For companies providing goods or services in foreign European countries, there may be a requirement to VAT register as a non-resident VAT trader. With this, under certain circumstances, the tax authorities also require the company to appoint a Fiscal Representative in the target country. This tax registered company will be the local representative of the company, managing with queries and filing obligations of the company for dealings with the tax authorities.
VAT Services on Amazon
Now manage your VAT registrations and filings across more European marketplaces
VAT Services on Amazon is now expanding and collaborating with Avalara to enable VAT compliance not only in UK, Germany and Czech Republic; but also in France, Italy, Spain and Poland (Countries requiring local Fiscal Representation).
Special Promotion
The first year of service is free* – which includes VAT registration and filings
Why sign up?
Low cost
In addition to the first year free promotion, for year- 2 you only need to pay €400 per year per country for your on-going VAT filing report submissions.
Automated VAT Filings
You benefit from online and fully automated VAT filings integrated within Seller Central for your Amazon transactions.
Customer Support
Your tax service provider will guide you step by step through your VAT Registration and once you begin your online VAT filing, you will receive dedicated customer support from Amazon.
Get started with Fiscal Representation Requiring Countries
(France, Italy, Spain and Poland)
Already working with a tax agent? You too can benefit from our ongoing promotion by signing up for VAT Filings
Frequently Asked Questions
Fiscal Representation
What is Fiscal Representation?
What is the cost of the Fiscal Representation services?
Under the promotional offer, year one for added fiscal rep countries will be free. You will need to pay €400 per year per country for the on-going VAT filing report submissions.
What does the fiscal representation service on VAT Services on Amazon cover?
The fiscal representation service on VAT Services on Amazon appoints a local fiscal representative in each country to represent you towards that local VAT authority. This fiscal representation enables you to receive the standard compliance services for registrations, filings and tax notices that is currently offered on VAT Services on Amazon. The VAT due will be paid to the tax authority on your behalf through LianLian Pay (an Avalara contracted Third-Party Payment Service Provider) and you will be notified once the amount has been paid.
This fiscal representative will be jointly and severally liable for your VAT payments.
This fiscal representative will be jointly and severally liable for your VAT payments.
Sign-up Process step by step
What should I expect to have to do during the sign-up process?
After you agree to the Terms and Conditions, background screening checks will be conducted based on Avalara’s legal and regulatory obligations and commercial considerations. Avalara’s payment services partner, LianLian Pay, may be in touch to collect additional information.
Who is LianLian Pay?
LianLian Pay is the Third-Party Payment Service Provider (PSP) engaged by Avalara to collect and remit amounts of VAT obligations due by merchant to tax authorities. They also conduct the required background screening checks.
What background screen checks will be carried out?
Avalara will perform required checks via Lianlian Pay to verify your identity, anti-money laundering checks as mandated by Anti-Money Laundering (AML) regulations and suitability checks.
What information do you need from me to complete my background screening checks?
We use some of the information you provide during the registrations process for your background screening checks.
This includes your name and mailing address, phone, email, photo ID, Business License, Company/sole trader information. Our partner may contact you for additional information.
This includes your name and mailing address, phone, email, photo ID, Business License, Company/sole trader information. Our partner may contact you for additional information.
I have passed the background checks – what happens next?
We will contact you to request completion of the registration questionnaire and provide documents (where applicable) for each country requested.
You will need to create a virtual bank account with LianLian Pay before your VAT registration can be completed. This account must be used to receive payouts from Amazon so that funds can be reserved to cover your VAT payments.
You will need to create a virtual bank account with LianLian Pay before your VAT registration can be completed. This account must be used to receive payouts from Amazon so that funds can be reserved to cover your VAT payments.
How do I set-up my LianLian Pay virtual bank account?
- Register your phone number and password
- Verify your identity
- Create your virtual bank account
- Add your virtual bank account to Amazon Seller Central
How do I create my virtual bank account?
- Choose 'Add an Account' from your LianLian Pay portal
- Select the region of your store
- Provide your Amazon Seller ID
- Your virtual bank account will be generated and your account number displayed
This video explains the steps that you'll need to follow to activate your account
Linking your LianLian Pay collection account to your Seller Central account
After LianLian Pay provides you with a virtual bank account, you will need to link this LianLian Pay account to your Seller Central account for countries requiring fiscal representation. Learn how to add your account in Seller Central
Registration Process
What will be the process for VAT registration and how will I be on-boarded for Filings on VAT Services on Amazon?
- For the VAT number application, Avalara team will contact you to request completion of the registration questionnaire and provide documents (where applicable) for each country requested.
- Post documents verification, the application will be submitted to Tax Office to get the VAT registration Number
- Once the VAT number is generated, Avalara team will confirm the receipt of the VAT number and you will be on-boarded for Online Filings on VAT services on Amazon.
VAT Liability Payment
Can I use a different payments service provider other than LianLian Pay?
The Avalara fiscal representation service can only be supported using LianLian Pay.
How do you calculate how much to reserve to cover my VAT future obligations?
As your sales transactions occur on Amazon during the month, 25% of the proceeds you draw from your Amazon marketplace will be reserved for VAT payments by LianLian Pay into a VAT reserve account.
What happens if the reserved VAT amounts are not enough to cover my VAT liability?
Our PSP partner LianLian Pay will notify you if there is insufficient amount reserved to cover your VAT liability so that you can fund the shortfall.
How do I pay my VAT?
The VAT due will be paid to the tax authority on your behalf by LianLian Pay and you will be notified once the amount has been paid. LianLian Pay will only execute the payment to the VAT Authorities if you have sufficient funds in your VAT reserves account to pay the VAT liability in full.
How does the monthly payments process work alongside the filings process?
- VAT reserve during the month
As your sales transactions occur on Amazon during the month, 25% of the proceeds you draw from your Amazon marketplace will be reserved for VAT payments by LianLian Pay into a VAT reserve account. The remainder 75% will be moved to your LianLian Pay VAT payment account before the sales proceeds are paid to your collections account.
- Review transactions and view return filings
Review data and edit for all jurisdictions on the program from the 4th of the month.
- Make your VAT payment
After the transaction period ends, any difference between the period VAT liability and the reserved VAT amount must be paid by 14th of the following month. LianLian Pay will notify you if additional VAT funding is required.
- Any surplus VAT amounts held after your return is submitted will be returned to you.
- VAT filing submission
Once VAT funding is received, you can view filing submission status on Amazon Seller Central.
How are surplus funds returned to me?
LianLian Pay will return surplus funds to your LLP virtual bank account.
What happens if I fund my VAT payment late?
Late or non-funding of VAT payments will result in termination of fiscal representation services within the same month that the VAT is due.
Is there anything outside of the normal process that I might need to do for Fiscal representation?
Additionally, Avalara will perform an audit check every month and ask you to provide copies of the documents that relate to your recent transactions. These must be provided by the 15th of the month. Types of documents may include:
Purchase invoices
Sales invoices/credit notes
Cross-border transfer of goods documents
Import documents
Purchase invoices
Sales invoices/credit notes
Cross-border transfer of goods documents
Import documents
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