Payoneer helps sellers pay UK/EU VAT seamlessly
Value Added Tax (VAT) has become a concern for foreign sellers selling to the UK and EU markets. With the UK’s recent crack-down on foreign sellers selling on Amazon, etailers outside of Europe may be concerned with VAT laws and policies.
VAT is paid to the relevant European governments in their local currency. For example, the UK government demands that VAT payments be made to the relevant account in GBP. If you’re selling to the UK and EU markets online, you might have come across this issue:
If, for example, you are a seller located in the US, selling on Amazon.co.uk, you’d incur 3 sets of fees:
- A withdrawal fee when withdrawing the earned GBP from your Payoneer account to your bank account in USD
- An additional fee to convert the owed VAT funds back into GBP
- Wire transfer fees to wire the money to the relevant UK government account
All in all, you could end up paying 2-5% of your GBP income in fees, just to pay VAT.
No more fees, no more double conversion
Payoneer is now introducing a brand new solution for global sellers, to help them pay VAT funds in the required currency and save thousands of $$$ annually.
Payoneer will help you transfer the funds directly from your GBP / EUR account to the government collection account. For a limited time, this service is offered for free to Payoneer users.
- Super easy. No need to wire funds internationally, which can cost a lot of money and take up to 15 business days.
- It’s free. The funds will be sent directly from your GBP or EUR accounts, no need to convert currencies. The service itself is free, similar to our Make a Payment service.
- Skip the middle-man. No dealing with banks or international paperwork.
How does it work?
Don’t have enough funds in the currency you need for your VAT payments? Use our manage currencies service to transfer funds between your different Payoneer balances and ensure that you have currency you need when you need it.