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オプティ株式会社Feb 15, 2019 10:05:52 PM< 1 min read

Q, What will happen to sales on Amazon UK as a result of Brexit?

Introduction.

Cross-border e-commerce (E-commerce) has been expanding worldwide with Amazon, eBay, Rakuten, Shopify, WooCommerce, and Corona Vortex, and is now the focus of attention by all companies. Cross-border e-commerce has been introduced with the positive aspects of being able to start selling within minutes of creating a site, and new sales opportunities from markets around the world. On the other hand, local taxes and various other costs are not shared much: local taxes such as VAT are levied and collected by the seller on the local buyer, but even in the case of cross-border e-commerce, there are cases of taxation, collection, and reporting.

Not all tax accountants, lawyers, and other domestic professionals have knowledge of overseas tax and legal affairs.

IN THIS COLUMN, OPTI CORPORATION, WHICH HAS EXTENSIVE EXPERIENCE IN THE TAX ASPECTS OF CROSS-BORDER EC, PROVIDES A "CROSS-BORDER EC TAX NAVIGATOR" IN A Q&AMP;A FORMAT. WE HOPE THAT THIS CROSS-BORDER EC TAX NAVIGATOR WILL BE OF HELP TO VARIOUS COMPANIES CONSIDERING CROSS-BORDER EC.


Q] What will happen to sales on Amazon UK as a result of Brexit?

A] When exporting to Amazon, many sellers start selling on Amazon UK. Currently, Amazon requires local tax reporting for FBA sales.

As of 2021, VAT registration and declaration are also required for non-FBA sales and cases such as Shopify.

 
IMPACT OF BREXIT
 
BREXIT IS SCHEDULED FOR MARCH 2019. AMAZON SELLERS WHO USE FBA AND SELL WITHIN EUROPE WILL NEED TO REGISTER FOR VAT OUTSIDE OF THE UK.
We also offer a service to calculate the impact of Brexit. Please consider this service as well.

Disclaimer

This column contains general information only and is intended to be used at the reader's own risk. While every effort is made to improve the accuracy of the information, it may contain inaccuracies. Readers should consult a suitably qualified professional before making any decision or taking any action and assume the entire risk and responsibility for any loss arising from the use of this column.

 

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OPTI Inc.

OPTi Corporation provides international tax consulting services with a focus on indirect taxation.

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