Completing Missing Information for Your European Tax Returns

When filing your European tax returns, it’s essential to provide comprehensive details for certain transactions, particularly those involving inventory movements between warehouses. While Amazon’s VAT Transaction Report (AVTR) includes some information on inventory movements and other transactions, there are still key details missing that must be reported.

Pro tip: inventory movements are denoted with "FC_Transfer" in the TRANSACTION_TYPE field.

This article explains how to fill in the missing details, specifically focusing on:

• Commodity code - required for Intrastat reporting
• Purchase prices - required for inventory movement reporting
• VAT rates - required where tax calculations have not been performed by Amazon

Loading your inventory data

To fill in the missing information, you’ll first need to upload some data for our system to analyze. Our system will automatically identify all the unique SKUs within your data. Just follow the simple steps below. Note that if you’ve previously uploaded transaction data for VAT reporting, your inventory may already be populated so you can skip straight to step 5.

1. login to CrossTax

2. Navigate to "VAT Finetune" and click on "Upload a file".

3. Upload an AVTR file from the last 6 months.

4. Your SKUs will now be listed, allowing you to populate any missing information.

5. Data can be updated in two ways:

• One-by-one: Click the pencil icon next to each SKU and make the necessary updates.
• Bulk update: Download an Excel file, make the updates in the file, and then re-upload it.

Below we provide information on completing each field.

SKU code

This information is automatically populated based on the AVTR uploaded.

Commodity codes

If your business is required to submit Intrastat declarations—typically a requirement for large businesses involved in cross-border trade within the European Union—you will need to provide commodity codes for each SKU that you sell. These codes help categorize the goods being traded and ensure compliance with reporting requirements.

A commodity code is a standardized system used to classify goods for import/export purposes. It allows tax authorities to determine the correct duties and taxes to be applied and provides a common language for international trade. You can see the full list of commodity codes in the European database.

Commodity codes are required when you submit your Intrastat declarations to accurately report the types of goods you’re trading. These codes must be assigned to each of your SKUs (stock keeping units) for proper reporting.

You can easily assign commodity codes in the inventory page of your system. Once assigned, these codes will be automatically included in your Intrastat declarations, ensuring you meet all legal obligations. 

Description

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VAT rates

If your sales are subject to a VAT rate other than the standard rate, you can specify the correct VAT rates directly in the inventory file. VAT rates for the same product can vary across different countries, so you have the flexibility to set the VAT rate per country for each product.

While we are unable to confirm the exact VAT rates applicable to your products, the European Commission offers a helpful database of VAT rates for specific products across different EU countries. This can be a useful resource for determining the correct rates.

If you’re uncertain about which VAT rate applies, we recommend consulting with a local tax advisor for verification. We can also provide recommendations for tax advisors if needed.

Purchase prices

Purchase prices are essential for the accurate reporting of cross-border inventory movements within the Amazon network. According to VAT rules, transactions must be reported using the cost price rather than the sales price.

You can enter the purchase prices directly in the inventory file. If no purchase prices are provided, our system will estimate a proxy purchase price. This proxy is determined by identifying a sale of the same SKU and discounting the sales price by 40% (representing an approximate 20% VAT rate and 20% profit margin).

Please note, this calculation is provided for ease of use, but we do not accept responsibility for the accuracy of these values. It is your responsibility to ensure that accurate purchase prices are provided for proper VAT reporting.