Tax Consulting and Accounting with FBA, PAN-EU and EFN
As specialists in the area of consulting and accounting our team provides a unique full service for online retailers. Especially Amazon sellers who participate in the PAN-EU and EFN program will benefit greatly from our expertise in these areas. Through our in-depth experience with international taxation we support your company facilitating strategic growth.
Since we use specific interfaces designed especially to fit your purposes, you’ll be able to correctly display even several thousand orders per month. Even customers who don’t have their own merchandise management system will benefit from an easy estimation and illustration of all revenue.
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Specialists for E-Commerce
With years of experience we're here to address all tax and accounting related questions for you.
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Specialised Consultation and Accounting for Amazon Sellers
Only with a consulting concept specifically designed for online trading as well as the necessary expertise we are able to correctly identify your needs and address them properly. This includes all fiscal particularities of international trade as well as in-depth knowledge about the processes and procedures applied by Amazon.
In 2016 Amazon sellers generated more revenue than Amazon itself.
Focus on Amazon sellers
In 2016 Amazon sellers generated higher revenues than Amazon itself. This clearly highlights Amazon’s potential as a marketplace for retailers. Besides its high media coverage through Amazon, sellers can benefit from the Fulfilment by Amazon, in short FBA. This agreement includes storage, packaging, shipping and order returns. In addition, when choosing the FBA program, sellers can offer Amazon Prime delivery for their products. Products selling through Amazon Prime achieve significantly higher sales figures, since customers enjoy this fast delivery (often within a day) option.
Service fees depend on the products and volume and will be directly deducted from sales revenue. This way sellers bypass the use of their own storage facilities and staff.
Amazon FBA, Pan-EU, EFN in tax consulting and accounting
Initially online sales handling sounds really easy and transparent. However, some processes may become quite time-consuming. For instance procedures, monitoring payments and invoicing may get out of hand easily whenever interfaces aren’t in place. Taking into account all the additional fiscal particularities, online sellers often reach their limits.
Our consulting concept is specifically designed to foster your needs as an online seller. This way we can provide up-to-date accounting and monthly financial statements compared to annual financial statements.
While stationary trading keeps transactions to be processed at a manageable level, online trading can quickly reach more than one hundred entries per day. Sales entries from various channels, receipts of payment from different providers and several other charges may make bookkeeping quite complex and challenging. Going through all these procedures and regulations with a traditional tax advisor may involve disproportionate effort for clients as well as the tax advisor himself.
Instead of placing an additional burden on you in your day-to-day business, we precisely control and optimise processes in order to support you with bookkeeping and tax advice in the future. Accounting challenges which Amazon sellers may face are listed below.
Sales Tax and Invoicing
When participating in the FBA-program Amazon sellers agree to Amazon placing their products at its own discretion throughout different logistic centres. This has consequences on sales tax, as those often need to be paid directly in the country where the products are stored. Traditional tax advisors often disregard this regulation, for instance by failing to identify the necessary taxation through the receipt of payment. Thereby, German sales tax will falsely be applied in many cases, potentially causing major losses or in the worst case causing criminal charges.
You as an Amazon seller are obligated to prepare invoices for all sales. However, the model offered through Amazon is only suitable for customers who do not use other sales channel besides Amazon.
Whenever merchandise is transferred from one storage unit to another, it is called intra-group sales. If transfer is made to a storage unit in another European country an intra-community transfer occurs. This practice takes place several times per day in the EFN and PAN-EU process by Amazon.
As a consequence, every motion is documented with the acquisition price of the product and will have to be handled like that. These motions must be reported in form of a VAT return and recapitulative statements. Considering that, a network of tax advisors in the participating countries as well as the appropriate handling of all data to be processed is necessary.
Tax threshold is supposed to secure tax revenue in the respective countries. But what exactly does that mean? As an online seller you are delivering your products not only within Germany but ideally throughout Europe. In order to ensure that the arising sales tax is distributed among all countries involved, a tax threshold was implemented. In most countries the threshold lies between 35,000.00 and 100,000.00. Whenever the threshold of products sent is exceeded, all additional deliveries from that point on are subject to taxation.
For sellers participating in the Fulfilment by Amazon this requires specific monitoring which can only be done by certain Software solutions, e.g. AccountOne. Many sellers stop the delivery process as soon as a threshold is reached. However, with the right support and systems in place delivery can proceed without any significant extra effort.
High Administrative Effort
As an online seller you encounter higher administrative effort than traditional retailers. While they easily process numerous items through their cash registry system every day, online sellers with the same amount of items to be processed need to prepare several invoices for different customers, since receivables need to be listed separately. In addition roughly the same number of receipts of payments and (if necessary) products returned need to be processed.
These “small“ challenges can quickly accumulate and lead to sellers losing sight of their numbers. This consequently might lead to high staff costs, tremendous administrative workloads and other resulting losses. Sellers losing the overview and failing to comply with legal obligations to keep records and taxable events may risk tax investigations. Tax authorities use automatic systems which enable them to increasingly target E-Commerce, being able to collect and analyse a massive amount of information in a short period of time.
We are committed to providing perfect solutions of the highest quality for our customers. In order to ensure this, it is important to focus on small details too. From shipping charges, which often are assigned to as negative costs and in return are not subject to sales taxation but instead cause negative “reverse charge“, to claims for damages of stored products. We will acknowledge and correctly cover every case, thereby avoiding unpleasant surprises in case of tax investigations.
You want to make sure everything is handled properly? We would be happy to revise your previous accounting records and support you with the correction of your accounting and tax declarations. Feel free to contact us.
Your Company is in good hands
Tax Consulting ｜ Accounting ｜ Growth
With our team we support your growth and identify new opportunities for you to expand your success further. We’ll have your back and customise processes according to your individual accounting and tax consulting needs, so that you can focus on your day-to-day business.
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Feel free to schedule a first complimentary consultation with us. We are looking forward to hearing from you!