Send inventory In Uk FBA from EU country

Sell On Amazon
1

Hello,

How do you send products in stock to FBA UK from an EU country?

Until now we used FEDEX, which required us to upload an invoice to their portal (a DDP invoice - Direct duty paid - to our UK VAT code) through which they calculated our VAT in UK customs, which we paid through Fedex services.

Then our products reached the UK market and were cleared through the FBA program.
Considering that Amazon UK withholds and then remits the VAT to HMRC, the accounting company recovered the VAT initially paid in customs, which is correct.

Until now everything has been correct, but for some time now all invoices sent via Fedex to Amazon FBA have been passed by the customs authority as income, even if we only took the products into Amazon’s custody.
Now we have to pay tax on both the income generated by the custody invoices and the actual sales on Amazon, so we pay income tax twice for the same products. It’s total madness, no one knows how to process it correctly.

How do you do this export from EU to UK FBA?

Thank you

2

Hello @EuroTradeCenter,

thank you for posting here. Although I am not doing FBA in the UK, I believe there has been a recent change, along with all the related UK establishment matters.

If you are EU-based and not UK-based, then you normally wouldn’t be eligible for the import VAT refund.

Here you can review HMRC’s interpretation of the recent VAT legislation on excise duty:

Maybe this will also help: Should we pay these charges?

It would be the best to consult an accountant, however, if you are already using both FedEx and an accounting company, it means that you would no longer get the duties reversed.

3

Thank you

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