VAT Registration & Reporting in the UK and EU for all On-line Sellers
Choosing an EU VAT Facilitator
Selecting a Competent and Responsive VAT Provider and Avoiding the Wrong Ones!
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VAT Registration and VAT Reporting are Completely Different Things
As concerns buying a VAT registration and reporting procurement and procedures, the two are nothing alike. They have nothing in common. When you get a VAT registration number it is a onetime transaction, like buying a product, not a service. On the other hand, VAT reporting is an ongoing independent service totally different from buying a VAT registration number.
Getting VAT registered is a straightforward, simple, one time process. But because it is straightforward, the Online Seller often makes the incorrect assumption that the flip side of our service, VAT reporting and filing, is also similarly straightforward. This is a misunderstanding. VAT reporting and all that goes with it is a lot more involved.
Regularly scheduled VAT reporting is a much more complex undertaking and by its very nature, it is an ongoing long term relationship between the VAT facilitator and the client. It involves regular and intense email communications with attachments between the client, our accountants and us, the VAT Facilitator, all working closely together on a monthly or quarterly basis and even annually. In every country where VAT reports will be submitted, it becomes a one on one relationship between the client the customer service VAT facilitator and an EU VAT accountant
Getting VAT registered is a straightforward, simple, one time process. But because it is straightforward, the Online Seller often makes the incorrect assumption that the flip side of our service, VAT reporting and filing, is also similarly straightforward. This is a misunderstanding. VAT reporting and all that goes with it is a lot more involved.
Regularly scheduled VAT reporting is a much more complex undertaking and by its very nature, it is an ongoing long term relationship between the VAT facilitator and the client. It involves regular and intense email communications with attachments between the client, our accountants and us, the VAT Facilitator, all working closely together on a monthly or quarterly basis and even annually. In every country where VAT reports will be submitted, it becomes a one on one relationship between the client the customer service VAT facilitator and an EU VAT accountant
Not all VAT Facilitators are Offering the Same Bundle of Services
It is important that you know that All VAT service providers do not offer the same services or quality of services. Some will give you the minimum just to get your VAT report filed, and others are full service VAT representatives for you. It is important that you know the difference. It is the only way you can correctly select a VAT facilitator that fits your specific needs. Do you want a VAT facilitator to do everything for you so you don’t have to worry about anything? Or do you want them to only file the reports and nothing else?
This is why you cannot look at price alone when choosing a VAT facilitator. You have to look at the level and type of service being offered. You can pay a smaller fee for VAT reporting, but if you do, expect to be doing the heavy lifting when problems and situation or things out of the normal course come along. And no insult intended, but you are not qualified to do this. The EU tax offices are government bureaucracies. Each country has a different language, different rules and laws, and different procedures. No one person is knowledgeable enough to handle this on their own without a professional VA accountant in each EU country. Account issues come up with every client fairly regularly. They are not rarities. In fact, you can count on the fact that there are going to be issues that you will need to get resolved down the road.
When the tax office sends you a letter in some foreign language with a tax issue that needs to be addressed, or if Amazon or your platform sends you an email threatening account freezes or blocks as a result of a notice from the tax office they got regarding your account and when the letter says there is some kind of problem with one of the tax authorities, do you want to be the one to handle this on your own or do you want the VAT expert who represents you to do it for you?
The truth is most of the low fee VAT facilitators will not carry you through when these issues and problems come up. They will do your VAT filing. They may send one email to the tax office to address an issue, and if they don’t hear back from the tax office they will probably forget you until you send a strongly worded email to remind them. They won’t make phone calls to their accountants or tax offices when it is needed and chase down the problem until it is solved. That is what a full service VAT facilitator does. It is what we do. Selecting the right VAT facilitator to prepare and file your VAT reports and handle ALL issues for you is so vitally important to you!
This kind of premium service may cost you a little bit more in fees, but you will be in tax compliance with the governments, you will avoid tax penalties and you will not have to worry because it is being handled by people who know what they are doing and who will chase the problem down for you to a satisfactory conclusion.
Keeping You in VAT Tax Compliance With VAT reporting
With VAT reporting, we provide many services to you and only one monthly or quarterly fee. But you get the idea. Scheduled VAT reporting and filing is more involved than just paying one time and then walking out the door with the VAT registration number. It is all about keeping you in VAT tax compliance - paid current and out of trouble.
The moment you choose a VAT provider, you are entering into an ongoing relationship monthly (or quarterly) that will require a lot of detailed back and forth emails. Most Amazon sellers, when they are looking for a VAT provider, don't realize nor do have a real understanding as to how regular the ongoing service works month to month or what they should be looking for or expect from a VAT provider.
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