Many of our clients want to sell in Europe. And since the UK offers the fewest hurdles, most Amazon seller decide to launch in the UK. However, before you launch your business on Amazon in Europe and before you get your business officially started in the UK, let’s point out some of the consequences so there are no surprises:
- There are no UK government charges for applying for VAT and EORI.
- Opening a Amazon Seller Central account in Europe is free if you select the "individual account". If you select the "professional" account you will pay 25GBP/month (excl. VAT)
- As a VAT registered seller in the UK you can claim back import VAT.
- Once VAT registered in the UK and once in possession of an EORI number you will be able to ship your goods to the Amazon UK warehouse and you can sell your goods within the entire European Union on all 5 Amazon marketplace. As required by law, you will charge 20% VAT on all items you sell.
Pay attention to these obligations
Once VAT registered the UK you need to quarterly file your VAT returns. In other words, the 20% you charge your clients need to be passed on to the HMRC (the UK tax authorities). Some accounting softwares (e.g. Xero) can potentially make this process very easy. Likewise, if HMRC owes you money, they will return money to you. You might need support from a CPA to keep your US and EU business separate and to correctly calculate your VAT obligations. We are NOT an tax lawyer and/or accountant, i.e. we will not be able to support you other than sharing our experiences and potentially linking you with another professional.
If you need help with launching your business in Europe, we can help! Our AMAZON EU LAUNCH package includes the following:
- Guide you through UK VAT registration process.
- Guide you through EORI registration process (both mandatory to import goods to and sell goods within the EU)
- Support (if needed) with UK Amazon SellerCentral account set-up
- Translation of your first ASIN from English to German, Spanish, Italian or French and (if access provided) direct upload to Amazon Europe SellerCentral account.
- If needed listing optimization
- Time line: approx. 4-5 weeks (depending on how quickly the VAT registration process goes)
Here is what we usually need to get things started:
- A piece of primary evidence, e.g. a copy of government issued photo identification such a passport, photo drivers license or national identity card. —> as pdf!! (we won’t be able to finalize the application without at least one of these documents)
- Two additional pieces of evidence, e.g. any of the following: mortgage statement, lease/rental agreement, birth certificate, marriage or civil partnership certificate. Again, we will need those as pdf! (we won’t be able to finalize the application without two of these documents)
- Have the following details ready: Registered home address, bank account details, company address information, incorporation documents & date of incorporation, EIN
ATTENTION: Max file size is 5MB and all documents only in PDF format
As always, reach out to us if you need any help. If you are ready to launch in Europe, you might be interested in one of our Amazon EU launch packages.