As we all know, nothing has a completely beneficial impact on people. To some extent, there will be some defects, even the pan-European plan launched by Amazon to provide convenience for sellers. Sellers should know its advantages and disadvantages.
According to EU law, sellers must have warehouses in their own country to use warehouses in their own country, which means that sellers on the European Amazon website need to register VAT in five countries, and the risk of VAT inspection for unregistered sellers is significantly higher than that of registered sellers.
Account inspection may have the following risks:
Account suspended;
FBA listings are independent;
Sellers who adopt this procedure cannot ship to Germany;
Deposits are frozen.
We all know that VAT compliance is the general trend, and in the long run, sellers should legally register VAT. It is proposed that sellers should not use this plan simply to save logistics costs, but should carefully consider and prevent various risks that may arise. The safest way is to register VAT in five countries.
So far, Amazon’s pan-European plan has been going on for several years, and I believe that sellers have fully understood its advantages and disadvantages. However, with the development of the Amazon platform, more and more new sellers are joining in. I believe that there are still many European sellers who only know that if they do not register for VAT, they will increase the risk of being audited by the platform. So what should they do?
For platform monitoring, sellers can refer to the following methods:
For accounts that have been banned by the platform, sellers need to verify whether the account needs to register for VAT. If the fee is high, sellers may consider reapplying with new information. If sellers plan to participate in the pan-European plan, please be sure to participate in the five-country joint transport. If you do not participate, please close it. If it is a short-distance transportation sales, the seller can directly apply for a British tax number to sell to other countries.
In addition, no matter which European country the seller uses its warehouse in, it must register for a local VAT. As an Amazon seller, learn how to avoid and prevent the impact on your account to the greatest extent possible.