Amazon Warehouses Trigger VAT Obligations Across Europe
A company that had grown rapidly during the COVID pandemic found itself in a VAT nightmare when it signed up for Amazon's Pan-European FBA program. The move allowed Amazon to store their stock in EU warehouses, but this triggered VAT registration obligations in every country where the stock was held.
The company, which had done everything right, was caught off guard by letters from tax offices stating that they had failed to register for VAT. The problem was not just with one month or one country, but with several jurisdictions and a backdated VAT exposure.
Leyton's experts helped the company to register for VAT as fast as possible, get current reporting working, and clean up everything that should have been declared months earlier. This involved long conversations with tax authorities, trying to mitigate penalties and interest.