Recently, some of our France Amazon customers receive the email from France tax bureau for VAT registration. The email says, they will restrict the selling on Amazon, if the sellers fail to sumbmit the VAT certification. Including other Europe Amazon sites. They are very worried aboout this,because they have many hot selling products on Amazon.
Besides, some sellers told us that the Amazon deadline is 31st May. It’s worth noticing that this email mentioned the Spain VAT.
Which sellers will receive such emails? Why the deadline in the emails are different? Why do some sellers need to provide France and Spain VAT registration?
1. The registration time of FR Amazon is different.
Since sellers registered Amazon FR at different times, so the VAT registration deadlines are different. How long will sellers receive the VAT email from Amazon after store opening? This is up to France tax bureau and Amazon.
2. Related with the PAN EU.
Sellers need to register France and Spain VAT at the time, it’s because that the shipping uses France or Spain warehouse. In the 1st email, Amazon proposed that, if sellers fail to submit the France VAT, they not only restrict the selling but also remove your store from PAN EU.
3. PAN EU plan
PAN EU is for the FBA plant of the UK, Germany, France, Italy, and Spain. Sellers in the PAN EU plan can store their products in any FBA warehouse in these 5 countries. That is you agree on Amazon stores your inventory in those countries. So as long as sellers ship the item from a local warehouse in these 5 countries, they need to register VAT in these countries.
4. Why join the PAN EU?
In the PAN EU, no matter where you ship the item in Europe, sellers just need to pay the local shipping cost rather than the EFN cost.
5. Which sellers should register France VAT?
Sellers whose remote sales amount is more than 35 thousand Euros must register France VAT, and pay the tax by 20% rate.
6. Selling on several platforms at the same time?
The remote sales amount is not from one platform, but also includes eBay or others that use the same France VAT.
7.What about other countries VAT?
Amazon VAT on all sites is a trend, if want to have a longterm business, it’s best to submit the VAT registration before the deadline.