DEV Community: FZCO Accountants

Sales tax registration and filing in the USA

FZCO Accountants — Sat, 08 Jul 2023 00:06:44 +0000

In the United States, businesses are often required to register for sales tax purposes and file regular sales tax returns. Here is an overview of sales tax registration and filing in the USA:

Sales Tax Registration:

Nexus Determination

Nexus refers to a sufficient connection or presence in a state that triggers the obligation to collect and remit sales tax. Businesses need to determine if they have nexus in a particular state based on factors such as physical presence, economic activity, or click-through agreements.

State Registration

Once nexus is established, businesses must register for sales tax with the appropriate state tax authority. Registration can typically be done online through the state's tax agency website. The process may involve providing business information, such as entity type, EIN, and contact details.

Multiple State Registration

Businesses that have nexus in multiple states may need to register for sales tax in each state where they meet the nexus criteria.

Sales Tax Filing:

Collection and Reporting

Registered businesses are responsible for collecting sales tax from customers on taxable sales and reporting it to the state tax authority.

Filing Frequency

Each state sets its own filing frequency requirements, such as monthly, quarterly, or annually. The frequency is based on factors like sales volume or liability. Some states may also offer options for businesses to file on a prepayment basis.

Sales Tax Returns

Businesses need to file sales tax returns with the relevant state tax authority, reporting the sales made, taxable transactions, and the amount of sales tax collected during the reporting period.

Payment and Remittance

Along with the sales tax return, businesses may be required to remit the collected sales tax to the state tax authority. Some states provide online portals for payment and remittance, while others accept checks or electronic funds transfer.

It's important to note that sales tax regulations and procedures can vary among states, including exemptions, tax rates, and thresholds. Therefore, businesses should consult the specific guidelines and requirements of each state where they have sales tax obligations. Utilizing sales tax software or consulting with tax professionals can help ensure accurate collection, reporting, and remittance of sales tax.

VAT registration and VAT filing service in EU

FZCO Accountants — Fri, 07 Jul 2023 23:48:52 +0000

In the European Union (EU), businesses that meet certain criteria are required to register for Value Added Tax (VAT) and file periodic VAT returns. VAT registration and filing services are available to assist businesses with these obligations.
Here's an overview of VAT registration and filing services in the EU.

VAT Registration:

Eligibility

Businesses are typically required to register for VAT if they exceed the VAT registration threshold in the country where they have a taxable presence or if they make taxable supplies of goods or services in another EU member state.

Registration Process

The specific process for VAT registration varies by country. Generally, businesses need to complete an application form and provide relevant information about their business, including legal entity details, contact information, and estimated turnover.

Assistance

VAT registration services, including accountants, tax advisors, or specialized firms, can help businesses navigate the registration process, ensure compliance with local requirements, and submit the necessary documentation to the tax authorities.

VAT Filing:

VAT Returns
VAT-registered businesses are typically required to file periodic VAT returns, providing details of their taxable sales, input VAT (VAT paid on purchases), and the resulting VAT liability or refund.

Filing Deadlines

Each EU member state has its own specific deadlines for filing VAT returns, which can range from monthly to quarterly, or annually depending on the turnover and other factors.

Compliance Support

VAT filing services can assist businesses in calculating VAT liabilities, preparing VAT returns, reconciling transactions, and ensuring compliance with the applicable regulations.

Electronic Filing

Many EU countries have implemented electronic filing systems, allowing businesses to submit VAT returns electronically through online portals or designated software. VAT filing services can help businesses navigate these electronic systems.

It's important to note that VAT regulations and procedures can vary among EU member states. Therefore, businesses should seek professional advice or consult with local tax authorities to ensure compliance with the specific VAT registration and filing requirements in each country where they have obligations.

VAT understanding for Amazon sellers

FZCO Accountants — Thu, 16 Sep 2021 17:13:23 +0000

Amazon Sellers can be a hard path to navigate. I get a lot of queries about VAT and Amazon. This post to cover to give you as much information as you need. This post will cover UK VAT, distance selling to the EU and Pan European FBA VAT.

If you are an overseas business and you are not based in the EU, then you will need to register for VAT. You have to make a plan to start making sales in the UK. It does not matter what your turnover is? You must register for VAT immediately if you are planning on selling on Amazon in the UK.

If you are considering expanding your Amazon operations into the European market, you have probably heard of Amazon sellers VAT calculation. You would be confused and concerned over VAT and how it will affect your bottom line. VAT may seem a little complicated to newcomers in these markets. They really are not as complex as you think and should not stand between you and your opportunities for growth!

A Few Thoughts on Amazon Seller VAT

Before we get started, here are a few thoughts to keep in mind when you are exploring expanding your Amazon business into the European market:

VAT is a legal requirement when selling in Europe. You cannot avoid or ignore it.
Start smaller, sell in only one country, to familiarize yourself with VAT.
You will need to do a little extra administrative work when selling to European customers.
Amazon tools, such as FZCO Accountants are available to help and can save you a lot of headaches, time, and errors.

Selling in the EU on Amazon – Distance Selling Rules

Distance selling rules are for those who sell from the UK to another EU country. So, if you sell on Amazon and sell from the UK and do not store your goods in the EU then you will be covered by the distance selling rules.

They have separate thresholds for each EU country. This can be come complicated as you need to monitor your sales to each country over a calendar year. Registering for VAT in a different country can be difficult due to the language and complexity. You normally need to get a professional to help.

Place of supply (Location of goods)

VAT rules are built around where the goods are stored. So, if you are an Amazon Seller from the UK and send the item from the UK, then they are UK sales. If you are based in the UK and sell using FBA, your good may be stored in Germany. If your goods are stored in Germany, then you are subject to German VAT rules (not the distance selling threshold).

Amazon have been stopping people using FBA if they do not give a valid VAT certificate for each country, they store goods in. If you store goods in another country other than your home country then you need to register for VAT in that country. This should put a lot of people off the pan-European amazon fulfilment program. The cost of registering in several countries can be quite high and unless your business will scale quickly you may want to hold off.

Registering and Filing for VAT as an Amazon Seller

The two biggest things to remember about registering for VAT is that you will need a separate registration for each company and that you will need to file VAT returns routinely.

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Amazon VAT Registration

When you register for a VAT you will need to present the necessary paperwork, including a passport, business documents, and administrative paperwork. While it can take two months to receive your government issued VAT number, you can begin selling your products right away using your validity date.‍

Amazon VAT Returns

VAT returns are due during different time frames, depending on the country. Germany, for instance, requires monthly returns, while the UK is quarterly. You generally have two weeks to pay before penalties will be assessed. Once you submit the VAT return, you will receive confirmation and pay the bill using a bank transfer.
Even though VAT registrations and returns are not complicated. It still may be advisable to leave the process to professionals to save time, paperwork, and costly errors.

If you think you need to register for VAT in the UK, EU or elsewhere please get in touch with us. We are expert Ecommerce Accountants and understand all aspects of selling on Amazon. Either send us an email or book a free consultation here: Contact us or find out more about us as Amazon Accountant.