Amazon accounting vs VAT compliance services

  • Last update: 23.02.2024
  • Published: 23.11.2021
  • Read in: 7 min

Do you sell internationally via Amazon or eBay? Are you sick and tired of the constant changes in the tax regulations? Do you want to make sure you are settling your VAT correctly? Check out the differences between Accounting Services and VAT Compliance and find out which one you need to grow your business when selling via Amazon.

Amazon accounting vs VAT Compliance services

Not all accounting have the same standards. What to look for when selecting accounting for e-commerce?

Every company, regardless of its business nature, requires the support of an experienced accountant. Outsourcing accounting services more often than not is a cheaper solution than creating a new in-house department. By handing over your bookkeeping to specialists, you are guaranteed to receive the highest quality service.

If you are solely operating in Poland, you will have no problem finding a person to handle your tax returns. Accounting offices provide services to both private individuals and commercial entities. Their scope of activities includes:

  • assistance with business start-ups;
  • revenue and expense ledgers, general ledgers;
  • HR and payroll services;
  • preparation of tax returns and declarations;
  • doradztwo podatkowe w zakresie optymalizacji podatkowej;
  • representing clients before tax and social authorities (e.g. ZUS).

If your business is focused on cross-border sales (e.g. via the Amazon platform), choose an accounting firm that specialises in accounting for Amazon sellers. So why is this so important?

Different countries have different tax laws. Among other things, they vary in: mandatory reporting, VAT rates and VAT settlement deadlines. The chosen method to submit your tax return also matters. Not every accountant specialises in cross-boarder VAT settlement. Are you looking for a specialised company that is well acquainted with the different tax laws in various countries to handle the VAT procedure?

VAT Compliance service for those selling via Amazon

Failure to submit timely tax returns, as well as misinterpretation of the law, can result in penalties from supervisory authorities. A specialist in VAT Compliance in the European Union is someone with knowledge concerning international sales platforms and the VAT settlement rules in different countries. Amazon may turn out to be a window into the world for your business. Please make sure that your tax returns are done correctly, in particular those related to VAT.

Selling goods via Amazon - Accounting and VAT Compliance

Selling on Amazon can be done in a variety of ways. You can choose to dispatch and deliver goods to customers, directly from your own warehouse. You then register as a VAT payer in the country from which you are shipping.

However, the matter of tax settlements becomes more complicated when you use Amazon FBA (Fulfillment by Amazon). On the one hand, this model is simply more convenient, with all the logistics associated with warehousing and shipping the goods being handled through Amazon’s platform. But on the other hand, it is your responsibility to register for VAT, in each country, where the sold merchandise is stored.

Amazon’s accounting handles all the aspects that arise from running a mail order business, regardless of the model you decide on. handles all the aspects that arise from running a mail order business, regardless of the model you decide on. It must be run in the country of the company’s registered office. If you opt for Amazon FBA, you will need comprehensive support in handling VAT settlements in different countries. This is where the VAT Compliance service aimed at those selling goods abroad offers indispensable assistance.

Such a service is your go-to for:

  • reducing tax service costs – outsourcing is more cost-effective than creating new, full-time specialists in-house;
  • time-saving – you do not need to keep track of all regulatory changes regarding VAT settlements in different countries;
  • Higher security for your company – you will receive the support of specialists who will oversee the entire VAT process.

So why is it the selection of a service. tailored to the specific needs of your business, crucial?

When you choose to cooperate with an accounting office that does not specialise in handling e-commerce, you are risking the financial security of your business. Of course, such a service is more than adequate as long as you do not sell abroad. Otherwise, you need a specialised service geared towards VAT settlement in particular countries.

The VAT Compliance service includes:

  • VAT/VAT-EU registration;
  • keeping VAT records;
  • preparing and submitting tax returns;
  • expert assistance during audits carried out by tax authorities;
  • handling VAT returns.

Staying up-to-date on legal and tax developments

In the e-commerce industry, legal and tax regulations change quite frequently, especially in the international environment. If you want to protect your business then you should be up-to-date with all the applicable regulations not only in Poland, but also in other EU countries. Of course, keeping track of all these changes on your own is quite tricky, so you are better off cooperating with companies, which specialise in such matters.

In the event of changes that may affect your business, an expert responds quickly and prepares the most optimal solutions for you.

Accounting while selling on Amazon - settling VAT in a country where the company is not registered

If the nature of your business requires you to settle VAT in a country that is not your registered office, then take advantage of the VAT Compliance service. Having the support of experts helps us avoid sanctions resulting from VAT irregularities.

Handling the accounting of your e-commerce, by yourself, is very risky. Constant changes in the tax laws are very confusing and lead to mistakes. Remember that the tax authority will not delve into whether the mistake is a result of your oversight or misinterpretation of the regulations.

Are you selling goods to EU countries via the Amazon platform? Opt for comprehensive VAT accounting and rest assured you will never have to worry about the accuracy of your VAT returns. You will not have to worry about either preparing VAT registers or filing tax returns.

Find out that settling Amazon VAT can be simple – even when you are registered for VAT in a country outside your company’s headquarters. Choose a service tailored to the needs of your business and boost your security. Place your VAT settlements in the hands of experienced accountants who are updated on the current tax regulations in various countries.

VAT settlement on Amazon - Taxology's offer

Our services are much more than just VAT registration in EU countries and subsequent filing of returns. With our application, take advantage of our automated download of sales data from Amazon, thanks to which VAT settlement is easy as pie. Special algorithms and validations also catch any irregularities and inaccuracies, and by having the possibility to correct and edit this data, we can be confident that the final prepared VAT statements are correct.

Would you like to take advantage of our services, contact us>>>

Adam Grabiński Marketing Manager especially fascinated by digital marketing. Taxology member since April 2020 till January 2023.