VAT

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 Dakotaruling 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.

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) 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. It might be worth bookmarking this page for quick and easy reference later on!

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 partnersbased all over the world, so that you can find the expert, professional help you need.

Almost 90% of UK shoppersuse Amazon. The platform has almost 300,000 sellersalready. In 2020, its revenue rose 51%, accounting for 5.5% of the country’s retail turnover. There’s huge demand and significant supply, but Amazon both in the UK and abroad shows no signs of slowing down or decreasing in size. Source: Statista. You might be wondering whether selling on Amazon UK is worth it. Well, it seems not only was Amazon dominating long before we’d ever heard of “COVID-19”, but that the pandemic may have added fuel to its momentous fire.

This is a guest post by our friends at HelloTax, specialists in VAT compliance and ecommerce tax automation. The introduction of the One-Stop Shop (OSS) initiative in July 2021brought about a number of changes affecting online sellers and their taxes in Europe. And not just sellers, either. Any active business owners or stakeholders on any of the online marketplaces are likely to be impacted by the changes. New rates, recipients, and criteria for eligibility have been defined, so anyone with business interests in or around Europe needs to get up to date.

The VAT rules changed for ecommerce sellers in June/July 2021. If you’re an Amazon seller based in or selling into Europe, here’s what you need to know about VAT. In this brief guide to your Amazon VAT obligations: Table of Contents What is VAT? How Much is VAT and Who do I Pay? The 2021 Ecommerce VAT Package The Best Warehousing and Fulfilment Services Keep Track of Your Taxes with A2X Also on the blog Learn how to manage your Amazon accounting the right way

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.

If you’re an Amazon seller trading into or within the UK and Europe, you’ll no doubt have noticed a lot of VAT changes in recent months. First as a result of Brexit, and most recently, the 2021 Ecommerce VAT Package, active from July, which shifted the goalposts in a few different ways. In this guide, we’ll break down what you need to know about VAT, the new regulations and new options for those filing, and creating your own Amazon VAT strategy.

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.

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. Therefore, it’s imperative to know something about the sales tax applicable to your Amazon business – right from the start.

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.

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.

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 Accountantsin 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. This level of competition helps to keep prices down and offer consumers more choice.

Last week Ed Rosenberg interviewed A2X partner firm AVASKabout 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 Societyand The Tartan Blanket Co, into one dream company – a smart and efficient move.