by Jay Redman | Feb 4, 2021 | UK Updates
What is Fiscal Representation?
A fiscal representative is a legal body acting on your behalf taking care of your administrative obligations, managing your VAT and dealing with the Tax Authorities.
It allows non-EU companies to be able to trade in countries where fiscal representation is mandatory.
If you do not meet the requirements of that specific country, not only you but your representative will be held equally responsible for your liabilities. There must be only one representative acting on your behalf.
When you would need a Fiscal Representation?
When you initially make the plan to start selling, importing and using warehouse facilities in the EU, you must ensure that you have appointed your Fiscal Representative. If you were to voluntarily appoint an FR there could be many mutual benefits to take advantage of.
Benefits of appointing a Fiscal Representative:
The Fiscal Representative will take care of registering your company for VAT, submitting your monthly/quarterly VAT filings (depending on the country’s requirements) and calculating the VAT due to the authorities.
This takes away the pain of having to complete this on your own, which can be challenging for communication if you do not speak the language of the country in which you are selling your products.
Your VAT concerns can be solved easily, contact Sterlinx Global today for precise tax solutions.
by Jay Redman | Feb 2, 2021 | European VAT
How VAT works in the EU Marketplaces
Each country within the EU has set its specific rate of VAT. By law, this rate only has to be higher than 15%, or 5% for specific goods and services which qualify for the reduced rate.
As VAT does not always apply to some products, when showing the price on your product you should always state whether the price is inclusive or exclusive of VAT.
The difference in Selling B2B vs B2C
The way in which VAT applies in the EU depends on what products or services you are selling, and to whom, with a clear distinction between selling B2B and B2C.
If you are selling goods B2B, then the question of whether you should charge VAT depends on whether the customer has an EU VAT number. If they do then it is not required for you to charge VAT, and if they don’t have a VAT number then you must apply your country’s VAT to the sale.
If you are selling goods B2C, then you must register your business in the country where your customer is and apply the VAT rate for that country onto the sale.
For example, if you are selling on Amazon.de you will apply the current VAT rate of 16% (until 31st December when it returns back to 19% in January 2021). If your sales do not exceed the threshold in that particular country, then you are not required to register in that country.
So now here is where things change slightly. If you are selling services B2B, you are not required to charge VAT as it is already paid by the customer at their own country’s rate and then later deducted through their VAT returns.
If you are selling services B2C then you are required to apply the VAT depending on the rate for your country. There are some exceptions which are taxed based on the rate of VAT in the customer’s country.
Registering for VAT in the UK
If you are selling and storing your goods in the UK and your annual income sales exceed the threshold of £84,000, then you are required to register for VAT. Alternatively, you can voluntarily register for VAT no matter what your sales turnover is—trust me, this has its benefits!
EU VAT Registration
If you are selling in any country within the EU, you will be required to register for VAT if your annual sales total exceeds the threshold limit for that particular country.
If you are storing your goods in another country within the EU then you are automatically obliged to register for VAT in that country.
If you’re shipping products to the EU from outside, you’ll also need a European Operator Identifier Number (EORI). This, along with your VRN, identifies shipments and lets you reclaim VAT paid at customs.
Failure to oblige and pay VAT in Europe can result in penalty fees, and investigations into your business, and you could even potentially lose the rights to having an Amazon or eBay seller account.
So to save yourself the headache, you must ensure that you are VAT compliant in whichever country you plan on selling and storing your products.
How Sterlinx can help
At Sterlinx, we have a vast growing list of countries which we can complete VAT compliance services for. All of this information can be a bit daunting sometimes, so let us professionals handle it!
If you are thinking of expanding your business into the EU and require VAT registration and submission services, get in touch by visiting Sterlinx Global and set up your free consultation today. We would love to have you onboard and see your business grow and thrive into the EU!
by Jay Redman | Jan 28, 2021 | E-Commerce
If you are new to Amazon selling, you may wonder how people build full-time businesses on the platform and what tools they use to achieve such success. This blog uncovers the essential Amazon seller tools that drive business growth. These tools help you make informed decisions about product listings, pricing strategies, and competitive analysis. Here are the top Amazon seller tools that have contributed to remarkable success stories.
Top 5 Amazon Seller Tools
1. Helium 10
This comprehensive software combines multiple tools designed to grow your Amazon business. A key feature identifies important market movements and trends, enabling you to compare yourself against competitors and optimize your listings with high-ranking keywords to achieve top product rankings.
For more information, visit Helium 10 (affiliate link—include offer and code here).
2. Sellics
Similar to Helium 10, Sellics offers built-in Amazon SEO functionality that allows you to research keywords and improve your listings. The platform continuously expands its features to deliver better results for Amazon sellers.
One standout feature is the Amazon Seller Dashboard, which tracks your “True Profit” in real time. This proves invaluable for busy business owners managing packed schedules on the go.
3. Feedback Whiz
Feedback Whiz features cutting-edge tools designed for straightforward use.
An important tool helps you build a strong email sequence guaranteed to reach your target audience. With custom templates, you can easily create the perfect sequence tailored to your business model.
4. PPC Scope
If your ad campaigns generate poor feedback, PPC Scope offers tools to make your campaigns more profitable.
Equipped with top optimization filters, PPC Scope delivers superior campaign results and guarantees success.
5. Manage by Stats
This proven software has helped thousands of Amazon sellers manage business status, sales, and scheduling systems. It maximizes your profits and growth as an Amazon business.
These tools collectively provide Amazon sellers a better path to success, whether you are selecting a star product, determining pricing, optimizing keyword listings, or tracking your business performance on the go. Explore these platforms and discover your Amazon seller success today.
If you need help managing your Amazon business effectively, contact us at Sterlinx Global and let us help you succeed.
by Jay Redman | Jan 26, 2021 | E-Commerce
Top Marketplaces as alternatives to Amazon and eBay
1 – Rakuten
Rakuten is a Japanese eCommerce and online retailing company based in Tokyo. Selling your products and placing your business on the largest online marketplace in Japan is a good choice to expand your multi-channel strategy to Japan, and also the rest of the world.
Rakuten has become the third marketplace in the world with the highest global profits volume (about 17 billion dollars per year), after Amazon and eBay. Just bare in mind that there is a fee to maintain your seller account.
2 – Etsy
Etsy, more commonly used in the world of freelancers and creatives who sell vintage items, produce handmade goods, arts and crafts.
This platform is a little different from the likes of Amazon or eBay, as it works to connect the buyer with a seller. All products on Etsy are sold by independent sellers who manage their own orders and stock inventory.
You could say, it works on a first come first serve basis, as most if not all the products on this platform are unique.
3 – Shopify
As well as acting as a marketplace, Shopify has a subscription to their software service which enables a seller to sell, ship, and manage their products.
Shopify allows anyone to set up an online store and sell their products. While Shopify is a commerce platform, it is very different from Amazon or eBay, as it doesn’t sell goods to consumers, instead, it allows small-business owners to start and run their eCommerce platform in a much smoother process by providing tools to sustain a business online.
4 – Fnac
Fnac is a French retailer of technology and media products. It is the 3rd largest and most visited marketplace in France.
This is a great platform to be able to optimise your presence in Europe and increase the efficiency of your business. If your product line consists of home appliances, DIY or high tech products – Fnac is for you!
5 – Bonanza
If you are new to the eCommerce world and want to start off small without being put down by all of the fees that end up coming with selling on most marketplaces, then look no further!
Bonanza is a leading marketplace that has a policy of not making money until you make money. It is the perfect incentive for a start up company to be able to sell their products and not worry about extra fees.
There are no listing charges, no monthly store charges, and no other hidden costs. There is a whole other world out there when it comes to eCommerce and marketplaces. You just need to find the right platform that suits your business.
I hope this blog gives you some insight into just a handful of other marketplaces you can sell your products on.
How Sterlinx can help you
Many of these marketplaces require you to be VAT Compliant, which is where we come in. Get in touch with us at Sterlinx Global today and book a consultation to discuss your business and options further. Alternatively, drop us a message on our live chat! We look forward to growing in business with you.
by Jay Redman | Jan 21, 2021 | Business
Why People Fail In Amazon: Things you need to focus on
Starting a business can be daunting and comes with its challenges. Understanding why people fail in Amazon business can help you build confidence and inform your future steps to avoid common pitfalls. The question is: are you willing to take the risk?
Starting on Amazon may seem straightforward in some respects, but there are rules and regulations you must follow to ensure compliance with Amazon’s strict seller guidelines.
This guide addresses the most common problems faced by startup Amazon sellers and provides tips to help you avoid these mistakes and achieve success on the platform.
Setting up your Amazon account
Account setup is one of the most important elements to get right from the beginning. It is crucial that you establish the correct foundation for your online store and product listings to avoid failure before you have even started.
You should always stay informed about what constitutes an excellent Amazon seller account to help keep your account optimized and performing well.
Selecting the right product to sell
Selecting the right product is just as important as your account setup. Without completing thorough research on your product, even excellent PPC or marketing strategies will not result in an Amazon success story.
When conducting product research, always consider the following factors:
- What is the demand for this product?
- Work out your profit margin
- Are there other similar products already on the market? If so, what makes your product unique?
- How easily can you have your product manufactured?
By answering these questions thoroughly, you significantly increase your chances of becoming a successful Amazon seller.
Check before you sell
One major error that many Amazon sellers have made is failing to inspect goods before paying the full amount to their supplier. You must inspect your products before completing payment.
It can be challenging when buying from an unknown supplier and paying a substantial amount of money to produce a product that meets your standards and your customers’ expectations.
When your supplier fails to meet your product specifications, you risk receiving poor reviews on your Amazon seller page, which can damage your reputation. Always verify that products meet your standards before completing full payment to your supplier.
Customer care is key
Another critical priority is customer service. This is a vital part of your Amazon business for several reasons.
Amazon thrives on positive customer feedback, and it is essential to keep customers happy while remaining professional. The speed of product shipment, your reviews, and your pricing are all factors you must carefully manage to create a successful Amazon platform.
Implementing a system to ensure your customer care is consistently excellent will boost your customer service metrics and improve your seller feedback management. Although you can create your own returns policy, you must also align it with Amazon’s returns policy and strictly adhere to it to avoid breaching Amazon’s terms.
At Sterlinx, we are uniquely positioned to help, as we have an in-house Amazon specialist with over 12 years of experience as an Amazon FBA seller.
If you need guidance on setting up your Amazon account for success, contact us through Sterlinx Global and book a consultation. We can advise you on how to grow your eCommerce platform.
