Taxually costed me over €4,000 to Amazon
I’ve successfully became a 6-figure seller in the US market within 1 year before I decided to move my product to Europe in the UK and Germany market. VAT normally takes 4-12 weeks to be approved, so I sent my products to the warehouse (65-70 day shipping) shortly after the filing process started. Per the Amazon guidelines, you are allotted 3 months of selling in the markets without, or in process of, VAT before your account is not active. To my surprise, Amazon only granted this for UK and not Germany. Inventory was left in this warehouse before it began to collect some serious long term storage fee debt.
I used the Amazon recommended 3rd party tax provider “Taxually” to file these documents and they screwed this entire filing process up so badly. They somehow “lost” many files and requested for the same files weeks apart; and they kept confusing my business name for another name, resulting in my registration being rejected numerous times. This service alone costed almost 1,000 euros. To my mistake, I should have just shipped my inventory elsewhere and cheaper, but they promised on many occasions that my VAT filing would be resolved month after month. I foolishly believed every time.
After almost 6 months, I was recently registered in Germany, and still not U.K. Together it costed over €4,000 in 6 months to file with Taxually and my issue is still not resolved. I wish I stayed in the US market where things were much more simple.
Taxually costed me over €4,000 to Amazon
I’ve successfully became a 6-figure seller in the US market within 1 year before I decided to move my product to Europe in the UK and Germany market. VAT normally takes 4-12 weeks to be approved, so I sent my products to the warehouse (65-70 day shipping) shortly after the filing process started. Per the Amazon guidelines, you are allotted 3 months of selling in the markets without, or in process of, VAT before your account is not active. To my surprise, Amazon only granted this for UK and not Germany. Inventory was left in this warehouse before it began to collect some serious long term storage fee debt.
I used the Amazon recommended 3rd party tax provider “Taxually” to file these documents and they screwed this entire filing process up so badly. They somehow “lost” many files and requested for the same files weeks apart; and they kept confusing my business name for another name, resulting in my registration being rejected numerous times. This service alone costed almost 1,000 euros. To my mistake, I should have just shipped my inventory elsewhere and cheaper, but they promised on many occasions that my VAT filing would be resolved month after month. I foolishly believed every time.
After almost 6 months, I was recently registered in Germany, and still not U.K. Together it costed over €4,000 in 6 months to file with Taxually and my issue is still not resolved. I wish I stayed in the US market where things were much more simple.
0 replies
Seller_7VbclcPFFRTnc
Sorry to hear this
Unfortunately I cannot help re registration - and presumably noone here can as its not an amazon issue
I’m unsure why you received hefty long term storage fees as these only usually apply 12 months
I’m also unsure where the caveat of being able to send stock without vat registration is in their policies .
Are you also aware they won’t ship goods back to US for you ?
It is very much a warning to other sellers though to do thorough research and ensure any relevant vat registration is in place before sending in any stock to warehouses - here or in the EU
Seller_qZO3ZCjoBXEeL
Are you sure that you haven’t confused that with quarterly filing deadlines? In the UK for instance you (typically) file VAT returns three months in arrears, however you are still very much required to have a valid VAT registration before your first trade. If the goods are in the UK, then you are required to be VAT registered and charge VAT on sales - which you cannot do until you have your VAT number.
Seller_fMsCVAHNu4txH
If you’re storing goods in the EU / UK, for sale in each area respectively (and you’re not a resident of that region) you must be VAT registered in that respective region from day one.
Any sale made from the 1st day of storage will incur VAT. You usually don’t pass the VAT to the relevant Tax Authority until the end of each quarter, but it doesn’t change the registration requirements.
See: gov.uk Website
Note: There are fees for late filing, so get in touch with HMRC as quickly as possible if you want them to be lenient.
