Amazon VAT calculation Service and Pan EU

[samuel5]

Hi

Anyone here that trades on Amazon Pan EU and uses their VAT calculation service?

We are having a nightmare with the EC Sales list that we have to submit to HMRC as there are so many incorrect VAT numbers that Amazon provide us for the customer.

Just wondered how anyone else gets round this?

Thank you

Sam

 

[crackerjackcommerce]

Hi Sam, we used the PAN EU / Avalara promotion and joined March 2018. Good news is extra sales with very little change to our workflow. Bad news is that the whole on-boarding process and VAT filing was very time consuming and stressful.

Now that it is fully live, it is working well. You have to trust Amazon/Avalara of course to calculate the correct figures! When our promotion period ends then we will move away from Amazon and Avalara and use CBV.

My two main bits of advice:

1. do not enable PAN EU until you have completed the VAT registration and have the VAT numbers, otherwise you will be liable for retrospective VAT filings/returns.
2. signup and use Gurpreets CBV programme instead of Avalara promotion. Their website is: https://www.crossbordervat.com/

There is lots of discussion about this on the Amazon seller forums. Also, I would recommend you speak to Gurpreet as he is so knowledgeable and helpful I hope he will help you.

Good luck.

 

[Pish_Pash]

at first glance the list some of the Customer VAT IDs Amazon provide via their list seem wrong, but the problematic VAT IDs often just need the country characters added at the front - I've noticed a lot of Spanish & Italian VAT IDs cause problems...for example Amazan might provide a Spanish VAT like thus B123456 ...whereas to validate on the EU VAT Validator website (& HMRC) it needs to be ESB123456.

I upload my my EC Sales list in bulk (via a CSV file exported from my database) ...it doesn't take long going this way.

 

[Andy777]

I do sell via the PAN-EU program and I use VATGlobal.com for all my VAT returns. They also handle the EC Sales list. Don't know how they handle the wrong VAT numbers though, they have never asked me about it...

 

[samuel5]

Thanks guys, we are currently on the Avalara program but find the service poor but it is free so can't complain!

We are looking to trade on Amazon.com and understand this to be a nightmare with the different tax rates depending on what state etc.
Can anyone recommend a company to manage the VAT in the US for us?

Thank you

Sam

 

[Andy777]

In the US it's not VAT you manage, but Sales Tax.

And yes, the situation is VERY complex. You have to basically register for Sales Tax in dozens of States, do returns etc. It will be very expensive and cost you at least £5k+ in initial fees and then monthly returns.

Here's a great website/blog that covers it all in detail:

https://www.taxjar.com

 

[Mister B]

Thanks guys, we are currently on the Avalara program but find the service poor but it is free so can't complain!

We are looking to trade on Amazon.com and understand this to be a nightmare with the different tax rates depending on what state etc.
Can anyone recommend a company to manage the VAT in the US for us?

Thank you

Sam

We started off in the US with Meridian, but they closed their operation down and were switched over to a firm called Sovos Compliance. Must confess that they are very, very efficient.

You really do need to undertake due diligence and speak with a professional before starting out though. Once you register for the states you may then become liable for both state level and federal level corporation tax/filing of returns.

To be honest it's a real minefield and unless you plan to tackle it in a big way, I would steer clear.