Monthly Archives: December 2024

It’s just been announced that Extended Producer Responsibility (EPR) Services on Amazon is ending on Tuesday 31 December 2024.

Find out more about what you need to do to stay compliant, and see how we can help.

What does this mean for sellers?

According to Amazon’s announcement, this update is effective from Thursday 26 September 2024, which means:

• the EPR Services on Amazon programme is closed to new sellers wanting to register for EPR

• Amazon sellers already using this programme will be informed by Amazon of the next steps

• Amazon sellers using this programme need to transfer across to their existing service providers – who will take care of EPR filings and representation

• if you’re already with AVASK, there’s nothing else you need to do

Read more about EPR and why it matters.

What do you need to do next?

EPR Services on Amazon will cease operations on 31 December, so make sure to have either your existing provider, or a replacement provider, in place to seamlessly take over and ensure your continued EPR compliance in Europe.

Also, we’re running Q&A sessions in multiple languages to help support you during this transition and answer your questions.

Join our live Q&A webinars

VAT-exempt goods and services

Now, let’s explore items and services that are exempt from VAT in the UK. These are specific categories that don’t include Value Added Tax (VAT):

1. Healthcare services:
   • Medical treatments, doctor visits, and hospital services are exempt from VAT. This includes both public and private healthcare providers.
2. Education and training:
   • Educational services provided by schools, colleges, and universities are VAT-exempt. This covers tuition fees, textbooks, and educational materials.
   • Vocational training courses and apprenticeships also fall under this category.
3. Financial services:
   • Services provided by banks, insurance companies, and financial institutions are exempt. Examples include bank account management, insurance policies, and investment advice.
4. Insurance:
   • Insurance premiums (life insurance, health insurance, property insurance) are not subject to VAT.
   • However, some insurance-related services (such as legal advice related to insurance claims) may still attract VAT.
5. Postal services:
   • Basic postal services, including sending letters and parcels, are VAT-exempt.
   • Additional services like express delivery or registered mail may have VAT implications.

Keep in mind, the VAT exemption status may change depending on your situation and the type of transaction.

For accurate guidance, refer to the official rules or consider getting advice from the pros to make sure you’re following VAT regulations correctly. Stay in the know!

UK VAT registration and thresholds

The VAT registration threshold marks the point when businesses must sign up for VAT. If your total sales (excluding exempt goods and services) exceed this threshold or are expected to soon, you must register for VAT in the UK.

Currently, the VAT registration threshold is £85,000. As of April 2024, the threshold will be at £90,000 – but always double-check the latest figures on the official HMRC website.

UK VAT returns: a quick guide

Registered businesses in the United Kingdom must regularly file VAT returns. Here’s a quick overview:

• Frequency of filing: Most businesses file VAT returns quarterly (every three months). Some with lower turnover may qualify for annual returns.
• What to include in your VAT return: Your VAT return should cover sales (output tax) and purchases (input tax). Report the total VAT owed (output tax) and reclaimable VAT (input tax).
• Online filing: Use the HMRC online portal for submission. Ensure accuracy in sales, purchases, and owed VAT.
• Deadlines: Submit your VAT return and pay any due VAT by the deadline (usually one month and seven days after the VAT period ends). Late submissions may incur penalties.
• Adjustments: Make prompt adjustments for errors or omissions in previous returns to avoid penalties.
• Digital record-keeping: Maintain detailed transaction records. Digital record-keeping is crucial for accurate VAT reporting.

VAT on imports and exports

Importing goods? Paying VAT upon importation is your responsibility. But, when you’re exporting goods from the UK, they’re generally zero-rated for VAT – no VAT on export sales.

Imported goods and VAT:

• Typically charged at the same rate as if sold within the UK.
• Some items like art, antiques, and collectors’ items might have a reduced VAT rate.
• VAT-registered businesses have options:
  • Use postponed VAT accounting on their VAT Return, allowing them to declare and reclaim import VAT in one go.
  • Pay import VAT directly upon importation and later reclaim it as input tax.

Temporary imports:

• Importing goods temporarily (with plans to re-export within 2 years) lets you get relief from import duties
• If you later choose to release temporarily imported goods for general use in the UK, be prepared to pay duty, import VAT, and compensatory interest for specific goods

Exports and zero rating:

• Goods leaving the UK are seen as being used outside the country, making the supply of exported goods zero-rated if certain conditions are met
• No VAT is applied to exports from Great Britain to locations beyond the UK or from Northern Ireland to destinations outside the UK

As you’d expect from the world of shipping and customs, things are constantly moving. Together with Amazon, we’ve made changes to systems and processes that are designed to be simpler for you, helping to keep your business running smoothly and growing across the UK-EU border.

See what’s new for all sellers based in the EU and UK.

What do the new changes mean for sellers?

Overall, you can expect to see:

• New booking system which links Seller Central with the AVASK Portal

• Connection to your Amazon Seller Central account with our Client Portal (Infiniti) through an API

• Import VAT deferral for EU and UK sellers

• More departures from sort centres and expanded routes

• Dedicated Amazon support email address for sellers: c2s2-customer-service@amazon.co.uk

• Better shipment tracking and notifications

• Expanded bundles launching

Let’s take a closer look at each of the new updates:

1. New shipment booking system and API connection 

One of the major updates is the introduction of a new booking system aimed at improving the efficiency of shipment bookings. Previously, you had to enter shipment details on Amazon Seller Central and then duplicate this information on the AVASK client portal.

The new system eliminates this by allowing you to submit all necessary information directly on Seller Central. This includes:

• ASINs

• country of origin

• commodity codes

The API connection between Seller Central and our client portal further streamlines the process, meaning quicker approval and processing of shipments.

The integration allows AVASK to efficiently process bookings by approving or rejecting them and collecting the shipment brokerage fee, and significantly reduces the time required to get shipments from the UK into Amazon FBA in the EU, and vice versa.

Read more about the new booking system

2. New import VAT deferral for UK and EU sellers

Import duties are an important consideration for sellers. Unlike VAT, import duties cannot be deferred, but there are trade agreements between the UK and the EU that can reduce or eliminate duties for certain products.

Deferring import VAT is key to improving cash flow and ease your financial burden. In France, Germany and the UK, sellers can use postponed VAT accounting (PVA) or similar deferral mechanisms to defer import VAT, meaning they don’t have to pay it upfront and then reclaim it later. For example, in Germany, the ATS program allows sellers to defer VAT by routing shipments through the Netherlands using Article 23.

How to defer import VAT

• Register for PVA when registering for a VAT number in the UK

• Defer VAT payment until filing VAT returns, improving cash flow

Key things to know about import duties

• Import duties are typically a percentage of the product’s value and can vary depending on the product and its country of origin.

• Be aware of the duty rates for your products, which can be checked on GOV.UK or the EU TARIC system.

• Products manufactured in the UK or the EU may qualify for zero percent duties under the trade agreement, provided they meet the origin criteria.

3. New Amazon sort centre in Rochester and more departures for UK sellers

Amazon has opened a new sort centre in Rochester, UK, replacing the previous centre in Weybridge. This change is part of an effort to increase the frequency of departures, with three to four departures per week now available. This improvement aims to reduce delivery times and enhance the overall efficiency of the shipping process.

Benefits of the new sort centre in Rochester

• Expected to streamline the shipping process by providing more frequent departures

• Shipments can be processed and delivered more quickly, reducing overall transit time

Ensure your shipments are directed to the new sort centre in Rochester rather than Weybridge.

4. New expanded shipping routes for EU-based sellers

The ATS programme has expanded its routes, allowing EU-based sellers to ship from additional countries. Previously, sellers could only ship from Germany, but now they can also ship from the Czech Republic, Poland, the Netherlands, and Austria. This expansion provides more flexibility and options for sellers looking to move inventory across borders.

The new shipping routes mean that:

• You can now store goods in countries like the Netherlands and then ship them to the UK via Germany

• Sellers have more options for storing and shipping inventory

• It’s now easier to manage cross-border logistics

5. Better shipment tracking and notifications

To address the need for better tracking, Amazon has implemented a notification system for the ATS program. The system provides updates through Seller Central, where you can see the status of your shipments at various stages. You’ll receive updates on key milestones in the shipment journey, such as:

• when the shipment is received at the sort centre

• when it leaves the sort centre

• when it arrives at the destination marketplace

These notifications are available via Seller Central, giving you better visibility and control over your shipments.

6. New Amazon bundles for VAT, customs, and EPR

Amazon has introduced new bundles that include VAT numbers in the UK, France and Germany, customs, and Extended Producer Responsibility (EPR) services. These bundles are great for new sellers, or those who don’t yet have VAT registrations. When they launch, they’ll offer an even better way to handle VAT registration, EPR registration, and customs clearances, making it easier to expand your operations across borders.