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[email protected], Accountant
Category: Tax
Satisfied Customers: 460
Experience:  Executive Director at [email protected]
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I would like to ask regarding TAX. It is quite a complex

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Hello, I would like to ask regarding TAX. It is quite a complex problem. A year ago I wanted to sell on amazon with my EU company, but was not aware of changes of TAX requirements after brexit. I bought goods from China, only 200 pieces of puzzles to try to sell and transferred them to the amazon warehouse. Then I found out that I needed to register my company for VAT but I refused. The amazon suspended my account and requires me to register my EU company for VAT despite my not wanting to. The amazon keeps sending me tax invoices every month since despite not selling on their platform. I explained that I do not want to sell in England, but still have to register my company for VAT. Could you tell me what should I do?
JA: Have you talked to a tax professional about this?
Customer: No, I have not.
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: No, there is nothing else.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 19 days ago.
Hello, thank you for your reply. Of course I am happy to wait. I wonder if I could add more information to help you with it. Basically, the amazon compels me to register my EU company for VAT, but I do not wish to sell with the VAT in the UK because it is not worth it. Instead, I registered myself as a self employed in the UK and trying to sell puzzles on ebay. I wish to cancel my EU company as I do not use it in the EU, neither in the UK. I tried to explain this to the amazon, but unfortunately, I have limited access in the amazon due to the account suspension. However, despite not selling on the amazon, cancelling my professional account and all listing, they still take my money on a monthly basis. They told me that I have to upload VAT registration number. Therefore, my question is what implications it will have if I register my EU company for VAT and then cancel it later because obviously I will not need it. Thank you, Jana
Hello,
I apologise as we have not yet been able to find a Professional to assist you. Do you wish for me to continue to search for someone to assist you or would you like for us to close your question at this time?
Thank you for your patience,
Tetyana-moderator
Customer: replied 16 days ago.
Hi Tetyana, I am happy to wait. Could you tell me who would be able to answer my question please?

Hi, welcome to JustAnswer. I'm [email protected], a UK-Qualified Chartered Certified Accountant with over 15 years of experience. I'll be answering your question today.

the solution to your problem is registering for Vat in the EU. You will submit a nil vat return if there were no EU sales.

Then you can go for the closure of your Amazon account after it has been re-instated and proceed to de-registration of Vat

It has now become a requirement to have a Vat registration if a business is being carried out on Amazon, especially after Brexit.

I hope I've answered your question? If, however, any part of my response is unclear, please do let me know and I'll try to explain it further.

Customer: replied 15 days ago.
Hello, thank you for your answer. I have further question please. You wrote that I should register my EU company for VAT in the EU. But I live in the UK and products were sent to UK amazon warehouse, not EU. Shouldn't I register my EU company for VAT in the UK? Thank you for your answer.
Let's analyse the situation, your company is registered in the EU so is bound by the EU tax rules however the EU company is importing goods directly to the UK and then selling to customers in the UK and abroad. So import and export are from the UK. Perhaps you are better off registering for Vat in the UK as an EU company. 

The business model is quite complex but since you aim to close the EU company, its best to get registered for Vat in UK and then once Amazon account is settled you go for closing the EU company.

Customer: replied 14 days ago.
Thank you very much for your answer. I appreciate your time.

You're welcome. Happy to help

[email protected], Accountant
Category: Tax
Satisfied Customers: 460
Experience: Executive Director at [email protected]
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