Providing Financial Services Worldwide since 1988
FRQUENTLY ASKED QUESTIONS
Q: What is ‘VAT’?
A: VAT (Value Added Tax) is a form of consumption tax. All 28 European countries have a VAT tax. Each country also applies its own VAT rate. VAT collected from Amazon sellers is a key source of revenue for any government.
Q: Why should I register for VAT?
A: You may be legally required to do so. If you do not comply, the tax authority can fine you and in some cases stop your goods getting to your customers. They have even been known to report you to Amazon and Amazon often suspends the accounts of their sellers for not being registered.
We can discuss with you all your potential VAT obligations – just email us and request a time and give us your name and phone number.
Q: Most websites I go to regarding European VAT registration have tons of information available. Whys doesn't your website have all of that information?
A: Our goal was to make the process simple and easy for the client. Not quality them for a PHD in VAT Registration and Reporting. Not many have time or desire to get bogged down in that. VAT registration in 7 different countries, 7 different languages and with 7 different rules, are complicated. But the Amazon client doesn’t want it to be any more complicated than it needs to be. That is why we are doing this service, to make it as easy as possible. We give basic information on the website, and specific questions can be asked by email as needed.
Q: Are US and other non-EU company's eligibility for VAT certificates in Europe?
A: Most VAT suppliers will tell you that if you are applying for VAT in Italy, Poland or France. Especially France, that you will need to open up a UK company. The reason for this is because in these countries, especially France, the governments holds the registered agent financially responsible to pay VAT taxes for non-EU companies if the client does not pay. That is not the case generally for EU-companies.
We have established relationships within our network of European accountants that we work with that provides for us not to have to require that non-EU companies open up an EU corporation. There are a few other small requirements that need to be satisfied by non-EU companies, but they are far less troublesome, onerous and expensive than opening an EU company.
Q: How much time does it take to get my VAT certifications?
A: Once we have all the paperwork it can take up to 4 – 6 weeks to receive a VAT registration number, depending on the country. Sometime longer if a country is running behind.
Q: What if I don’t get the information you need to compile the VAT returns to you on time?
A : f we don’t get the correct data sent to us in time, the tax authority can issue penalties or fines that you will have to pay in addition to any VAT you owe. Your customer service manager will work with you each time a VAT return is due to ensure we have everything we need to keep you compliant.
Q:How often will I have to submit a VAT return?
Of the seven EU countries for which we provide VAT certificates, there are 3 that require quarterly reporting (UK, Italy and Spain) Italy requires a year end 5th report. There are 4 that require monthly reports (Gernany, Poland, Czeck Republic, and France.
Q: How much will it cost?
A: Prices vary depending on which country you need to register in.
Q: How often will I have to submit a VAT return?
A: This depends on which country you are registered in. Some countries will ask for VAT returns each month, others – quarterly or even bi-monthly. We will ensure you never miss a deadline through our timely email reminders.
Q: Do all companies like yours have accountants that work in house to complete our VAT applications and get us registered?
A: No. They will say they do to make themselves sound big. But the truth is, they don’t. They, like us, have a network of independent professional accountants in each country that are under contract. We spent a long time before we took on our first client, over a year, interviewing aand finding professional accountants in each country that understand the VAT needs of Amazon sellers, speaks perfect English, were willing to work with us according to our specifications, were eager to get our business, were able to communicate with us anytime we had a question or needed a client update, had a good attitude, and gave us a wholesale price based on volume that made it possible for us to be competitive. We are always looking for good accountant relationships with EU accountants who can supply our clients' needs because we are growing and we want to make sure we do not give our accountants more than they can effectively handle.
If your would like our registration & reporting fees, please request on our contact form.