a shipment value of up to £135; and
    Goods delivered from seller inventory stored in the UK, irrespective of value, where the seller is not established in the UK.

    Where either of these supplies take place, Amazon will calculate and collect UK VAT from the customer at checkout and remit this directly to the UK Tax Authorities. Sellers will not receive the UK VAT amount in their disbursements and will not be required to remit these amounts to the UK Tax Authorities.

    There are exceptions for some sales of goods delivered to customers in Northern Ireland, for which you may remain responsible for accounting for any UK VAT due.

    Sellers will remain responsible for accounting for any UK VAT on any other supplies including supplies to UK VAT registered business customers. The methodology described in this document will continue to apply for these supplies.

    For more information about how Amazon will calculate and collect UK VAT on these supplies, visit the next UK VAT on eCommerce Legislation help page:

    https://sellercentral-europe.amazon...02084570&referral=ADL5QK4GT4FIA_ATYO9ULDJ5K7L


    And I keep replying with this but not getting anywhere:


    You have quoted that VAT is collected on our behalf and paid directly to the UK Tax Authorities if the following apply:

    1) Goods delivered from seller inventory stored outside the UK with a shipment value of up to £135; and
    2) Goods delivered from seller inventory stored in the UK, irrespective of value, where the seller is not established in the UK.

    None of the example orders I have supplied you meet any of the above.

    1) The seller inventory is inside the UK, not outside.
    2) We are established in the UK

    Since the orders were all fulfilled from the UK to EU destinations then you should not be paying any VAT to the UK Tax Authorities as you have claimed.

    We keep getting told incorrect information regarding the new Brexit VAT requirements.
    Please kindly forward my email to someone in support who can look into this as we should not be receiving the net amounts as we will need to pay the VAT upon export as Amazon terms are to deliver goods with all taxes paid.
     
    Posted: Jan 10, 2021 By: samuel5 Member since: Apr 25, 2010
    #10
  11. JamieM

    JamieM UKBF Ace Free Member

    2,322 350
    It looks like they are simply sending you the incorrect template response rather than looking at your specific transaction.

    However, as I said before I don't think you can charge VAT on an order being delivered from UK to France so I think they are dealing with it correctly by giving you the net amount. The order is an export and has to be zero rated, even if you are VAT registered in France. You can still do DDP to pay the import VAT on behalf of the customer. That is a completely separate arrangement.

    If you want to receive the full €53.82 then I think you have to set a tax code in the inventory detail. It think it's A_GEN_NOTAX if you want to try it. It would make sense if there was a global setting for all of your amazon.fr inventory for example but I'm not sure that exists.
     
    Posted: Jan 11, 2021 By: JamieM Member since: Mar 22, 2006
    #11
  12. apricot

    apricot UKBF Regular Free Member

    378 37
    I ve checked my account and I receive full payment. I am Fr vat registered though. Amazon might be paying vat on your behalf
     
    Posted: Jan 14, 2021 By: apricot Member since: Apr 7, 2012
    #12
  13. Mr D

    Mr D UKBF Legend Free Member

    26,286 3,218
    You are probably arguing with seller support in a foreign language who are following the on screen response they have.
    And they have zero chance of influence with any other departments.
     
    Posted: Jan 14, 2021 By: Mr D Member since: Feb 12, 2017
    #13
  14. Mr Dibb

    Mr Dibb UKBF Contributor Free Member

    40 3
    You need to double check if Amazon are charging your customer VAT. If they are, then obtain the VAT number and supply it to your carrier with a mark that VAT has already been paid and should not be charged. Contact your carrier on how to do this. The Norwegian VOEC has been running a while, so they should know how to do this.
     
    Posted: Jan 14, 2021 By: Mr Dibb Member since: Jun 1, 2011
    #14
  15. JamieM

    JamieM UKBF Ace Free Member

    2,322 350
    Can you please confirm that you are referring to FBM orders?
     
    Posted: Jan 16, 2021 By: JamieM Member since: Mar 22, 2006
    #15