Need Accountant with Experience of Online E-commerce (Ebay + Amazon)

[Work Work Work]

Hi,

I am looking for an accountant who has experience working with online sales through Ebay / Amazon / Website.

I need clear financial advise for the creation of an LLC with my business partner and wife to be. The business is currently operating as a partnership and will need moving to the LLC the most tax efficient way. The partnership still has stock in the business that will need transferring to the LLC. The LLC will need to be set up with 2 share holders and 2 directors (50 / 50).

The business has just reached the VAT threshold for UK even though my sales and purchases are all outside of EU. I will need to VAT register the business ASAP and I will need further VAT advise as I start to sell in UK & EU. (Not for at least 3 - 4 months away)

I have one more stumbling block. I still have not registered the partnership for 2015 - 2016. I have all accounts in order and well set out. I can do this for the partnership / myself & wife to be. I was holding out setting this up until I seek financial advise from an accountant as I do not want to press the go button and then realise it was not the best option if moving over to LLC.

Help is needed ASAP as with VAT looming, business still not registered I feel a little stressed that everything is not set up correctly for business purposes. Although as I am still in first year of operating I think this response is normal? Ha!!

[GlobalTaxAdviser]

Hi

There are several points to consider:

1) Structure depends on residency, level of profits, where profits generated etc. Possibly look at Limited Company.
2) If the VAT registration has been crossed as it will depend on EU Sales to Businesses/Consumers
3) VAT Distance Selling Threholds (different in each EU country)
4) Software/Accounting integration with Amazon, Ebay and website

First year of business is always difficult, its a steep learning curve but your accountant should be able to hold your hand and guide you - no need to panic yet. I suggest you find someone local to you as there is a lot of work initially to setup as well as with the initial advice. Good Luck

Kind Regards

GTA

[GlobalTaxAdviser]

Hi

There are several points to consider:

1) Structure depends on residency, level of profits, where profits generated etc. Possibly look at Limited Company.
2) If the VAT registration has been crossed as it will depend on EU Sales to Businesses/Consumers
3) VAT Distance Selling Threholds (different in each EU country)
4) Software/Accounting integration with Amazon, Ebay and website

First year of business is always difficult, its a steep learning curve but your accountant should be able to hold your hand and guide you - no need to panic yet. I suggest you find someone local to you as there is a lot of work initially to setup as well as with the initial advice. Good Luck

Kind Regards

GTA

[Work Work Work]

Hi GTA,

Great advise once again. I am looking into local accountants now (Leeds). I am going to put the EU sales on hold until the LLC and VAT registration and set up. This takes away an added complication until everything is running smoothly.

Can you answer this about VAT. If all the sales, transactions and orders took place outside of the EU but I am an a UK based business. Do I still need to register for VAT if I am above the £82000 Earnings threshold for the past year? I can register for VAT but until I start physically selling in EU there will be no VAT to declare or pay. I currently buy in China and ship direct to US.

Thank You

[GlobalTaxAdviser]

Hi

Non EU sales do not count as they are outside the scope for VAT Registration

However, if you are order from china then you would need to Pay Import VAT and to claim it back then you would need a VAT number / EORI number. HMRC will issue a C79 to claim the VAT

Kind Regards

GTA

[Work Work Work]

Hi GTA,

I am currently not importing the goods into the UK or the EU but drop shipping direct to the US from China. This means I do not currently have or need and EORI number. I will require this when I launch sales in the UK and this will be the point I register for VAT.

I am about to fill out my 2015 - 2016 self assessment tax forms. As the sales from the business were above the uk VAT registration threshold for the year. Will HMRC ask me questions about why I am not VAT registering. How do I tell them that all sales were outside of the scope for VAT?

Thank You

[ecommerce]

Hope you got things sorted out Work Work Work and congrats on the business success!

I'm in Leeds in a similar situation and looking for a local accountant who has experience with international e-commerce. Did you get an accountant? If so, would you be happy to recommend them?

Thanks,

Ed

[bd6759]

"Work work work" hasn't been active on this forum since Tue Apr 12, 2016 4:43 pm. (the day he posted his question). He is unlikely to respond.

[ecommerce]

bd6759, thank you for letting me know.