This is query for Amazon sellers that are VAT registered in an EU country that will be fulfilling orders themselves (MFN) from 1st January into the EU.
We are currently going round and round in circles figuring out how to ship goods into the EU DDP (an Amazon requirement) without double taxation.
We are VAT registered in Germany and therefore we charge the customer VAT at the point of sale and this is remitted to the German government monthly on our German VAT return.
We have a GB EORI number only - we do not have a German EU EORI and do not have a presence in Germany.
How do we prevent import VAT from being charged upon entry into the EU i.e. to avoid a double charge (since we’ve already collected it at the point of sale)? Do we need to indicate that VAT has been paid on the customs declaration along with our German VAT number to prevent import VAT from being charged?
I’ve contacted DPD, FedEx and DHL Express and no-one can give straight answer to the question but it must be affecting so many UK businesses that are VAT registered in EU countries.
DPD say that shipments to Germany will go through their Netherlands cluster and will be charged at 21% VAT and we would need to register for VAT in The Netherlands in order to claim it back(!). So this would mean we’ve remitted and charged German VAT at 19% and remitted and we’ve paid 21% to the Dutch and the only to get that back would be to register for VAT in Holland…
FedEx say that import VAT is due upon entry into Germany it will need to be collected regardless. So how do we avoid the double charge?
DHL don’t know but will try to find out the answer (still waiting).
There must be many, many sellers in the same position as us - could a kind soul put us out of our misery and provide any clarification as to how you will be fulfilling orders on DDP terms without double taxation?
Many thanks in advance!