Amazon VAT: Avalara alternatives?

As an e-seller on Amazon, you probably know that Avalara’s tax representation services will no longer be available from November 1, 2024. E-sellers who depend on Avalara’s services to manage their VAT must choose a new fiscal representative. What are the key elements to consider: ; what criteria should you keep in mind when choosing a partner to handle your VAT compliance securely and smoothly?

VAT compliance for e-sellers on Amazon

VAT management for e-merchants involves various complications with regard to customs and intra-Community VAT regulations: storage in several countries, dropshipping, management of domestic operations from remote stocks to professionals, triangular sales...
Entrusting the VAT management of an e-commerce store to a tax representative is virtually mandatory to ensure compliance.
Despite the simplification introduced by the Guichet unique introduced in July 2021, the obligations VAT remain complex for e-tailers taking advantage of Amazon’s storage solutions.

Amazon suggests partners who offer tax representation services at very attractive rates, with easy subscription. However, there is another side to the picture : they are standardized services, with no customization or point of contact to take into account each individual specification – unfortunately, specific situations are numerous even after the implementation of the OSS within the EU for e-commerce businesses, and there are many such needs in e-commerce.

In case of non-compliance, VAT risks are significant for Amazon e-sellers, with potential tax adjustments over several years that could lead to payment of VAT resulting in margin loss for businesses or even loss-making sales.

4 criteria to choose a tax representative for your Amazon business

1. Expertise : to ensure reliable follow-up, analysis of specific features of each of your transactions, and ongoing monitoring to anticipate changes affecting your business in each of the countries where you are VAT registered ;
2. Geographical coverage: to ensure full compliance in every country where you operate or store goods, while offering the convenience of a single point of contact.
3. High-volume connectivity and automation: to help you manage your transactions, collect data to meet your reporting obligations and deadlines.
4. Responsiveness: to provide expert answers and manage emergencies as they arise.

EASYTAX and Taxdoo: digital VAT solution for your Amazon business

VAT specialists and tech experts have joined forces to offer an integrated solution specially designed for Amazon e-sellers. This partnership provides the most efficient alternative to Avalara, with Taxdoo’s automated management and EASYTAX’s reliable VAT expertise.

• The software Taxdoo software offers a modern, comprehensive and viable alternative.
  Providing a fully automated automated solution solution for managing your VAT, this platform provides tracking of your operations.
  Taxdoo automates the collection and analysis of your transactions – a time-saving for your business.
• For more than 20 years, EASYTAX has been ensuring tax compliance of nearly 5,000 clients. EASYTAX experts keep a close watch on regulations to anticipate the most complex developments and issues affecting these clients in 27 EU – Member States and beyong. A dedicated team manages VAT registrations and VAT returns for e-sellers using Taxdoo software, and ensures your tax returns are filed on time. EASYTAX taxes care of all correspondence received from the authorities, and is in direct contact with them to answer any questions you may have about your transactions.

The EASYTAX / Taxdoo partnership brings together human expertise and computerized automations dedicated to e-commerce, for seamless compliance even in the most complex situations. The digitalization of this offer enables customers to benefit from preferential rates for high transaction volumes.

When you opt for EASYTAX and Taxdoo’s solution, you benefit from the very best in technology and expertise:

• Seamless integration: direct Amazon connection to recover all necessary data.
• Automated VAT calculation: using advanced technologies, taking into account the rates and rules to each transaction.
• Pre-population of VAT returns: automated preparation of VAT returns to ensure full compliance.
• VAT expertise: ongoing monitoring of regulations and ERP settings to ensure your compliance and support your business expansion every stepm of the way.