Trading with FBA
Hello all,
sorry for the basic questions…but I’m just starting and hopefully ill be trading in 2 months
- where do i setup FBA, eg which location to ship inventory to?
- where do i see the cost per item (storage, packaging, shipping etc)
- can I, with an LTD in UK, source storage say in France and sell it/delivery it to say Spain? would Amazon calculate tax implications and tell me how much vat i need to pay in UK? (even if potentially goods never actually enter UK)
- do i have to be VAT registered in UK?
many thanks
Tom
Trading with FBA
Hello all,
sorry for the basic questions…but I’m just starting and hopefully ill be trading in 2 months
- where do i setup FBA, eg which location to ship inventory to?
- where do i see the cost per item (storage, packaging, shipping etc)
- can I, with an LTD in UK, source storage say in France and sell it/delivery it to say Spain? would Amazon calculate tax implications and tell me how much vat i need to pay in UK? (even if potentially goods never actually enter UK)
- do i have to be VAT registered in UK?
many thanks
Tom
9 replies
Seller_6sxtIS0RbZ5k7
- You will be allocated a fulfillment centre when you create the shipment.
- Once you have converted an item to FBA the FBA costs will be displayed in your inventory, remember to add VAT. The shipping cost is dependent on size and weight and will also be displayed when the shipment is created. I don’t know much about storage costs as my stuff is all S&L.
- Sorry, can’t help here!
- It becomes compulsory when your turnover (not profits) reaches £80,000. You might need to check out if you need to be VAT registered in other countries if you are selling there.
Seller_amUAzjvL5uIzu
3.If you store stock in any EU country other than UK you need to VAT register in each country there are no thresholds.
Seller_z6B2L9xab6HlP
- FBA fulfilment fees are picking, postage and packing all combined. Storage fees are additional.
- If you’re looking at selling in Europe it would be worth investigating Pan EU FBA. It will mean registering for VAT in Germany, France, Italy, Spain and the UK as a minimum, and possibly also Czechia and Poland too. Amazon have a VAT calculation service but some sellers haven’t found it to be wonderful. You would be responsible for all VAT returns and to check the figures from Amazon are correct. There are external companies that can help with this for around £600 +VAT per country per year.
- You don’t have to be VAT registered in the UK until your turnover hits £85k in a rolling 12 month period, but if you’re required to register for VAT in another country (e.g. by storing products there, or going over their distance selling threshold) then it’s usually best to register for VAT in the UK too.
Seller_r7SzViEUCuDPM
I’m guessing that the way your questions are phrased that you are not a UK resident. In that case, you will need to be registered for VAT if you use an Amazon UK based account.
Creating a UK Limited Company will not hide the fact you are possibly a NETP.
Seller_qriNQKotRGzJ5
Thanks alot @Tool_Shack1 Whats netp please? I’m UK resident. I have Ltd, not yet vat.
Thanks alot @BarryM to be vat registered in other countries does it mean I need to create the equivalent of Ltd in other countries?
Though I can avoid it just storing in UK only and using pan EU. However missing the advantage of storing closed to customers. Am I correct?
Thanks