This article explains the contents of the Sales & VAT and Intra-community movement of goods reports that you generate on Vendorati.com
The Sales & VAT Report spreadsheet
In this section, we aggregate the data from Amazon’s VAT transactional report you previously downloaded from your seller central account into multiple sections. You can send this report to your accountant for accounting and tax compliance purposes.
1. Local B2C Sales VAT (local Business-to-Consumer transactions):
This table includes sales made to local consumers (eg: your product was dispatched from an Amazon warehouse in Spain to a final consumer located in the same country/jurisdiction).
If an EU VAT Registered Company is not registered as an Intracommunity Operator, entered an invalid or incorrect VAT number, then Amazon charges the VAT rate of the country of dispatch / taxable jurisdiction from where the goods were dispatched and does not apply the reverse charge. Vendorati includes these transactions in this table so that you can action and declare the VAT in the correct country as a local sale.
2. Local B2B Sales VAT (Business-to-Business transactions):
This table includes sales made to Incorporated Companies and/or registered professionals in any EU member state and within the UK. You can find the Buyer VAT number and other details (provided by Amazon) when you click the breakdown icon to ungroup the data.
In certain countries (the Czech Republic, France, Italy, Poland, and Spain) and in certain cases (depending on where your company is established or registered), a local reverse-charge mechanism applies. This means that the VAT due is not charged on the invoice by the supplier but is accounted for by the customer. The customer then must report the VAT due in their VAT return but can deduct this amount in the same VAT return (generally no cash-flow impact).
In the case of commingling, a local reverse-charge mechanism may apply. For the sale of the product, you must only report the taxable base in your VAT return. Amazon will account for the VAT due in its own VAT return.
3. EU Intra-Community B2B Sales – Zero rated VAT
In this section we account for all the goods sold to EU VAT Registered Companies, between different countries of the European Union, in which the purchaser provided a valid EU VAT number at the point of sale (to prove they are not a taxable consumer) and was registered as Intracommunity operators.
These B2B sales of goods across EU borders are VAT zero-rated and the ‘reverse charge’ mechanism was applied. The purchaser provided a valid EU VAT number that was verified by Amazon on the European Commission VIES database.
This can also be verified by you on the European Commission online VIES website: https://ec.europa.eu/taxation_customs/vies/vatRequest.html
Please note that the Reverse Charge moves the responsibility for the recording of a VAT transaction from the seller to the buyer.
4. UOSS VAT (One Stop Shop – Union Scheme):
This table includes the total VAT collected from all EU distance business-to-consumer sales made between different EU member states.
To remove the high administrative burden of obtaining EU VAT Registration Numbers and managing VAT filings in up to 27 EU countries, the EU has introduced a Union One Stop Shop (UOSS) solution.
When opting in for UOSS, there is no need to register for VAT in all EU countries where your goods are shipped to the customers (B2C). You can report all EU B2C Distance Sales through a single VAT return filed in your country of establishment, irrespective of the actual ship-from and ship-to countries.
Note that this does not remove other obligations for obtaining a VAT registration number, such as holding inventory in other EU countries.
https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce/new-oss-schemes_en
5. IOSS VAT (One Stop Shop – Import Scheme):
This table includes the total VAT collected by the seller when Amazon did NOT act as a deemed supplier.
From 1 July 2021, VAT is due on all commercial goods imported into the EU regardless of their value. As such, a special scheme for distance sales of goods imported from third countries or third territories into the EU was created to facilitate the declaration and payment of VAT due on the sale of low-value goods.
This scheme, more commonly referred to as the import scheme, allows suppliers selling goods dispatched or transported from a third country or third territory to customers in the EU, to collect VAT on distance sales of imported low-value goods from the customer and to declare and pay this VAT via the Import One Stop Shop (IOSS).
If the IOSS is used, the importation (release for free circulation) of low-value goods into the EU is exempt from VAT. VAT is paid as part of the purchase price by the customer
The use of this special scheme (IOSS) is not mandatory.
The taxable person facilitating the supply through the use of an electronic interface will not become a deemed supplier, for transactions involving the following:
· Goods in consignments where the intrinsic value is exceeding EUR 150 imported in the EU, irrespective of where the underlying supplier/seller is established;
· Goods which were already released into free circulation in the EU and goods which are located in the EU and supplied to customers in the EU, irrespective of their value, where the underlying supplier/seller is established in the EU.
https://ec.europa.eu/taxation_customs/system/files/2020-12/vatecommerceexplanatory_28102020_en.pdf
(please refer to page 54 onwards)
6. VAT collected by Amazon:
This table includes total sales by taxable jurisdiction and country of arrival where Amazon facilitated the sale of goods to consumers and acted as the deemed supplier.
Taxable persons who facilitate distance sales of goods through the use of an electronic interface will be involved in the collection of VAT on those sales.
In this respect, a new legal provision (Article 14a) has been introduced in the VAT Directive providing that these taxable persons are deemed in certain circumstances to make the supplies themselves and will be liable to account for VAT on these sales (the deemed supplier provision).
The taxable person facilitating the supply of goods through the use of an electronic interface such as a marketplace, platform, portal, or similar means is the deemed supplier in case of:
1) distance sales of goods imported from third territories or third countries in consignments of an intrinsic value not exceeding EUR 150, frequently referred to as low-value goods – Article 14a(1), or
2) supplies of goods within the Community by a taxable person not established there to a non-taxable person; both domestic supplies and intra-Community distance sales of goods are covered – Article 14a.
In other words, the taxable person facilitating the supply through the use of an electronic interface becomes a deemed supplier for supplies of the following made via its electronic interface:
· Goods in consignments of an intrinsic value not exceeding EUR 150 supplied to a customer in the EU and imported in the EU, irrespective of whether the underlying supplier/seller is established in the EU or outside the EU;
· Goods which were already released into free circulation in the EU and goods which are located in the EU and these goods are supplied to customers in the EU, irrespective of their value, when the underlying supplier/seller is not established in the EU.
https://ec.europa.eu/taxation_customs/system/files/2020-12/vatecommerceexplanatory_28102020_en.pdf
(please refer to page 11 onwards)
7. Purchases:
The Purchases table refers to purchases made by Amazon when enrolled in the Amazon FBA Commingling programme.
https://sellercentral-europe.amazon.com/gp/help/external/YCUSUHREBSW7DG5
In the case of commingling, a local reverse-charge mechanism may apply. For the acquisition of the same product from the other seller, you must report the taxable base and the corresponding VAT due and VAT deductible amount in your VAT return. Consult your tax advisor/accountant for the correct reporting requirements.
8. Exports:
This table includes all sales made to a non-EU member state. In other words, sales are made to a third country/territory.
Please note that these sales must be included in each VAT return as a zero-rated sale as they are out of the scope of EU VAT rules.
The table below provides a list of territories where the EU VAT rules do not apply. Therefore, Amazon VAT Calculation Services treats shipments to these territories as VAT exempt for exports.
| Territories | VAT rule |
|---|---|
| The Canary Islands; | Tax-Exempt |
| The Ã…land Islands; | Tax-Exempt |
| The Channel Islands( Jersey/Guernsey) | Tax-Exempt |
| The Island of Heligoland; | Tax-Exempt |
| The territory of Büsingen; | Tax-Exempt |
| Ceuta; | Tax-Exempt |
| Melilla; | Tax-Exempt |
| Livigno; | Tax-Exempt |
| Campione d’Italia; | Tax-Exempt |
| The Italian waters of Lake Lugano | Tax-Exempt |
| The French overseas departments; | Tax-Exempt |
The Intra-Community Movements of Goods tab
This table includes the transfers of stock units made between the different EU Amazon warehouses and their value.
Amazon constantly moves inventory between their warehouses in Europe to bring it closer to potential customers around the Union, thus reducing shipping time and costs. The acquisitions and dispatches of stock between European customs must be accounted for reporting and compliance purposes.
These intra-community movements of stock from one European country to another must be declared with the appropriate authorities using the cost values per SKU/ASIN.
Please note that the accuracy of this report relies entirely on yourself, inputting the correct cost value data per SKU/ASIN into the Vendorati platform. The report is broken down by SKU so that you may update the value when necessary (i.e.: cost).
https://ec.europa.eu/eurostat/about/opportunities/consultations/intrastat