As we all know, VAT is required from the first day now to sell in the UK and yearly corporation tax has also increased from 19% to 25% on UK Ltd.
In this case, is it recommended to go with US LLC to create a seller account on Amazon and then expand to Europe Markets? (US has many tax free states)
Can we expand to the Europe Market easily on an US LLC based account and get VAT in UK and Germany and which additional documents and verifications Amazon required for this??
If anyone has experience, please share your honest opinions on this.
Company formation documents/EIN/passport and bank account. I am using one service recommended by Amazon. It takes up to 12 weeks to get a German VAT number. You will need a VAT number for every country you will keep stock in (eg if you only want to fulfill your orders from an Amazon warehouse in Germany you only need an Amazon VAT. If you want (or Amazon moves your products to) to store also in France you also need a french VAT code and so on. Start with your company in USA and get an EIN and a bank account, that alone will take about 2 weeks and then go from there.
Yes, that is possible. I have for my US LLC a German VAT number. Nothing special. The EIN the company formation document. I believe that’s it.
Thanks for your suggestion. Can you please tell me which additional documents and verifications Amazon required when we open Europe Market on a US LLC based Amazon account??
And can we open the Europe Market on the same US LLC based account or do we need to sign up for a new account on Amazon Europe Site on US LLC details??
You better consult with an attorney, pretty sure your country has laws regarding money laundering /tax evasion, like the USA has. What you are planning to do is not legal in the USA.
Just your incorporation documents (articles of incorporation and EIN number from IRS). You can sell in Europe with this LLC although you will have to fill and send a letter of authorization which for some strange reasons doesn’t work on the UK marketplace but is perfect for the EU. Remember the VAT, speak to a consultant if you’re based outside EU. Amazon has a list (that of course if you plan to stock in the EU), if not customers will pay import taxes + their local VAT, i dunno the trick since I am EU based but I guess Amazon charges them at the time of the purchase so the price the customers see is the final price. This you have to check also. Give them a call.
Perfect, How did you pass the KYC verification when expanding to Uk or EU Market. Amazon asked for the US Business Address verification documents like utility bill or physical bank account statement as they’re not accepting wise or online banks anymore. So, how did you pass such verification??
I have attached the email screenshot below.
I passed with Mercury account. They did not ask for anything else
I already have a US LLC and seller account on those details but I want to sell in the UK and Germany.
In this case, should I expand to EU/UK markets on that LLC and get UK/German VAT.
Or should I register a separate company in the UK I mean Ltd to sell in the UK and Germany?
And in the UK Ltd based account, amazon still asks for the business address verification documents and to submit a utility bill or physical bank account statement as they ask on USA LLC??
You do not need to have VAT to start selling in the UK. You need it before you reach 15,000 pounds in disbursements. And yes with US LLC you can start in UK. Not in Germany. You cannot start in Germany directly without German VAT and packaging certificate.
But you can use Pan European FBA and then all you have in UK will be sellable in Germany, France, Spain and Italy.