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The VAT liability if selling to consumers through Amazon.
A business client exports china-type ware into the EU usually as a B2C (business to consumer) supply. The business is VAT registered in the UK and 20% UK VAT is duly charged to EU customers.
Normally the distance selling rule limits would cover the business and it would not have to register for VAT in each EU country to which it exports. However this company sells through Amazon and because the charges are less this way the client’s goods are held in Amazon’s stocks in various warehouses in each EU country. In other words the goods leave the UK before a customer has been found. The problem is that this method of trading appears to mean that the distance selling rules are no longer relevant. Note that Amazon never takes ownership of the goods.
The absurdity is that if say £2 500...
