Retailers Selling into the EU

Transcription

1 Presented by Alex Wyatt from SimplyVAT VAT RULES FOR Retailers Selling into

2 Roadmap About SimplyVAT Why Sell in Europe? What is VAT? Amazon s European Invasion Your EU VAT Tax Obligations Understanding VAT Tax How it impacts your business Brexit

3 About SimplyVAT.com 19 years experience in international VAT Launched SimplyVAT.com to help online retailers with the EU VAT rules Ethos: we re here to help Launched in 2013 Clients in over 20 countries SimplyVAT software platform launch Summer 2017

4 In life

5 International VAT Obligations

6 What is VAT? (Value Added Tax) Applied every time value is added: + VAT + VAT + VAT + VAT Standard VAT rates range from 17% 27% across the EU Favoured by over 140 countries world-wide including China Governments get revenue every transaction Not supposed to be a burden to a business

7 Selling in the EU what do you need to know? Single Set of Rules 28 sets of interpretation includes VAT legislation

8 s European Invasion United Kingdom 31 fulfilment centres distributed across 7 countries Access to a 500 billion market and growing France Germany 12% year-on-year 296 million online shoppers in Europe Italy currently Average spend of 1,540 each online last year Spain 5 Marketplaces

9 s European Invasion Merchant Fulfilled network (MFN) Goods fulfilled from the seller s own warehouse European Fulfilment Network (EFN) Goods stored in a single EU member state (country) with all deliveries being made from that one warehouse Multi Country Inventory (MCI) Choose where to store goods in multiple warehouses around the EU Central European FBA German marketplace + stock stored in Poland and Czech Republic Pan-European FBA Ship to a fulfilment centre. Amazon manage distribution across the EU FBA centres

10 s European Invasion Pan-EU Fulfilment United Kingdom Uses warehouses in 7 countries 5 market places + Czech Republic and Poland France Germany Products moved around to get closer to final buyer Italy Spain Aim to get your products to your buyers more quickly

11 s European Invasion Do you know what your EU VAT obligations are??

12 Selling in the EU Import taxes & duties Who is The Importer of Record? THE THE CUSTOMER OR SELLER

13 EORI Number For Import into EU EORI Number on Import Documents Reclaim Import VAT on VAT Return Import VAT Charged = % Cost Value + Freight + Duties + Insurance

14 Selling in the EU using fulfilment centres Stock in an EU country creates a taxable supply Amazon s Pan EU 7 VAT registrations Germany, France, Italy, Spain, UK, Czech Republic, and Poland A VAT registration will be required immediately in the EU country where you are holding stock in fulfilment centres there is no threshold to exceed

15 Signing Up for Amazon Pan-EU 7 VAT Registrations + 64 VAT Returns per year Other reporting + eg. EC Sales Lists, Intrastat Declarations

16 Signing up for Pan-EU You might already be signed up!

17 Slow and Steady Wins the Race?

18 Fiscal Representation for Non-EU Companies Non-EU Companies Require Fiscal Representation Jointly and severely liable for VAT owed Bank guarantees or increased fees or both How To Avoid Fiscal Representation Establish a company in a EU country eg. UK EU to EU rules apply

19 Selling Goods to EU B2C UK Fulfilment Centre Applies to anyone registered business or not Also applies when selling through the online market places e.g. ebay or Amazon Different rules apply when selling to private customers in non-eu countries (Export of Goods) EU Private Customer Ebay and Amazon are not responsible for collecting or paying VAT on your behalf

20 The EU Distance Selling Rules Charge local VAT until the VAT registration threshold is exceeded in any other EU country where your goods are sold per calendar year THRESHOLDS Country Threshold Equivalent to approx. Most EU countries 35,000 $36,000 Germany, Netherlands, Luxembourg 100,000 $105,000 UK 70,000 $85,000 Failure to register could result in significant penalties and interest on late payments

21 Selling Goods in Europe It doesn t take that much to exceed thresholds Sold 70 of these and not yet in the picture? 300 pairs of these could march you over the threshold Just 175 of these could bring your business to a halt 35 of these could see your business carry a big fine

22 Ignorance is No Defence 193 billion lost revenue in EU in billion lost revenue by UK each year Specialist sections within EU tax authorities are actively pursuing e-tailers and approaching Amazon and ebay for seller sales data

23 Nowhere to Hide the new rules New powers to HMRC include: 1. Making Amazon Responsible if Seller is not compliant 3. HMRC can make you appoint a VAT representative who will be jointly liable - x % 2. Amazon can shut your Amazon Store down in 30 days +

24 VAT Rates & Your Margins?

25 VAT Rates & Your Margins VAT is Calculated on the Product Sale Amount

26 VAT Rates & Your Margins how to make VAT work for you! Zero Rated Items only in UK and Ireland

27 Brexit UK will no longer access single market Goods from UK to EU will have to be imported Goods into UK from China imported (as now) UK should retain VAT system UK VAT registration required when stock held in UK FBA

28 Brexit What s the impact? BEFORE 1 UK VAT registration to access EU 1 UK company to avoid fiscal representation AFTER 1 VAT registration to access UK 1 VAT registration to access EU 1 EU company to avoid fiscal representation Increased cost of compliance

29 Brexit What s the impact?

30 Don t let VAT be a barrier to global domination!

31 We can help

32 . You Sleep At Night

33 Where To Find Us SimplyVAT.com

34 Presented by Alex Wyatt from SimplyVAT VAT RULES FOR Retailers Selling into