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~ Staxxer ~

WHY TRACKING

YOUR FLOW OF

GOODS

IS ESSENTIAL FOR YOUR VAT

COMPLIANCE EXPERIENCE”

Text: Renee van Dal // Photos: Staxxer

VAT: A common obstacle for all entrepreneurs, especially for those who sell across borders.
An underestimated element to consider is your flow of goods. It is essential to have a clear
understanding of the countries where your goods are dispatched and received to ensure
compliance with VAT regulations. Not understanding the flow of your goods can result in
incorrect filings. Which, in turn, can lead to penalties.

etting the Scene whereabouts of your products at all times. Not just for your
Imagine you own a successful webshop and have been own peace of mind but also for VAT purposes. Ensure that
Sexpanding by selling internationally. With sales on your supply chain is organized and trackable, so you can
the rise, you have set your sights on entering new markets, always stay informed about the status of your goods.
including France, Germany, and Spain. To make this
happen, you have decided to leverage the power of online What is the Issue?
marketplaces, starting with Amazon. Setting up an account While enrolling in Amazon FBA eliminates the need to
on the platform was a breeze, and you don’t want to worry manage fulfilment, it is still important to monitor the flow of
about the logistics of fulfilment. That is why you have enrolled your goods. Here’s why:
in Amazon’s FBA program. This way, you can focus on further
growing your business. First, you have to ship your goods to an Amazon fulfilment
centre. For example, from the Netherlands to Germany. You
Amazon FBA & Flow of Goods have to report this flow of goods as an outbound Intra-
With your Amazon store now live alongside your webshop, Community transaction (Supply) in your VAT declaration
it is time to take the next step. That is to verify that you are in the Netherlands and as an inbound Intra-Community
still VAT compliant in all the countries you are operating. Transaction (Acquisition) in your VAT declaration in
Although Amazon FBA handles your fulfilment, they do not Germany.
monitor if you are VAT compliant. It is advisable to register
for a VAT number in advance, as the application process can After this first flow of goods, Amazon moves your goods
take up to six weeks. Once your VAT number is secured, you around Europe. This leads to more Intra-Community Supply
can then apply for Amazon FBA and start selling right away. and Intra-Community Acquisition VAT filing obligations
in the country of departure and the country of arrival,
The next important aspect to consider when using Amazon respectively. Amazon does not inform you about these
FBA is the flow of your goods. It is essential to know the movements of inventory. You still need this information for

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