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Million Dollar Case Study: Europe – Session #6, VAT in Europe


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Find out how VAT works in the UK / Europe and how to set up your business whether you are an overseas or European seller wanting to sell on Amazon in EU marketplaces!

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Million Dollar Case Study: Europe – Session #6, VAT in Europe

  1. 1. SESSION 3: Supplier Outreach & Product Selection T H E M I L L I O N D O L L A R C A S E S T U D Y E U R O P E
  2. 2. MDCS: Europe Progress Map Session #1: Generated a list of product ideas for the UK Session #3: Supplier outreach, profit calculations & selecting our product Session #2: Advanced research & narrowed down that list to the top 5 Session #4: How to pick the right manufacturer in China Session #5: Nailed down a product design specification TODAY: Samples are ordered. Let’s figure out VAT & legal!
  3. 3. Introducing Christoph Prokes ◍ Amazon VAT and PAN EU Expert ◍ Co-founder at – VAT Automation Software These slides cannot be considered in any way as tax, legal, accounting or any other advice.
  4. 4. In Today’s Session... ◍ What is VAT and how does it work ◍ When to apply for a VAT number ◍ Amazon Storage Options ◍ How Registration and Filings work ◍ Import VAT ◍ FAQs
  5. 5. VAT = Value Added Tax (a tax paid by the consumer collected by the seller)
  6. 6. How To Calculate VAT ◍ Production+shipping: 5€ ◍ Amazon fees: 5€ ◍ Margin: 10€ = Sales price (net): 20€ ◍ UK VAT : 20% = Total sales price at Amazon: 20€ x 1,2 = 24€ = 4€ to Government VAT paid to suppliers/customs is deductible
  7. 7. How To Calculate VAT “Seller Central” price = Sales Price VAT inclusive
  8. 8. You need a VAT number when: A) Store in a country First day of Storage B) Pass the Distance Selling Threshold Limit First Sale after When Do You Need To Register?
  9. 9. How To Get A VAT Number How to get a VAT Number as an Amazon seller: A) Found a company B) Use a Fiscal Agent/Representative
  10. 10. Amazon Storage Options
  11. 11. VAT Registration & Filing VAT Registration: ◍ Takes about 2 months ◍ Business documents, Passport copy, forms ◍ Start from validity date VAT Returns (+ other reports) ◍ UK: Quarterly, DE: Monthly ◍ Payment by Bank Transfer ◍ Strict due dates (Penalty)
  12. 12. VAT Registration and Returns Do-it-yourself vs. Amazon Service vs. External Partner
  13. 13. DE VAT Return Sample
  14. 14. Where to get the data from Amazon
  15. 15. Importing Goods From Outside of Europe EORI Number: Importers ID Number to link goods to your company Import VAT Reclaimable with next VAT Return Duties Not reclaimable
  16. 16. FAQ’s
  17. 17. FAQ’s – VAT For Amazon Sellers ● Do I need a local Bank account? ● What if I did not sell any products (+ paid import VAT)? ● What if a customer asks for an invoice? ● Is my product eligible for a reduced VAT rate? ● What is the risk of not being VAT registered?
  18. 18. Follow Along: Your Homework 1. Use Christoph’s advice to figure out how to set up your business 2. Get VAT registered! 3. Sign up for a Seller Central account in Europe Get the tips shared & some useful resources at:
  19. 19. Join Us Next Week Join us next Wednesday Amazon product branding tips and processes! Register for FREE at