As you already know that there are different VAT compliances when you start your FBAbusiness like the need for a VAT registration. This post will focus in particular on a small but nevertheless a very important part of these compliances: the Advance VAT Return.
You must inform the tax offices about your outgoing and incoming turnovers on a regular basis (usually monthly, sometimes quarterly) and of course, if possible, you want the VAT back (=deduction of input tax). At the same time, you are obliged to declare and pay the sales tax of your sales. How to handle these tasks? With you Advance VAT Return.
These documents must be handed in to the tax authorities until the 10th of the month , for example (this point of time can differ within different countries) in Germany, which follows the registration period. If there is a VAT liability in the return, it also has to be paid until the 10th (again, this date is not standardized).
Selling on multiple Amazon marketplaces and being VAT registered in various European countries, the Advance VAT return has to be done in various countries as well.
You are a seller from Italy, your goods are stored in Poland and they were brought to Poland by your company, or by Amazon because of their FBA program. Now you have to keep in mind, even though the delivery itself is exempt from tax, it has still to be mentioned in the return documents. Not only in your Polish Advance VAT return, but also in your Italian tax return. Furthermore, you have to write an invoice for this delivery (a so-called pro forma invoice as it is no real transaction). Consequently, the input tax and the VAT in your returns in Poland will sum up to 0, that is why a real payment is not necessary. It shall rather help the Polish tax authorities to let them know that there are goods stored in Poland which will be sold in there as well.
To save time and to make this procedure easier, the Advance VAT Return can be submitted online.
Reaching certain threshold limits, you will also have to elaborate your sales to Intrastat.