This document discusses VAT (Value Added Tax) compliance for online sellers. It explains the basics of VAT, how it applies to cross-border sales within the EU and exports outside the EU. It addresses issues sellers may face, like determining the correct VAT office and rate for different sales. The document then introduces a cross-border VAT software that can help sellers manage VAT compliance by consolidating sales data from multiple sales channels, monitoring distance selling thresholds in EU countries, and generating VAT summaries.

1. WWW.WCAECOMMERCE.COM
Selling Online with VAT
Compliance
London 2018
Name, Title & Company
Gurpreet Sidhu
Cross Border VAT

2. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
VAT – Value Added Tax
▪ Output VAT
▪ VAT charged on sales
▪ Collected from consumers and PAID to the government
▪ Input VAT
▪ VAT paid on purchases
▪ Paid to the supplier and CLAIMED back from the
government
VAT Basics

3. VAT on International Cross Border Sales
▪ Sales between EU-28 Countries
▪ B2B – Reverse Charge applied by the Buyer on local VAT Return
▪ B2C – Seller charges VAT and pays applicable government VAT authority
▪ Standard VAT Rate?
▪ Currency?
▪ Export Sales – buyers outside of EU-28
▪ Zero Rated to all consumers
VAT Basics

4. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
Selling Online
B2B Sales – VAT Neutral B2C Sales – Tax Office VAT Gain
Which VAT Office?
What amount/currency?
When do I file/pay?

5. ▪ Business Seller (B2C)
▪ When do I register for VAT?
▪ Have I registered in the correct EU countries?
▪ How much VAT do I pay?
▪ Which Tax Office do I pay?
▪ How often do I pay?
▪ Any special requirements per EU countries?
VAT Compliance Issues
Your Shop

6. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
▪ Calculated from 1st Jan to 31st Dec
▪ Reset at the end of the year
▪ NET Amounts count towards the
threshold
▪ Most EUR 35,000
▪ Goods stored in a country effectively
reduce threshold to ZERO
▪ Sellers must monitor sales to each
EU-28 country at micro transactional
level
EU Distance Selling Thresholds

7. Typical Seller Money Flow
Amazon UK
eBay US
eBay UK
Amazon IT
Amazon FR
Amazon ES
Amazon DE
Amazon CA
Amazon US
eBay AU
Website
eBay DE
Your Shop

8. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
▪ Collation of Sales & Refund Data per Channel
▪ Your Shop Case = 12 channels
▪ Make request, wait, download sometimes various files per channel
▪ Check ALL Sales/Refund Data
▪ Present
▪ Duplication?
▪ Normalisation of Data
▪ Per Channel
▪ Merge files, by mapping missing data
▪ Country Missing, FBA Movement etc
▪ Date Format, Decimals/Commas
▪ Applying UK HMRC exchange rates for each sales currency
▪ GBP 1 = USD 1.5003 1st Jan 2016 to 26th Jan 2016
▪ GBP 1 = USD 1.4144 27th Jan 2016 to 31st Jan 2016
▪ Extract
▪ Expert use of excel, VLOOKUP's and Pivot Tables
Calculation of VAT – Manual Process

9. There has to be an easier way?
Calculation of Output VAT

10. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
All your Transactions in One Place
Cross Border
VAT Software

11. CBV Software - Dashboard

12. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
CBV Software - Dashboard

13. EU Distance Selling Threshold Monitor

14. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
EU Distance Selling Threshold Monitor

15. VAT Summary

16. WWW.WCAECOMMERCE.COM
#WCAECOMMERCE
Output VAT – Ready for the
Accountant
Date
01/01/2016
01/01/2016
01/01/2016
01/01/2016
04/01/2016
01/01/2016
02/01/2016
12/01/2016
02/01/2016
01/01/2016
02/01/2016
01/01/2016
04/01/2016
01/03/2016
01/03/2016
Sales
Currency
GBP
GBP
GBP
AUD
CAD
GBP
USD
GBP
EUR
GBP
EUR
AUD
CAD
EUR
EUR
Sale
Amount
22.48
11.48
15.98
32.48
25.99
15.48
41.96
-18.99
18.99
22.98
13.49
24.98
8
-2.43
-4.57
Product Name
New Womens Plus Size Ladies Cami Pyjama Flower Floral
SatinTrim PJ Set Nouvelle [Size
26
-28,Grey]
New Womens Dress Plus Size Ladies Bodycon Midi Floral
MidStretch Nouvelle 14-28 [Size 20,Mocha]
Womens Kimono Ladies Cardigan Lace Scallop Edge Floral
OpenPlus Size Nouvelle [Size
16,Black]
Womens Poppy Print Asymmetric Hem Sleeveless Tunic Top
Nouvelle Plus Size Ladies [AU
26
-28,Blue]
Skull Gem Dip Hem Black 18
New Womens Floral Lace Cardigan Long Sleeve Waterfall Frill
Nouvelle Plus Size [Size
14,Black]
New Ladies Plus Size Off Shoulder Batwing Baggy Long
SleeveSlouch Dress Top [US 28-30,Turquoise]
Nouvelle Exclusive Duffle Jacket Purple
22
-24
Skull Gem Dip Hem Black 24-26
New Ladies Dress Midi Party Womens Plus Size Sequin
BodyconGlitter Nouvelle [Size 26-28,Silver]
Plain Elastic Jeggings Denim
20
Womens New Cami Tank Top Thin Strap Long Tunic
SummerNouvelle Plus Size Ladies [AU
28
-30,Cerise]
Skull Gem Dip Hem Black 18
Dayna Damen Unisex Fleece ausgekleidet Plain Farbige
Kapuzenmit Cuff Rei? verschluss vorne Damen Jumpsuit Overall
Onesie
Dayna Damen Unisex Fleece ausgekleidet Plain Farbige
Kapuzenmit Cuff Rei? verschluss vorne Damen Jumpsuit Overall
Onesie
SKU
330914505819
330927571599
231497990863
231489474591
1107-Black-18-CA
230958288534
231462735189
3117-Purple-22-24
1107-Black-24-26_DE
231086381048
7013-Denim-20_DE
231534837170
1107-Black-18-CA
ADE8001-Red-M
ADE8001-Red-M
From
Country
GB
GB
GB
GB
GB
GB
GB
GB
DE
GB
DE
GB
GB
GB
GB
Ship
Country
GB
GB
GB
AU
CA
GB
US
GB
DE
SG
DE
AU
CA
DE
DE
EU
Sale
1
1
1
0
0
1
0
1
1
0
1
0
0
1
1
VAT Office
GB
GB
GB
GB
GB
GB
GB
GB
DE
GB
DE
GB
GB
GB
GB
Vat Rate
20
20
20
0
0
20
0
20
19
0
19
0
0
20
20
Currency
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
EUR
GBP
EUR
GBP
GBP
GBP
GBP
Gross
22.48
11.48
15.98
32.48
25.99
15.48
41.96
-18.99
18.99
22.98
13.49
24.98
8
-2.43
-4.57
Net
17.984
9.184
12.784
32.48
25.99
12.384
41.96
-15.192
15.3819
22.98
10.9269
24.98
8
-1.944
-3.656
VAT
4.496
2.296
3.196
0
0
3.096
0
-3.798
3.6081
0
2.5631
0
0
-0.486
-0.914

17. Thank you
WWW.WCAECOMMERCE.COM #WCAECOMMERCE
▪ Gurpreet Sidhu
▪ gss@crossbordervat.com
▪ 00 44 7973 232468
▪ www.crossbordervat.com