Movement of goods on Amazon - how to settle VAT?
When you decide to sell on the Amazon marketplace, you can choose a multi-storey model. What does it mean? Amazon has its warehouses in many countries of the European Union and freely moves goods between them, so that the final deliveries come from the closest domestic buyer. Is the mere movement of goods on Amazon taxable? The answer is yes, so let's check how to account for VAT on such a transfer.
In which countries does Amazon have warehouses?
Amazon currently has warehouses in European countries such as: Poland, Germany, Czech Republic, Spain, France, Italy.
WDT, i.e. intra-Community supply of goods
We deal with intra-Community supply of goods when an active VAT payer in Poland, registered for VAT-EU, sells to another active taxpayer from an EU country other than Poland.
The intra-Community supply of goods also arises when a Polish taxpayer registers for VAT and VAT-EU purposes in another country and from this place sells goods to a VAT-EU taxpayer from another EU country and sends the goods to it. Important in this case is the fact that the goods cross the country border and the VAT-EU status of the buyer.
These are not the only cases where we will deal with an intra-Community supply of goods and the obligation to prove it for tax purposes. WDT is also created when an entrepreneur transfers his own goods from Poland to another EU country - this activity is called "non-transactional WDT".
Moving goods from Poland to warehouses on Amazon and VAT
Regarding the tax burden, a non-transactional intra-Community supply can benefit from a 0% VAT rate - therefore not charged to the seller's budget - but this requires him to register for VAT in the country where the warehouse is located. Therefore, when deciding on this type of sale, in practice, one should bear in mind the need to register for VAT purposes additionally (outside Poland) in each EU country where Amazon warehouses are located.
See the webinar: Sales on Amazon and tax obligations
The material was created in cooperation with IdoSell.
You have settled the goods delivery - do not forget to settle the receipt of the goods!
WDT is associated with the movement of goods, but as a release. However, we also always have the other side of the transaction, i.e. the receipt of the goods. And since we are the recipient of the non-transactional intra-Community goods transport on Amazon, we also need to prove intra-Community acquisition of goods, i.e. the settlement of the goods receipt transaction. It is neutral in terms of VAT, but requires a formal statement in the declaration submitted in the country where the warehouse is located.
Settlement of VAT in sales by Amazon - formal obligations
In summary, sales using the Amazon platform, taking into account the model in which Amazon moves our goods between its warehouses, usually does not involve the need to incur additional taxes only. However, it provides the seller with many formal obligations, the failure of which will expose them to negative tax consequences on the part of the tax office. Entrepreneurs are used to the fact that sales are subject to taxation. In the case of Amazon, apart from selling, the mere movement of goods from Poland to Amazon's warehouse in another country results in the need to prove the transaction. Therefore, it is important to remember that selling on Amazon is a settlement of three separate VAT activities:
non-transactional intra-Community supply in Poland (or the country where the warehouse is located from which the goods are shipped, when the transfer takes place from the warehouse in which the entrepreneur registered for VAT outside Poland);
a non-transactional intra-Community acquisition in the Member State where Amazon's warehouses are located;
taxation of sales in accordance with the regulations of the country from which the goods are sold (i.e. depending on which warehouse they come from).
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Shipment of Goods on Amazon - Questions and Answers
What if I don't register in the country where the Amazon warehouse is located?
Since the very transfer of goods imposes a taxation obligation, and the lack of registration results in the lack of the right to benefit from the preferential 0% ICA rate, the transfer transaction will be taxed at the domestic rate, i.e. the usual 23%. Re-taxation will occur upon sale of the goods to the final purchaser. The entrepreneur will therefore pay a double tax.
How do we know which country our goods are in?
Amazon keeps reports informing the entrepreneur about transfers between warehouses that are made by Amazon itself. This means that the entrepreneur must control these statements to show non-transaction ICS in JPK_V7 sent monthly to the Polish tax office.
How do I document the movement of goods on Amazon?
According to the authorities, this should be an invoice for VAT purposes only. Therefore, it will not affect the entries in the Book of Income and Expenditure (KPiR). The invoice for the movement of goods on Amazon is shown on both sides, i.e. the seller and the buyer, will have the entrepreneur's data (i.e. an invoice is issued for himself), but with different NIP numbers, and in principle - VAT-EU numbers. On the VAT-EU seller's side with the PL prefix, and on the VAT-EU buyer's side with the prefix of the country in which the warehouse is located, where the goods belonging to the entrepreneur were transferred.