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!

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. 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. Introducing Christoph Prokes
◍ Amazon VAT and PAN EU
Expert
◍ Co-founder at FBA-hero.com
– VAT Automation Software
These slides cannot be considered in any way as
tax, legal, accounting or any other advice.

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. VAT = Value Added Tax
(a tax paid by the consumer
collected by the seller)

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. How To Calculate VAT
“Seller Central” price = Sales Price VAT
inclusive

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. 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. Amazon Storage Options

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. VAT Registration and Returns
Do-it-yourself
vs.
Amazon Service
vs.
External Partner

13. DE VAT Return Sample

14. Where to get the data from Amazon

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. FAQ’s

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. 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:
https://www.junglescout.com/session6-HW

19. Join Us Next Week
Join us next Wednesday Amazon product branding tips and
processes!
Register for FREE at junglescout.com/million