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VAT and VAT-OSS in EU Guide
Are you selling your products across all European countries? It doesn’t feel much more satisfying to see customers order something you want. But you may face many challenges in your everyday business and accounting is particularly difficult. Amazon offers its own VAT services to fix the problem. This service facilitates VAT registration for retail customers by simplifying VAT registrations for retailers. But is it enough to sleep well and remove all the headaches with VAT registration and settlements? Read more and learn about all the differences between VAT services on Amazon and comprehensive support from Taxology.
What is VAT Services on Amazon?
Amazon, for the sake of its sellers, launched a range of services, which supports VAT registration and filing requirements, called VAT Services on Amazon. Those services unfortunately have some serious limitations. It enables customers to obtain VAT number registrations for each of their products and in a single click, you can also file your annual VAT declarations but only in some European countries. Amazon offers its VAT services in:
- Great Britain
- Czech Republic
It means that the service is not comprehensive. If you would like to get vat registration for example in the Netherlands or in Austria you’ll not be able to use Amazon VAT calculation services.
As Taxology, we offer VAT registration and advance VAT returns in all member states of the European Union.
VAT Services on Amazon – what is the cost?
Amazon offers ist VAT services in cooperation with several third party providers. You can choose one of the providers from the Amazon selection but you won’t be able to change it once the registration process has started.
VAT service fees depend on how many countries you would like to register in. VAT registration costs 50 EUR per country. VAT fillings monthly fee starts from 33 EUR per country. Fiscal representation costs 21 EUR/month for each country where you need fiscal representation.
You can set up everything in your seller central account and get vat registered in a few clicks but that doesn’t work with all of the providers. You should check all the details carefully before you will choose one of them.
VAT Services on Amazon and One-Stop Shop
Starting form July the 1st 2021 European Union have introduced new vat rules known as One-Stop Shop system. From that moment European sellers may register in their establishment country to One-Stop Shop system and report all the transactions in quarterly fillings. VAT services by Amazon unfortunately don’t support VAT-OSS registration and filling. You can identify your OSS transactions in Amazon VAT reports but you will have to fill them by yourself or with some other accountants.
Taxology offers a comprehensive VAT compliance service which means that we can help you not only with regular VAT registration but also registration to One-Stop Shop system. We will not only identify all the transactions which should be declared in VAT OSS but we will fill the declaration for you.
Amazon VAT Calculation Service vs. VAT Services on Amazon
Amazon VAT Calculation Services is not the same as VAT Services on Amazon but it could be confusing for any Amazon seller. Amazon VAT Calculation Services will calculate your product cost in your business account based on your registration. In the event the customer purchases from you, you’ve created an automatic VAT invoice. This helps your product attract people and helps them make better business decisions. This increases your chances of a sale. You will also be given a Business Selling badge. Business buyers can see your listing on Amazon’s Choice and Prime badges alongside your products. This tells anyone shopping for their business that they can do it.
VAT Registration Numbers
Amazon’s VAT Calculation service uses all applicable UK or EU VAT Registration Numbers (EU 27 and only UK). VAT Calculation Services will exclude any local VAT number from VAT calculation or invoice. VAT registrations are available via VAT calculations, services enrollment and are then managed through the section Tax Information in SellerCentral, under Account information. Amazon performs regular validation of VAT registration numbers provided by both seller and customer.
Brand awareness on Amazon
Sellers who are using Amazon VAT calculation services can use only one template of the invoice, so you won’t be able to use a custom invoice with your own logo. If you are also using FBA to pack and send your products it would be difficult to build your brand awareness. For your customers on Amazon, it would look like they’ve bought the product directly from Amazon.
Do you know this feeling when you are waiting for a response from the support team? Days go by and your inbox is still empty? No wonder there is frustration in this situation. If you are using VAT services on Amazon you can manage all your VAT treatment in your seller central account but if you need tax advice, professional advice or any information about your VAT registration it could be immensely thorny to get a quick response.
However, you can do something about it – decide to cooperate with Taxology and you will find out what professional customer support is.
VAT Compliance for e-commerce from Taxology
What distinguishes the VAT Compliance service offered by Taxology? Its undeniable advantage is its comprehensiveness. We offer holistic support for entrepreneurs selling goods throughout the European Union. See for yourself that our VAT Compliance service is exactly what your company needs!
We settle VAT throughout the European Union
Unlike VAT Services on Amazon, we are not limited to specific countries. It doesn’t matter if your goods go to France, Germany or Austria. With us, you can easily settle VAT in any EU country. See for yourself that with us VAT Compliance is not as complicated as it is painted.
We know the VAT rules of all EU countries inside out! We know also UK VAT legislation which is important after Brexit. Entrust Taxology with VAT settlement abroad and you will be able to rest easy. Our experts constantly monitor tax regulations in all European Union countries. They can easily cope with issues such as the procedure of reverse charging B2B supplies in France or regular verification of customer tax identification numbers in the case of tax-free B2B supplies within the EU community.
Do you need advice? We are at your disposal!
When choosing a service provider offering support in the field of VAT settlement, you probably follow various criteria, including the price of the service and its scope. You also want to be able to quickly ask a consultant about the issues bothering you in case of doubt. In such a situation, after all, time matters, and as you know – in business, time is money.
As part of the VAT Compliance package, you will receive email support. Our team will respond to your request within 48 hours. Do you want to receive answers immediately? Choose the VAT Compliance + package! The reply message will be sent to your inbox within 6 hours of reporting.
Intuitive application – your command centre
The automation of the VAT settlement process in all countries belonging to the European Union has just become a fact. You don’t need to manually enter your sales data via Amazon. The whole process takes place very quickly thanks to the integration of our tool with the sales platform.
You can have all information regarding tax settlements always at hand. In the Taxology app, you will find archived copies of submitted VAT returns. You will also get access to detailed reports on sales transactions.
Want to learn more about Taxology’s VAT Compliance service? Make an appointment for a free consultation!
VAT services on Amazon is a relatively inexpensive way of outsourcing tax matters. Unfortunately, most features cannot be provided so it is hard for one to feel safe. The VAT services on Amazon can help you supplement Amazon’s services with your own efforts. Alternatively, you could choose a complete and comprehensive VAT software to help you free yourself holistically from the subject. Upon request, an agent can be reached by telephone or online.
Initially, Amazon’s offers give the impression that you’ll receive complete assistance with your tax matters as your Amazon seller. Nevertheless, it is unlikely it is possible to overlook the tax issues which have been under strict control from tax authorities and, in some instances, penalized. First and foremost there are limitations: Not all countries can be found.
Do you sell goods to various European Union countries, including Austria or the Netherlands? Do you want to be sure that VAT will be correctly settled also in these countries? Opt for the VAT Compliance service from Taxology.