How to zero rate for VAT, US orders Fulfilled by Amazon US?


#1

TL;DR: AZ seller in European Union who pays VAT to local tax authorities for orders sold within the union, and zero rates for orders shipped outside the union (USA), via an IE599 from FedEx with the invoice number on… How to use FBA and still be able to zero rate sales? There will be no IE599, as each order will be shipped individually by Amazon, and I will not be selling the bulk boxes of stock to Amazon, so will not get IE599’s from those boxes.

I am in Europe and sell on here on US AZ. Have always been FBM and been fine with it, we recently did some maths after looking an old Amazon reachout about going FBA, they had a MASSIVE push on that a while back, long story (reasonably) short, we actually think we would be better off. I don’t know why we ever didn’t think that shipping one box wouldn’t be cheaper than shipping 10 individual boxes, but there you go.

The question is, we can get boxes from here to them - we even talked to FedEx about doing it through them, and have the logistics and rates side of that pretty sorted. We have one remaining issue to resolve.

We are VAT registered here, and in order to zero rate our sales, we have to prove that the goods were shipped outside the union, this is done by getting an IE599 from FedEx which links to the invoice number etc.

When shipping to FBA, there is no sale, we are just moving stock from a to b, so no IE599 on that box, no proof we moved stock out of the country.

How do we then show the revenue service here in Europe, that sale 1234 was made to person ABC in the USA?

The sale won’t have proof because it didn’t include a shipment out to the buyer - because Amazon shipped it from in country.

I know this is super complicated and probably needlessly so, I just wondered if anyone here also is from the EU, and is VAT registered, and how they handle this situation.Yes I’ve tried asking accountants, but I just get blank looks.

There must be a way. Im posting here in the last vain hope that someone can poke someone who would know. Even Mods if AZ could help somehow.

All the best and TIA.

Jeez. I didn’t realise it was this long.