Want to sell on the Amazon FBA platform?

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Amazon has a huge number of customers from all over the world. Therefore, it is no surprise that entrepreneurs are interested in listing and selling their products on this platform. In today’s post, we will highlight how sales on Amazon are accounted for, which will also help to understand the details of transactions in the context of changes in the e-commerce industry starting July 1, 2021.

Amazon FBA Platform – Table of Contents:
Amazon Warehouses
Selling on Amazon under the FBA model
How do I account for sales on Amazon under the FBA model?
Settlement of intra-EU transactions in the FBA model
Summary
Amazon Warehouses
Selling via Amazon is an interesting solution for companies that do not have their own warehouse and do not want to deal with product packaging, logistics and handling returns . Everything has its price, of course, brazil whatsapp number database tax settlements. Amazon has warehouses all over Europe: Germany, Poland, Czech Republic, Spain, France, Italy and the Netherlands. This location advantage makes it possible to ship products from warehouses located all over Europe . Depending on the cooperation model established with Amazon, VAT settlements may look slightly different. We will be interested in the Amazon FBA model .

Selling on Amazon under the FBA model
A merchant who decides to ship his products from different warehouses located in Europe will settle the transaction under the FBA (Fulfilled By Amazon) model . A seller who decides to cooperate in this way should be aware that Amazon freely moves products between different warehouses . This will have a decisive impact on the VAT to be paid in this case in different EU countries. However, in order to comply with tax obligations, you will be informed by Amazon about the transfers made between warehouses in a given accounting period.

Fulfilled By Amazon Infographic
How do I account for sales on Amazon under the FBA model?
Hypothetically, the products could end up in all of Amazon’s warehouses, which means in every country where it has them. What does this mean for the entrepreneur? Well, in this case, the entrepreneur would have to register for VAT in every country from which the products were shipped to the recipient . This is undoubtedly a rather onerous and expensive obligation. In such cases, we would have to use the services of a tax representative established separately in each country . Registration would have to be done for both VAT and EU VAT, which is necessary to settle intra-EU transactions.

Settlement of intra-EU transactions in the FBA model
When accounting for sales on Amazon under the FBA model, these transactions should be treated:

Intra-Community Delivery of Goods (ITA)
Intra-Community Acquisition of Goods (ICT)
The Intra-Community Supply of Goods can be documented with a VAT invoice, where the same entrepreneur is a party but with different EU VAT numbers . However, it should not be forgotten that in order to apply a 0% VAT rate it is necessary to meet all the requirements of the VAT Law. This means, among other things, having documents confirming the delivery of goods to the territory of another EU country.