Amazon’s PAN-EU process offers retailers the opportunity to increase their sales potential by opening up a market with other potential users. In this guest article by Mr. Jonas Monschein, tax consultant and managing director of Monschein Steuerberatung GmbH, what exactly is behind the procedure and what needs to be considered in particular from a sales tax perspective is briefly explained.
What is PAN-EU procedure?
The PAN-EU procedure means pan-European shipping by Amazon. This gives Amazon retailers the opportunity to store in different European countries and to sell and ship their products from there. This means lower logistics costs and faster shipping from the local warehouse.
In addition to the warehouse in Germany, there are seven other warehouses in various European countries. Amazon takes care of the logistics, storage, shipping and returns.
Impact on sales tax
You need a separate VAT number for each country where you have a warehouse.
In addition, you must register for tax purposes in the respective country. This means that you will be liable for tax in the EU country and have to submit monthly or quarterly sales tax advance returns.
Another important point is compliance with the One-Stop-Shop (OSS) process. Cross-border trade within the EU has had to be reported separately since July 1st, 2021. If you also sell your products via an Amazon warehouse, then the OSS procedure applies, which means that you must report your sales to the Federal Central Tax Office.
In the event of non-compliance or incorrect implementation, high fines will be imposed and the sales must be reported and taxed for each country afterwards. For this reason, a tax consultant is needed who is well versed in the area of e-commerce and Amazon and who takes care of all tax obligations in the EU countries.
With the help of software solutions such as CountX, Taxdoo, Dutypay or Amainvoice, tax registration and processing in all EU countries is made easier.
Conclusion
There are many special features that you have to take into account with the PAN-EU procedure. It is important that you take care of tax matters in good time so that possible problems can be avoided in advance.
If you have any questions about warehouses, VAT registration or the PAN-EU procedure, please do not hesitate to contact us us.
Tip for clients of the IT law firm:
Our partner Monschein Steuerberatung offers clients of the IT law firm special conditions:
Our clients receive a free software check and an interface facility for accounting worth €1,000 as soon as the tax consultant contract has been signed and cooperation between Monschein Steuerberatung and the new client begins.
Interested parties please give here when filling out the contact form at a suitable place that you have become aware of our partner through the partner network of the IT law firm.
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Author:
Guest author Jonas Monschein, tax consultant
Managing Director