VAT For Amazon Sellers WARNING Pan-European Fulfilment TRAP!

by M. Christova 732 days and 23 hours ago
Now we will have to register for VAT in every single country that Amazon stores your stock in. And no it doesn't matter how much you're selling. This is different from local VAT registration, where you only have to register once you reach the sales threshold (this is currently 83,000 in the UK but its generally increased every year). In comparison, when you store and ship products from a sole Amazon fulfillment center, well use the UK for this example, then you only need to register for VAT in the European countries that you sell to once you reach their distance selling thresholds. Now, these differ from country to country but generally its 35,000 (roughly 30,000) with the exception of a few countries (Germany, Netherlands, Luxembourg) where its 100,000 (roughly 85,000).

Just so there's no confusion using Amazons Pan-European fulfillment service means registering for VAT in 6 different countries. You'll have to charge the correct VAT rates to the correct customers, keep records and file VAT tax returns for all of them as well.

This is a Pan-European Fulfillment TRAP!!!

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