VAT

Estimated reading time: 10 minutes 30 seconds. Ecommerce sellers used to have a pretty easy time when it came to sales tax, but those days are gone. In June 2018, a landmark case turned the tide on sales tax collection for good. The Wayfair vs. South Dakota ruling redefined the criteria for business owners eligible to pay sales tax. Prior to this ruling, business owners needed physical presence in a state to be considered eligible to remit sales tax.

Estimated reading time: 22 minutes 30 seconds. eBay sellers generally need to pay most attention to the following taxes depending on their location: Sales tax (for the US) VAT or GST (for countries outside the US like the UK & Europe) Income tax (for most sellers, wherever they are) For more detailed information on these, select the guides linked above. Here, we’ll cover some of the frequently asked questions about eBay taxes across the board.

Estimated reading time: 5 minutes. This guide is part of our Ecommerce Accounting Hub, fundamentals series. If you’ve been with us since the beginning, you’ll know how complex managing ecommerce accounts can be. And then there are the added layers of sales tax, inventory, and merging multiple channels to consider, all of which directly impact your books. To make sellers' lives easier, we have a directory of our trusted accounting partners based all over the world, so that you can find the expert, professional help you need.

Estimated reading time: 51 minutes. So you’re an Amazon seller interested in VAT? Perhaps you’re in the US wanting to do business in Europe, or you’re in Europe and keen to understand your Amazon tax obligations. Either way, this guide will break it down for you. Whilst there are similarities between VAT, sales tax and GST, the former is a little unique. The EU member states have some parameters they must keep to, and some they don’t.

Estimated reading time: 17 minutes. When you sell online to a global market, you’re opening up your business to a world full of consumers with disposable income. You’ll also become subject to meeting tax thresholds in multiple economies with different rules (sigh). And with ecommerce being the lucrative beast that it is, tax authorities in those multiple economies are onto you. But don’t close up shop just yet. In this guide, we explore all things VAT in the UK and Europe - what it means for eBay sellers like you, and how to get started.

Estimated reading time: 5 minutes. There’s no denying that automation drives efficiency and reduces cost. In the long run, the most efficient players in any given market have the best chances of winning market share and building long-lasting businesses. For ecommerce, warehousing and fulfilment, Amazon has positioned itself to take full advantage of the coming automation era by implementing the latest technologies and creating a highly automated eco-system. Amazon’s offering makes it much easier for merchants to sell internationally than ever before.

Estimated reading time: 7 minutes. This guide was correct at the time it was written. Please refer to the official tax authority webpages for the most up-to-date information, and your accountant for tailored advice. A top priority for any established Amazon seller is charging and collecting sales tax. Why? Because if you’re unable to meet your sales tax obligations, the responsibility and repercussions rest solely on your shoulders – not with Amazon.

Estimated reading time: 7 minutes 30 seconds. Anyone who runs an online store will know that the beauty of ecommerce is its capabilities are limitless. It’s a fantastic way for retail stores of any type and size to reach a new community of customers – enabling you to expand your sales worldwide without the extensive costs of setting up a brick-and-mortar store. Ecommerce has leveled the playing field, making it possible for small businesses to compete with corporate giants on an international stage.

Estimated reading time: 11 minutes, 30 seconds. Making a business of selling online doesn’t elude the tax authorities anymore. Not in this day and age, with ecommerce worth trillions of dollars a year. It used to be that ecommerce sellers could fly relatively under the radar with regards to tax, but as the industry grew and the revenue soared, attention turned its way. Today, 63% of shopping experiences start online, and the impact of the COVID-19 pandemic has only increased the popularity of and reliance on this method of consumption.

Estimated reading time: 6 minutes. Just about everything is taxed. And as you’ll no doubt be aware, it’s not all the same kind of tax. Tax has become a strange, disconnected sort of extended family tree. Your income tax branch includes members like capital gains, estate, payroll, and inheritance tax. Then there’s the awkward, money-hungry branch of property, real estate, and gift taxes. And these barely scrape the surface. Here, we’ll be talking about the exotic foreign cousin of the goods and services tax family.

Estimated reading time: 9 minutes.  Anyone who runs an online store will know that the beauty of ecommerce is that its capabilities are limitless. It’s a fantastic way for retail stores of any type and size to reach a new community of customers – enabling you to expand your sales worldwide without the extensive costs of setting up a brick-and-mortar store. Ecommerce has levelled the playing field, making it possible for small businesses to compete with corporate giants on an international stage.

Running an ecommerce business in the UK comes with a unique set of challenges and opportunities. Regardless of whether you’re selling on Amazon, Shopify or another digital avenue, you need to have accurate financials in order to make sound business decisions. Many digital entrepreneurs (and their bookkeepers) manually enter the sales or payout data into their accounting system. While it may seem like a suitable solution in the beginning, this can result in more work and a wide range of issues such as reporting errors, difficulties with comparing the performance of different channels and time periods, and challenges when it comes to selling your business down the line.

The A2X team is currently spread out far and wide for a very busy end of year. Whether you are in London, Singapore or Toronto, there will be an event nearby. Giving you plenty of opportunity to meet the team and check out firsthand the new Shopify integration and the new VAT features for Amazon accounting with A2X.  A2X in London After a successful QuickBooks Connect 2019 in San Jose.

Estimated reading time: 8 minutes 30 seconds. MTD, or Making Tax Digital, impacts all aspects of the way Amazon sellers in the UK account for VAT to the HMRC. Despite the initial and rather urgent push for sellers to start their transition to compliant digital systems early, many delayed. This means that many UK Amazon sellers are still trying to catch up and understand this shift to MTD. When I first planned to write this blog, I never imagined that I’d actually get to be in the UK as it approached this transition.

This article is has been written with our good friends at OD Accountants in the UK. It discusses the growth of Amazon FBA in the UK and how OD Accountants have been working though the challenges of Amazon accounting with the help of A2X. During recent years, online marketplaces have transformed the way we shop. Amazon brings together sellers, merchants and businesses in almost every industry into a highly competitive marketplace.

Last week Ed Rosenberg interviewed A2X partner firm AVASK about VAT compliance and enforcement for Amazon Sellers. James and Angelos covered how VAT compliance is being enforced for Amazon Sellers and the penalties faced if a business ignores compliance. VAT is complex, with some very serious implications for your business, check out the full interview below to get a sense for the challenges and importance of the VAT accounting for Amazon sales.

Eagle & Fox had big plans for their business, but their accounting was holding them back. _Here’s how A2X helped the Amazon retailers simplify their VAT reporting, speed up their accounting and grow their business. _ Fergus and Emma Macdonald run Eagle & Fox, a creative online retailer based in the old sea port of Leith, Scotland. They merged their two brands, Kilt Society and The Tartan Blanket Co, into one dream company – a smart and efficient move.