We are a UK based business and selling EU wide on Amazon’s Pan-European and we are getting pain in GBP into our UK bank account for sales made in the EU sites. In order to avoid losing money when EUR are converted over to GBP for disbursements we have opened a EUR account using TransferWise that has an address in Germany.
Is it going to cause problems when we change the payment info to point to our new EUR account in the EU Amazon sites? Also do we continue paying taxes (not VAT) to UK for the sales made in the EU sites even if Amazon disburse the funds to an account that has address in Germany?
Changing the payment information to point to your new EUR account on the EU Amazon sites should not cause any major problems. Amazon allows sellers to update their payment details, including the bank account information, to ensure smooth disbursements. However, it is always a good idea to review Amazon’s seller policies and guidelines specific to your situation or consult with Amazon Seller Support for any specific requirements or potential issues that may arise.
Regarding taxes, I am not a tax professional, but I can provide some general information. Tax obligations can vary depending on the specific circumstances and applicable laws. In the case of selling EU-wide on Amazon’s Pan-European program, you may be subject to VAT obligations in each EU country where you make sales. You should register for VAT in the relevant EU countries and comply with their tax regulations. This typically involves charging VAT on sales, filing VAT returns, and remitting the collected VAT to the respective tax authorities.
In terms of income taxes, the tax jurisdiction for your business will depend on various factors, such as your business structure, residence, and where your business activities are conducted. If your business is based in the UK and you are considered a UK tax resident, you may generally be liable for income taxes in the UK on the profits generated from your EU sales. However, tax treaties and agreements between the UK and individual EU countries may impact the tax treatment. It’s advisable to consult with a tax professional who specializes in international tax matters to understand your specific obligations and ensure compliance with the relevant tax laws.
Remember that tax regulations can be complex and subject to change, so it’s crucial to seek professional advice and stay updated on the latest requirements and guidelines from tax authorities in both the UK and the EU.