Shipping items to the European Union (EU) and United Kingdom (UK) can be difficult for e-commerce businesses that wish to penetrate Europe.
It is imposed as a proportion of the price of products imported into Europe. The import value-added tax must be paid in addition to any customs charges that are due while importing products. However, once products have been imported into an EU nation, they are considered to be in “free circulation” and can be freely moved between other EU countries. As UK has left the EU in 2020, from the perspective of VAT compliance, the transfer of goods between the UK and other EU countries is considered as imports.
The main issue during custom clearance is which person is accountable for the import as it determines who is liable for customs clearance. A customs representative is often required for non-resident importers to guarantee that their products are not held up at customs or sent back to the place of origin.
Importer of Record (IOR)
Some countries need importers for the record which is also called custom brokers, but this need has nothing to do with VAT compliance. In addition, the laws governing the importation of products are quite complicated and vary widely from country to country. The following three parties in import transactions should be distinguished from a customs perspective:
- Consignee Shipper ( Holds the rights of sending imports)
- Declarant / Importer: Statement of Importer / Declarant
A consignee is an exporter at a time when imported products are kept in a European warehouse when there is no customer to buy those products. In many nations, customs representatives are required to provide certain services.
A large number of nations mandate that customs representatives serve as “guarantors of imports” on behalf of the consignee. Customs brokers are responsible for imports from a legal and fiscal viewpoint, and most shipping firms do not provide this service.
TAS Consulting provides its services in most European nations based on unique situations, despite the fact that each country has its own needs and regulations.
TAS Consulting caters to the specific demands of consumers through a variety of services. Customs clearance, import VAT refunds, and tax compliance services are only the beginning of what TAS Consulting can do.
SERVICE OPTIONS OF VAT COMPLIANCE
As your tax agent in any nation where you need to register for VAT, TAS Consulting can help you. We will manage your VAT declaration and all interactions with the tax office in China
- Registration for VAT and EORI
- VAT extension for imports (if applicable)
- Calculating and submitting monthly VAT returns and associated documentation.
- Dedicated account manager oversees all VAT-related matters
- VAT payment processing
- Sending data, viewing the status and results of all VAT returns
A tax agent is not required in several European nations, and sellers can register with the tax department directly. VAT returns can be filed by registered firms in this situation.
These are some of the services and features we offer:
- VAT and EORI registration in the name of the seller
- We also provide VAT compliance support if required
Import Options for Non-European Sellers
Online sellers have access to low-cost solutions that allow their items to enter Europe efficiently, without delays in customs processing or VAT problems.
According to the location of the products being transported, each seller has access to three separate lanes. Using these channels for imports, we will make sure that the sellers are not inconvenienced by any VAT-related issues. Sellers that utilize their freight services can also use these routes.
- The UK Freeway System
It is possible to import your items into the United Kingdom without paying import value-added taxes. These services are included:
- EORI and VAT registration
- Calculation and submission of quarterly VAT returns
- Management of application conditions for import VAT extension
- Dedicated account manager provides compliance support
- The EU Fast Lane-A fast & import-free route into the European Union
The Netherlands carries world’s most efficient seaport and the EU’s finest air transport, and its most modern logistics system offers the best access to Europe.
Exporting products is made easier by its proximity to Europe’s largest economy. France and Germany are less than 500 kilometers apart and can be accessed by car, while the United Kingdom can be reached by plane in less than an hour.
Dutch customs have made an import value added tax deferral program which is called Article 23. It allows eligible importers to be exempt from import value-added tax.
This implies that non-EU firms may transport products into the EU through the Netherlands without paying any import value-added tax, and the items can be delivered to any other EU nation on the same day as they arrive in the Netherlands.
Importing products through the Netherlands is preferable to importing goods into other EU nations since these countries have complicated customs declarations and duties, as well as the necessity to pay import value-added tax.
In the Netherlands and other EU countries, TAS Consulting can serve as your financial agent and be responsible for all necessary VAT compliance requirements.
This service includes:
- EORI and VAT registration,
- Article 23 Import VAT exemption license,
- Calculation and filing of Dutch VAT returns.
- Account managers provide continuous support with dedication.
3. Direct Access to Amazon Fulfillment Center
In addition to the EU Fast Track service, items can be imported directly into any EU nation by sellers who do not choose to use them. FBA sellers must send their items to one of Amazon’s six European distribution hubs if they choose to use this service.
As part of importing FC, the seller must comply with the customs regulations of the individual EU nation in which the Fulfilment Center is located.
The seller needs to comply with the customs requirements of the specific EU country where the Fulfilment Center is located and should pay value-added tax when importing. Once the goods are delivered to one FC, Amazon will distribute the products to another FC as required without any further import or customs procedures.
In 2021, the EU VAT Reform will have a significant influence on imports from non-EU countries, including China. Recently, Chinese imports have risen significantly, thanks in large part to online marketplaces such as Ali Express, Wish, and Alibaba. As a result of dropshipping through Amazon and eBay, as well as through their websites, imports from China into the EU have also risen dramatically.