Million Dollar Case Study: Europe – Session #6, VAT in Europe

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!

Register for FREE at junglescout.com/million