Learn how to repatriate marketplace earnings at cost-effective rates and remain VAT compliant in the process.

1. VAT & Clever Currency
Management - Webinar
for International Sellers
(Feb. 28 2017)

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3. 3/2/2017
Topics to be discussed
 Welcome & introductions
 Understanding when you need to register for VAT
 Marketplace requirements & VAT IDs
 Filing your tax returns & remitting international tax
 What are your options when repatriating profits
 World First’s marketplace solution
 Paying your international tax in local currency with World First
 How you can mitigate currency risk return when repatriating
profits.

4. 2013 Meridian Global Services
Chris O’Shea
Channel Manager
Meridian Global Services
Phone: + 49 1520 9204 308
Email: worldfirst@meridianglobalservices.com
Blog: www.meridianglobalservics.com/blog
Web: www.meridianglobalservices.com
Twitter: @MeridianVAT
Brian Malesa
eCommerce Sales
World First USA
Phone: 737.226.5204
Email: Brian.Malesa@worldfirst.com
Blog: https://www.worldfirst.com/us/blog
Web: www.worldfirst.com
Twitter: @WorldFirstUS
Meet the panelists

5. 5
Introducing Meridian
Corporate Profile
• Global leader in international
VAT solutions including VAT
recovery, compliance,
consulting, audit and VAT
reclaim
• 21+ years experience
• Over 10,000 clients worldwide
• Serving clients globally
through 32 offices
• Global centre of excellence
based in Dublin
• 550 FTE –
(with 300 FTE in
Dublin SSC)
• ISO Quality Approved

6. 6
Introducing World First
Corporate Profile
• Global leader in international
payment and currency risk
management solutions.
• 10+ years experience in the e-
commerce space
• Over 100,000 clients worldwide
• Serving clients globally through 7
global offices
• Global headquarters located
London the center of FX world
• Globally licensed and bonded
• SSAE 16 audited.

7. 3/2/2017
What is VAT?
 “VAT” stands for “Value Added Tax”
 Various rates - standard rate, reduced rate, zero rate, VAT exempt
 VAT is paid to the government directly by the producer, and the
cost is passed on to the consumer
 VAT avoids the cascade effect of sales tax by taxing only the
value-added at each stage of production

8. 3/2/2017
VAT Registration / VAT Compliance
 VAT is becoming a more significant source of revenue for jurisdictions there is a greater
focus on enforcing compliance and combating fraud
 Tax authorities are being more aggressive in how they treat VAT errors/shortfalls
 Where companies have a VAT obligation, they need to:
 Set up a VAT registration (no permanent establishment or corporate tax issues); and
 Produce & submit regular VAT returns, EC Sales Lists, Intrastat reports
 accurately
 on time
 compliant with the prevailing national legislation
 Pay (and recover) the required tax

9. 3/2/2017
Importation…
Import subject to import VAT rules
(VAT and duties)
 Are you importer of record?
 If yes, then register for VAT in the UK so you can recover your import VAT

10. 3/2/2017
How does VAT affect US sellers when selling in the EU?
 Sales to customers in the country of importation (ship from country)
 Sales to customers in other EU countries as a result of distance selling
 Sales in EU countries of the customers while storing / warehousing goods
in those countries
 Concept of movement of own goods within the EU

11. 3/2/2017
US seller imports and performs domestic sales Amazon FBA
Customer
(private individual)
in the UK
US seller
US seller
(UK warehouse
FBA Amazon)
UK warehouse UK
US seller
(warehouse in the
USA, i.e. outside
of the EU)

12. 3/2/2017
US seller imports and sells to customers in other EU Member States/ distance sales
FBA Amazon
Customers
(private
individuals)
in France
US seller
US seller
(UK warehouse
FBA Amazon)
20% UK import VAT
paid by seller
20% UK VAT
(sales below
threshold)
UK VAT number
UK warehouse France
US seller
(warehouse in the
USA, i.e. outside
of the EU)
€ 100,000
20% French VAT
(sales above threshold)
FR VAT number
US seller has
a VAT
registration in
France

13. 3/2/2017
US seller imports and sells to customers
in other EU Member States/ distance sales FBA Amazon
Customers
(private
individuals)
in France
US seller
US seller
(UK warehouse
FBA Amazon)
20% UK import VAT
paid by seller
20% UK VAT
(sales below
threshold)
UK VAT number
UK warehouse France
US seller
(warehouse in the
USA, i.e. outside
of the EU)
€ 100,000
20% French VAT
(sales above threshold)
FR VAT number
US seller has
a VAT
registration in
France

14. 3/2/2017
Movement of own goods, US seller preforms
domestic sales FBA Amazon (MCI in other EU countries)
Customers
(private
individuals)
in France
US seller
US seller
(UK warehouse
FBA Amazon)
20% UK import VAT
paid by seller
UK warehouse France
US seller
(warehouse in the
USA, i.e. outside
of the EU)
20% French VAT
(sales above
threshold)
FR VAT number
US seller
(French
warehouse
FBA Amazon)
French warehouse
US seller has VAT
registration liability in both
the UK and France

15. 3/2/2017
What is distance selling and a distance selling threshold?
 Supplies of goods from one EU Member State to private individuals
residing in another EU Member State transported by the supplier directly
to the customer
 Special rules governing such supplies known as distance selling rules
 Where the total net value of goods supplied to customers in each EU
Member State in a calendar year does not exceed the distance selling
threshold for that jurisdiction (€ 35,000 or € 100,000.
 Option to VAT register in the customer´s country prior to reaching
distance selling threshold

16. 3/2/2017
Not being compliant? Penalties...
 Repay all of the tax owed – up to 10 Years
 Pay interest and fines of up to 200%
 Company directors can be personally liable
 Imports seized by customs authorities

17. 3/2/2017
Repatriating your money -
your options

18. 3/2/2017
Benefits of repatriating monies with World First

19. 3/2/2017
Quick guide to linking your World First account

20. 3/2/2017
Quick guide to linking your World First account

21. 3/2/2017
Paying your international tax in local currency
 Pay directly out of your World First Accounts
 Avoid double conversion fees
 Better overall control of your money

22. 3/2/2017
Currency Products
Forward contracts
A forward contract will allow you to fix a rate for up to 3 years
Rate alerts
Get an email notification when your target rate is reached
Firm orders
Automatically trigger a payment if a certain rate is achieved
Market watch
Let us be your eyes and ears on the currency markets

23. 3/2/2017
Forward Contracts
A forward contract can be used by a seller to control their profit margin and pricing for a
chosen period of time.
For example: your disbursements are £50K per month, and your profit margin is 5% with GBPUSD
rate at 1.24. If you’re relying on the spot rate you are open to market fluctuations and therefore your
profit margin can change. If you had booked in a forward contract at 1.24 to protect your profit
margins, you would retain the 5% margin.
Pros
• Allows you to forecast your disbursements
• Budgeting your pricing to protect profit
margins
• Allows you to focus on other areas of your
business
Cons
• You do not benefit if rates moves against
your forward rate.

24. 2013 Meridian Global Services
Chris O’Shea
Channel Manager
Meridian Global Services
Phone: + 49 1520 9204 308
Email: worldfirst@meridianglobalservices.com
Blog: www.meridianglobalservics.com/blog
Web: www.meridianglobalservices.com
Twitter: @MeridianVAT
Brian Malesa
eCommerce Sales
World First USA
Phone: 737.226.5204
Email: Brian.Malesa@worldfirst.com
Blog: https://www.worldfirst.com/us/blog
Web: www.worldfirst.com
Twitter: @WorldFirstUS
Questions?

25. 3/2/2017
Disclaimer
These comments are the views and opinions of the author and should not be construed as advice. You should act using
your own information and judgment.
Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do
not guarantee its accuracy and it may be incomplete or condensed.
All opinions and estimates constitute the author’s own judgment as of the date of the briefing and are subject to change
without notice.
Any rates given are ‘interbank’ i.e. for amounts of $5million or more thus are not indicative of the rates offered by World
First.
World First USA, Inc. is a Delaware corporation, registered as a Money Services Business in the United States with
FinCEN (Registration number 31000099952286), and holds licensing as a non-depository financial institution with the
Nationwide Multistate Licensing System (NMLS#1018479). World First USA, Inc. is also registered in Canada with
FINTRAC (registration number M11393445).