Just wondering how others are handling non IOSS B2B sales to the EU? Now we understand the tax side it is our opinion that Amazon are approaching this the wrong way. Other marketplaces take a different, and what I believe is the correct, approach, i.e.

- the sale price is net of VAT, i.e. the sales value to B2B customers should exclude VAT (Amazon currently charge the gross value including notional VAT)

- B2B customer pays VAT under EORI/reverse charge or is charged VAT on entry

- B2B customer reclaims VAT paid via their VAT return meaning that unless import fees are high, the customer's net cost of the item is lower than if they paid the gross price

The above means that on other marketplaces we just send B2B orders by normal post and not have to worry about DDP which ultimately costs the customer and ourselves more. Instead, we have to adhere to Amazon's policy of ensuring the item arrives to the customer free of additional tax. I'm sure the vast majority of B2B customers would prefer to pay the import VAT and reclaim it rather than having to pay a higher cost price. If Amazon are serious about increasing the number of B2B customers we believe they should remove the requirement for us to account for the import VAT which ultimately nobody can reclaim.

How are other approaching this? We use DDP but given the low value of our items we lose money on many sales. Also the declaration value means we overpay VAT, e.g. for an item which is normally £10 plus VAT we have to declare £12 being the net selling price to B2B but VAT is charged on top of that, e.g. £2.40, rather than being £2 which is what we have assumed for our selling price for B2C.

We recently had a large sale where we paid £120 in import VAT on behalf of a B2B customer. The cost to the customer could have been substantially lower if they were able to reclaim the VAT rather than us paying it for them.

It's so much easier on other marketplaces.

G