If you’re a cross-border seller with customers in the EU and UK, you’ve likely heard about the VAT crack-down on foreign Amazon sellers. Sellers reaching a certain threshold in sales to these markets may owe value added tax (VAT) to the local European governments.
Payoneer has made it easier than ever for sellers to settle their VAT obligations to the European authorities, and now Indian sellers can benefit, too. Payoneer customers can pay their VAT directly from their balance, with no transfer fees!
Here’s a step-by-step guide to making VAT payments from your Payoneer account if you’re in India. Note that the service is open to sellers from India selling on Amazon UK, Germany, France, Italy, Czech Republic and Poland.
- The store you are paying VAT for must be connected to Amazon Store Manager. If the store is not yet connected, this will be your first step.
For more on how to connect your store, check out this how-to.
- Send an email to VAT-IN@payoneer.com with the following info:
- VAT registration number
- Currency you need to pay VAT in (GBP or EUR)
- VAT amount to be paid
- Payment due date (your request must be received at least 5 days before the VAT due date)
- Amount and date of your next Amazon disbursement )this, too, must be at least 5 days before the VAT due date(
- Once your Amazon payment arrives, the VAT amount to be paid will be debited and sent to the relevant VAT authority.
Note that your payment should be in the currency you would like to pay VAT in and must be greater than the VAT amount.
- You will receive a VAT payment confirmation from Payoneer within 24 hours
- The remainder of your Amazon disbursement will be transferred to your bank account as usual
Do you have questions?
Head over to our VAT FAQ and you may find the answer there, or get in touch with Customer Care.