VAT is a complex topic and many sellers struggle to get it right. This slide deck will show you how Cross Border VAT tool can help you create a report on what's needed for accounting.
1. Cross Border VAT made
easy
Gurpreet Sidhu
gss@crossbordervat.co
m
2. Directors Curriculum Vitae
• Married with 3 children
• Education
• Sneyd Comprehensive School
• 10 A* - B GCSE’s
• 3 A Grade A-Levels in
Mathematics, Physics and
Chemistry
• Guy’s King’s & St Thomas’ Medical
School, KCL
• Pre-Clinical MBBS
• Department of Mathematics, University
of Birmingham
• BSc
• Interests
• Property Development, Networking,
Communication Technology &
Badminton
• Employment
• 2017 to Date: www.nouvelleuk.com
• Director of Surjit Investments LTD
• 2015 to Date:
www.crossbordervat.com
• Director of Cross Border VAT
Limited
• 2011 to Date: www.lovefashion.co.uk
• Director of Surjit Investments LTD
• 2006 to Date: www.easyfood.co.uk
• Director of Easy Food LTD
3. Contents
Personal History – Love Fashion
Distance Selling from the UK
EU VAT Conundrum
CBV – Cross Border VAT
1
2
3
4
4. Personal Case Study
• Established Love Fashion brand 2011
• Selling online since Oct 2011
• Started selling overseas 2013
• Paid VAT @ 20% on all sales
• Overpaid £32000+ to HMRC
• Reclaim for £32k + Reclaim for DE VAT office
5. Personal Case Study
• €100,000 Germany Threshold passed
21/7/2014
• Monthly and an Annual Return
• DE VAT Rate 19%
• FBA movement in Spain late 2014
• Sales Tax in USA (Nexus) VAT 0%
6. Amazon UK
eBay US
eBay UK
Amazon IT
Amazon FR
Amazon ES
Amazon DE
Amazon
CA
Amazon US
eBay AU
Website
eBay DE
Love Fashion Money Flow
7. Transactional Data
• Bank Statement (Umbrella/Macro Figures)
• Total Sale Amount in domestic currency
• Total Associated Fees
• Payment Gateway (Micro Figures)
• Sale/Shipping Amount in correct currency
• Associated Fees Breakdown
• Shipping Origin and Shipping Destination
• Sold SKU/Item Description
• Date of Sale
8. Domestic UK and EU VAT Triggers
• Voluntary enrolment
• Business was already enrolled before any online sales
• Rolling 12 months sales go above £85,000 (1st
April 2017 to 31st
March
2018) to any destination
• Sales exceed distance selling threshold of another EU country from 1st
January of that year
• Example: €100,000 DE Threshold
• Origin of goods for shipping is from another EU country and not the UK
• Example: Goods are shipped from Spain to any other country
UK
EU
10. EU Country VAT % Rates EU Country Thresholds
Base Country Currency Exchange Rates for
VAT
Base Country VAT Threshold
Yearly :
• 1st April 2017 – 31st March 2018
• £85,000 for sales in 12 month rolling period
Daily/Monthly:
• GBP 1 = USD 1.5003 1st
Jan 2016 to 26th
Jan 2016
• GBP 1 = USD 1.4144 27th
Jan 2016 to 31st
Jan 2016
Government
Budgets: Can go up
or down
VAT Conundrum
11. Calculation of VAT – Manual Process
Collation of sales / refund reports
and any missing data
• Make request, wait, download for each sales channel
Normalisation of all data
into one stream with all required fields
• Mapping data across reports
• 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
Check all sales data is present
and none missing against settlement
reports
Use Pivot Tables to extract
Gross Figures and Reverse Charges due
to each EU VAT office
Sales
12. Output VAT - Ready for the Book Keeper / Accountant
Date
Sales
Currency
Sale
Amount
Product Name SKU
From
Country
Ship
Country
EU
Sale
VAT Office
Vat
Rate
Currency Gross Net VAT
01/01/2016 GBP 22.48
New Womens Plus Size Ladies Cami Pyjama Flower Floral Satin Trim PJ
Set Nouvelle [Size 26-28,Grey]
330914505819 GB GB 1 GB 20 GBP 22.48 17.984 4.496
01/01/2016 GBP 11.48
New Womens Dress Plus Size Ladies Bodycon Midi Floral Mid Stretch
Nouvelle 14-28 [Size 20,Mocha]
330927571599 GB GB 1 GB 20 GBP 11.48 9.184 2.296
01/01/2016 GBP 15.98
Womens Kimono Ladies Cardigan Lace Scallop Edge Floral Open Plus
Size Nouvelle [Size 16,Black]
231497990863 GB GB 1 GB 20 GBP 15.98 12.784 3.196
01/01/2016 AUD 32.48
Womens Poppy Print Asymmetric Hem Sleeveless Tunic Top Nouvelle
Plus Size Ladies [AU 26-28,Blue]
231489474591 GB AU 0 GB 0 GBP 32.48 32.48 0
04/01/2016 CAD 25.99 Skull Gem Dip Hem Black 18 1107-Black-18-CA GB CA 0 GB 0 GBP 25.99 25.99 0
01/01/2016 GBP 15.48
New Womens Floral Lace Cardigan Long Sleeve Waterfall Frill Nouvelle
Plus Size [Size 14,Black]
230958288534 GB GB 1 GB 20 GBP 15.48 12.384 3.096
02/01/2016 USD 41.96
New Ladies Plus Size Off Shoulder Batwing Baggy Long Sleeve Slouch
Dress Top [US 28-30,Turquoise]
231462735189 GB US 0 GB 0 GBP 41.96 41.96 0
12/01/2016 GBP -18.99 Nouvelle Exclusive Duffle Jacket Purple 22-24 3117-Purple-22-24 GB GB 1 GB 20 GBP -18.99 -15.192 -3.798
02/01/2016 EUR 18.99 Skull Gem Dip Hem Black 24-26 1107-Black-24-26_DE DE DE 1 DE 19 EUR 18.99 15.3819 3.6081
01/01/2016 GBP 22.98
New Ladies Dress Midi Party Womens Plus Size Sequin Bodycon Glitter
Nouvelle [Size 26-28,Silver]
231086381048 GB SG 0 GB 0 GBP 22.98 22.98 0
02/01/2016 EUR 13.49 Plain Elastic Jeggings Denim 20 7013-Denim-20_DE DE DE 1 DE 19 EUR 13.49 10.9269 2.5631
01/01/2016 AUD 24.98
Womens New Cami Tank Top Thin Strap Long Tunic Summer Nouvelle
Plus Size Ladies [AU 28-30,Cerise]
231534837170 GB AU 0 GB 0 GBP 24.98 24.98 0
04/01/2016 CAD 8 Skull Gem Dip Hem Black 18 1107-Black-18-CA GB CA 0 GB 0 GBP 8 8 0
01/03/2016 EUR -2.43
Dayna Damen Unisex Fleece ausgekleidet Plain Farbige Kapuzen mit Cuff
Rei�verschluss vorne Damen Jumpsuit Overall Onesie
ADE8001-Red-M GB DE 1 GB 20 GBP -2.43 -1.944 -0.486
01/03/2016 EUR -4.57
Dayna Damen Unisex Fleece ausgekleidet Plain Farbige Kapuzen mit Cuff
Rei�verschluss vorne Damen Jumpsuit Overall Onesie
ADE8001-Red-M GB DE 1 GB 20 GBP -4.57 -3.656 -0.914