I have recently just started a small accounting firm. VAT, Annual Accounts, Bookkeeeping services etc.
I have been approached by a potential client who needs VAT and Accounting services for a number of Amazon sellers who are based in Europe and sell their products to the UK and other EU countries through FBA centres.
My questions are:
1. The clients make sales in various EU countries; am I correct in that they would need to pay VAT in the UK on all their EU sales only if they have one FBA centre in UK and distribute to the EU from that one centre? If they have FBA centres in the other EU countries, these sales are completely ignored for HMRC and UK VAT purposes?
2. For accounting purposes, will they be required to submit tax returns (individual or company)? They live in the EU and only sell products in UK so I am confident they only need to register and pay VAT? They would only need to if they are a UK based business/amazon seller?
3. If the client wanted bookkeeping and see profitability, (using Xero as an example), would I need a separate Xero account for each country goods are sold if they have separate FBA centres? Or can all markets (Amazon UK, Amazon FR etc) be pulled into the one Xero? I would assume Xero would be used for nothing more than seeing the P&L and not for compliance/VAT/Tax purposes so one Xero is sufficient?
Apologies if these are silly questions, the area is very complex and i'm getting it wrapped around my head! This is possibly beyond my remit so I may have no choice but to pass on the client. But is there any material (qualifcations or otherwise) that go into EU VAT Rules and Online selling that would be relevant to this field? Whilst it may currently be beyond my remit I would like to learn more and gain the knowledge for the future.
Thanks in advance