The ‘Amazon Brexit Bible‘ is where you will find the latest Amazon Brexit FAQ updates. If you’re shipping cross border you should check back regularly to ensure you have the latest updates.
Will my account health metrics be impacted if there are issues at the border that are outside of my control?
To support you following the end of the Brexit transition period, Amazon will be temporarily relaxing the thresholds for late shipment, cancellation and order defect rates starting on the 1st of January, to be reviewed again on the 31st of January 2021.
Amazon say that they understand the adjustments to your business and new customs borders may have an impact on your order performance while you adapt to the new environment. As part of their commitment to your success in selling on Amazon, Amazon will be monitoring any issues that arise due to Brexit and will work to ensure a smooth transition for you and your customers. During this adjustment period, you are encouraged to continue monitoring the Account Health Dashboard in Seller Central to remain above our usual target rates.
What shipping method should MFN Selling Partners use?
Your list prices must include all taxes and duties which may be payable to receive your products.
This is really important – whether you ship to the UK or the EU the price you quote has to be inclusive of tax and duty and this includes the requirement to deliver duty paid.
It appears some sellers weren’t aware of the requirement to deliver duty paid, or perhaps weren’t aware that their products would attract duty when crossing the UK-EU border, hence the reminder in the latest Amazon Brexit FAQ updates.
The duty rate will vary depending on the type and value of the products. Many express carriers offer delivery services which enable you to pay any import duties or VAT in advance of the customer receiving the delivery. These services may be described as ‘delivered duty paid’ or ‘duties and taxes paid’. Royal Mail offers this service but it will cost around a tenner per parcel.
Goods delivered to customers in the UK
From January 1, 2021, if the value of your product is:
- Below £135
You can choose your ship method. Pursuant to the UK VAT on ecommerce law, Amazon will collect and remit VAT directly to the UK tax authorities (except for UK merchants).
- Above £135
You must ensure that any required taxes and duties are paid in advance of the customer receiving the item (For example, by using a ‘delivered duty paid’ or ‘duties and taxes paid’ service).
Goods delivered to customers in the EU
After the 1st of January 2021, if the value of your product is above €22, you must ensure that any required taxes and duties are paid in advance of the customer receiving the item e.g. by using a ‘delivered duty paid’ or ‘duties and taxes paid’ service.
It is your responsibility to discuss with your carrier how duties and taxes will be paid and to choose shipping methods that ensure that customers are not exposed to such payments or delays upon delivery of the goods. Having buyers pay duties is in violation of the Amazon Marketplace policies and can lead to the suspension of your seller account. You will need to contact your carrier to discuss your options regarding the payment of duties.
Webinar: Gearing up for success post-Peak, Brexit & COVID
On the 27th of January at 11am, Tamebay are partnering with GFS to bring you a post-Peak, Brexit & COVID which will examine what you need to do to prepare your delivery strategy for 2021. We are already hearing from merchants whose customers have received demands for duty when goods are delivered, so sign up for our webinar today to ensure you discover how to handle these Brexit changes.
As a bonus, attendees at the webinar will also get GFS’ 4-point Action Plan for ecommerce Delivery in 2021.
2 Responses
On the goods delivered to EU, the rules haven’t changed from 1 Jan. VAT has always been due on shipments into the Customs Union about €22. The seller must decide if they or their customer pays. This does change from 1 July 2021 when the EU VAT ecommerce package withdraws the VAT exemption of €22. Instead, sales VAT must be charged by the seller, or facilitating marketplace, on shipments not exceeding €150. Above that, and the current import VAT rules apply.
On customs duties, they are exempt up to €150 per shipment.
If I want to buy something from the UK, Amazon are now charging the VAT in their inclusive price . Fair enough they have chosen to pay the VAT, so I assume it’s being delivered DDP. However, they are charging in addition an ‘Import fees deposit’. To me under the Tariffs Agreement recently negotiated, there are no import duties payable and as Amazon has already charged the VAT, what is this additional charge all about?