Vat on sales to EU


#32

Because you complete a customs declaration including what the item is and value. If you do not use DDP and cover the costs yourself, then the recipient will be charged.


#33

The Ireland Protocol may well muddy the waters. I only sell on the UK marketplace and ship from the UK but have turned off the Republic of Ireland as a sales destination until this can be clarified. Most of my products are LL by Royal Mail so I will not be able to do DDP with them.

The parcel motels in N.Ireland have also suspended their services to customers south of the border until this has been clarified. Unfortunate how a protocol to remove divisions between the North and South have actually created them.


#34

We are selling on FR and DE, VAT registered in those countries. As of Jan 1st AZ are deducting the VAT from our sales (ie something we sell for €23.73, they have charged the customer €19.94) - Can anyone tell me how this makes sense? We then have to declare the 16% VAT in DE, but from only €19.94?? When our sales price is €23.74 for the exact reason that that has the 16% built into the price??


#35

so until July we can send items under 22 euro to Europe and not pay vat in the uk or the destination country?


#36

For sales and offers on EU marketplaces:

Amazon VAT Calculation Services are, in my opinion, correctly setting the VAT, or lack of based on legal requirements for VAT - sellers however need to update their marketplace offers to correctly reflect a sale that has no VAT component, but needs to be shipped DDP.

Since VAT should not be charged at point of sale on items sold as MFN from the UK then offers that are MFN from the UK should not have a VAT included code. If you MFN from UK to Germany for .de marketplace orders, your offer should not have a VAT component (as VAT is not charged). Your offer should be a A_GEN_NOTAX (I forget the exact name).

So an item that costs EUR23.73 on .de but is A_GEN_NOTAX will be advertised and charged as EUR23.73 to the German customer. Your sale then is EUR19.94 with EUR3.79 to cover the DDP charge you will incur.

You are no longer distance selling into Germany, it doesn’t exist, so being registered for German VAT for UK MFN orders is pointless. Until July at any rate.

Your case might be slightly different as it falls below the EUR22 threshold. At present you can probably ship it as EUR19.94 with no VAT and have it pass as a low value import with no VAT to be paid either. It is all quite complicated depending on the value of the sale.


#37

That would be my understanding. Beware however that if you sell multiple items on one order you may have to split them into multiple shipments to keep under EUR22 or pay to send them DDP together.


#38

So an item that costs EUR23.73 on .de but is A_GEN_NOTAX will be advertised and charged as EUR23.73 to the German customer. Your sale then is EUR19.94 with EUR3.79 to cover the DDP charge you will incur.

So I need to set every ASIN as A_GEN_NOTAX? Then AZ will charge the correct 23.73 and not 19.94. Any idea how to do that? I have seen the term A_GEN_NOTAX in passing many times, but can’t for the life of me think where it is?


#39

Yes, it is the setting under offer on each listing.


#40

Thanks so much bud. Doing that on 100k ASINS is a bit daunting, but it’s better than not being able to sell in FR and DE. I will speak to the relative people in work tomorrow, as there must be an easy way to do this as an import/export file. Thanks again so much my friend.


#41

BTW - this is, as far as I know at present, a workaround to ‘fudge’ tax and offer settings to work. I’m not sure how it will work in July with Amazon collecting the VAT up to EUR150 sales and VAT registration, OSS and this setting.


#42

Good luck on that. We have a small inventory that was created manually, I couldn’t find a way to change the tax setting in bulk exporting that inventory, but if you do find a way, please let me know!


#43

Peter - I am planning to delete all my inventory that is over 22 euros. (I mainly only sell cheap items FBM anyway) I will then then my holiday settings off.

I am on Amazon Vat Services. Having read your helpful messages it sounds like I don’t need to make any changes. If someone ordered more than 1 unit and it came to a value over 22 euros I would split the shipment.

Do you know what Amazon would do with the cost?

For example Item A is 21 euros. A buyer purchases 2 of them. Would I still receive 42 euros?

Thanks


#44

You need to send your stock to an Amazon warehouse in EU yourself.


#45

At present I believe if you are using VCS and your products have a General VAT code Amazon would remove the VAT from the final sale. I haven’t heard from anyone selling sub EUR22 with VCS enabled. If your offer is 21 Euros with a general vat code then the customer will only be charged the EX-VAT amount and you’ll only receive the ex VAT amount for each regardless of quantity.


#46

You can set the “default” product tax code from your account settings but “A_GEN_NOTAX” isn’t one of the options.


#47

Thank you. I think I will keep my holiday settings on for a bit longer.


#48

Thanks PeterB, I assume we need to go into each EU marketplace and amend it on each individual market place, as opposed to doing this from the UK marketplace (as that will screw up the UK VAT) - am I understanding this correctly? Sorry if this is a stupid question!


#49

We have a couple of things already on A_GEN_NOTAX and even they have sold at a lesser price, so I’m not sure setting everything to this tax code will work.
ie - we sold an item for €6.31 which has always been set to A_GEN_NOTAX, prior to Jan, we were selling for €6.31, but now AZ is forcing the sale through as €5.26. This really is a huge issue. So much of what we have sold will now be sold for a loss as profit margins are so tight on so many products. I can’t see a way around this? Don’t supposed anyone knows if having a default tax code of ‘A_GEN_STANDARD’ would bypass the A_GEN_NOTAX set on an individual item? I thought the default tax code only came in as a default when nothing was set against an ASIN?


#50

Hi,
We got same issue here. We got about 50 orders form the whole weekend, where 0 VAT rate has been applied to orders going to France and Germany. But we are VAT registered in those countries. Really don’t know what to do now?


#51

You can do it in bulk bud.
Download inventory file of all inventory on the region you’re working on.
In that flatfile is a column ‘product_tax_code’
Set it to that A_GEN_NOTAX for the line.
Then upload the flatfile.

Hope this helps bud, though as I said in previous message, I’m unsure this will work as things we have set on A_GEN_NOTAX are still being sold at the lesser price.