The topic of taxes concerns or worries many retailers who want to start with Amazon FBA. Mistakes can have major consequences, from high back payments to investigations, and can be really expensive. In our Amazon FBA Masterclass, we therefore recommend that you consult with a tax advisor in good time. We will explain here what you should pay attention to when choosing an FBA tax advisor.
Why you should use an FBA tax advisor
In addition to the already mentioned effects that mistakes can have in tax matters, there are other good reasons for working with an Amazon FBA tax advisor. According to Abbreviationfinder, FBA stands for Fulfillment by Amazon.
- Comprehensive advice: There are numerous topics for which YOU have an expert at your side with a tax advisor to help you make the right decision. This starts, for example, with the choice of the type of company. A good tax advisor also always keeps an eye on tax optimization.
- Save capacity: Especially at the beginning of your Amazon FBA business, you have a lot of tasks to do. The right product needs to be found, perfect listings created and sales boosted. Having to deal with all tax matters and familiarize yourself with the complex field costs valuable resources that you can better use elsewhere.
- Individual circumstances: When it comes to tax questions, there is usually no Schedule F that you can easily follow. The type of company you choose, the documents required, all of this is very individual and must be examined specifically for your company.
Amazon FBA taxes: Which ones are actually relevant?
As a rule, the following taxes apply to your Amazon FBA business:
- value added tax
- Income tax
- Trade tax
- Corporate tax
- Import sales tax (when importing goods into Germany)
What distinguishes FBA tax advisors from “conventional” tax advisors?
In this text we have always talked about Amazon FBA tax advisors and there is a reason for that. We recommend that you look for a tax advisor who is familiar with Amazon FBA and has expertise in e-commerce. This is not necessarily the case with traditional tax advisors. For you, an FBA tax advisor has the advantage that he knows the special features of the FBA business – for example, the large number of bookings and returns. If you have to explain everything to your tax advisor first, you will lose important time and may not get the best result.
Amazon FBA also makes it easy for you to sell internationally on Amazon, for example on the European marketplaces in Italy, France or the Netherlands. There was a recent change in tax processing due to the one-stop shop, and your FBA tax advisor should also know about this.
How do I find the right tax advisor for my Amazon FBA business?
Our advice is: look around locally first. A simple Google search can be enough to find a tax advisor in your area who specializes in e-commerce. The local proximity has the advantage that questions can often be clarified more easily in a direct conversation than is the case digitally. Talk to the tax advisor you have shortlisted directly about your FBA plans and find out whether they have the necessary expertise.
There should also be a good relationship between you and your FBA tax advisor. You should feel comfortable and know that your business is in good hands.
How much does an Amazon FBA tax advisor cost?
The costs of an Amazon FBA tax advisor cannot be predicted across the board. They depend, for example, on the tasks that you assign to the tax advisor and also on the size of your business. If you start your FBA trade as a small business owner, the tax obligations associated with it are different than those of a larger business owner.
In summary: What should you pay attention to when choosing an Amazon FBA tax advisor?
The most important points about your Amazon FBA tax advisor at a glance:
- Working with an FBA tax advisor is definitely recommended
- The law firm or tax advisor should specialize in e-commerce or digital business models
- Use a free initial consultation to get to know each other and to clarify whether FBA know-how is available and whether the collaboration is a good fit
- Interpersonal relationships also have to be right
- A local tax advisor is ideal; alternatively, we can recommend tax advice for e-commerce from “ Fynax ”, with whom we have worked together ourselves