Brexit: What you need to know as Amazon Merchant?
November 9, 2020
Only 60 days left until Brexit so here is all you need to know about it as Amazon seller:
From January 31st 2021 UK is leaving ES, so it means the UK will be hold as a third party country, e.g. all of the services and goods that are sold from the EU to the UK will be handled different.
UK is trying to negotiate for the FTA (Free Trade Deal) to avoid as many Brexit inconveniences as possible. It is still hard to say if this goal will be achieved.
UK is expected to withdraw from the single market and customs union, however an agreement is expected to be reached between the UK and the EU for Amazon’s developers.
It is important to note that sellers who sell goods from third countries will be required to ensure that all duties on goods delivered to customers have already been paid. The best advice for UK sellers, who sell in EU or vice versa would be to plan their stocks and evenly divide them into warehouses in both the UK and EU. VAT registration code will be required in the country where the goods are stored. Amazon seller should also be aware that some goods will need an EORI number.
Another important thing is that the fiscal representative must be delegated before Brexit starts, since several countries require non-EU companies to have a VAT representative to register for VAT. Fiscal representatives can be companies that meet the requirement and are approved by local tax authorities.
VAT returns will change following the UK’s exit from the EU single market in January 2021. Only a professional assessment of your business can show what are the VAT and customs requirements, what are the required declarations. 1stopVAT team can easily help to figure this out for you.