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:
All in all, you could end up paying 2-5% of your GBP income in fees, just to pay VAT.
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.
It’s easy. Click here to get started. For step-by-step instructions, please see this blog post.
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.