Do I need to submit an EC Sales list to HMRC
Do I need to submit an EC Sales list to HMRC for my Zero Rated EC Business sales? What information needs to be included in my EC Sales list for HMRC?
The team at Link My Books are happy to provide users with technical assistance in applying tax rules to their Link My Books setup. We are not Tax Advisors and so our advice and suggestions on the application of tax rules cannot be construed as tax advice. We highly recommend that users seek advice from qualified accountants for their tax compliance.
Do I need to submit an EC Sale List to HMRC?
If you’re a VAT-registered business in the UK supplying goods and services to VAT-registered customers in an EU country, you must tell HMRC about those supplies.
From an Amazon sellers point of view this applies when you have any sales to VAT registered customers in other countries that have been dispatched from the UK.
Use an EC Sales List (ESL) to show:
- details of each of your EU customers
- the sterling value of the supplies you have made to them
- the customer’s country code
What information from Amazon do I need?
Your EC Sales List, from an Amazon prospective , is made up of two things:
- Sales to VAT registered business customers in other EU countries
- Inventory movements between EU countries
How does Link My Books help me with my EC Sales List?
The EC Inventory Movement and EC Sales reports are available in the Inventory menu:
Select the period from the dropdown shown below:
On the first tab you will see a list of your EC Sales to VAT registered business customers that have been Zero Rated by the Amazon VAT Calculation service.
The second tab shows the total inventory moved between fulfilment centres across Amazon's European network.
The figures are calculated by taking the number of items moved from or to the UK in a month and using your entered product costs to calculate the value of the import/export. Therefore you must have entered product costs for this to work.
What do I need to do each month when submitting my EC Sales List to HMRC?
HMRC need a list of all of the sales to VAT registered business customers and also all of the values of the inventory you have transferred to and from the UK from other EU countries.
This is where the third tab of the EC Sales & Inventory Movements page comes in handy.
On that tab you can download an HMRC Submission file which contains all of the information on your EC Sales and EC Inventory Movements that HMRC needs in a format ready to submit directly to them.
Do I need to do anything in terms of bookkeeping for this?
Yes! You will need to do some manual work in either Xero or QuickBooks to account for your EC Sales & Inventory Movements.
The following articles will go into more detail on this: