million dollar case study: europe – session #6, vat in europe
TRANSCRIPT
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
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 ChinaSession #5: Nailed down a product design specification
TODAY:Samples are ordered. Let’s figure out VAT &
legal!
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.
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
VAT = Value Added Tax (a tax paid by the consumer collected by the seller)
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
How To Calculate VAT
“Seller Central” price = Sales Price VAT inclusive
You need a VAT number when:
A) Store in a countryFirst day of Storage
B) Pass the Distance Selling Threshold LimitFirst Sale after
When Do You Need To Register?
How To Get A VAT Number
How to get a VAT Number as an Amazon seller:
A) Found a companyB) Use a Fiscal Agent/Representative
Amazon Storage Options
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)
VAT Registration and Returns
Do-it-yourselfvs.
Amazon Servicevs.
External Partner
DE VAT Return Sample
Where to get the data from Amazon
Importing Goods From Outside of Europe
EORI Number:Importers ID Number to link goods to your company
Import VATReclaimable with next VAT ReturnDutiesNot reclaimable
FAQ’s
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?
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
Join Us Next WeekJoin us next Wednesday Amazon product branding tips and
processes!
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