Brexit FAQ: What shipping method should Amazon MFN (Merchant Fulfilled Network) Selling Partners use?

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Brexit FAQ: What shipping method should Amazon MFN (Merchant Fulfilled Network) Selling Partners use?

Your list prices on Amazon must include all taxes and duties which may be payable to receive your products. The rate will vary depending on the type and value of the products. Many express carriers offer delivery services which enable you to pay any import duties or VAT in advance of the customer receiving the delivery. These services may be described as ‘delivered duty paid’ or ‘duties and taxes paid’ or incoterms DDP.

Goods delivered to customers in the UK – from January 1, 2021, if the value of your product is:

  • Below 135 GBP: you can choose your ship method. Pursuant to the UK VAT on E-commerce law, Amazon will collect and remit VAT directly to the UK tax authorities.
  • Above 135 GBP: you must ensure that any required taxes and duties are paid in advance of the customer receiving the item (for example, by using a ‘delivered duty paid’ or ‘duties and taxes paid’ service – incoterms DDP).

Goods delivered to customers in the EU

  • After January 1, 2021, if the value of your product is above ‎22 EUR, you must ensure that any required taxes and duties are paid in advance of the customer receiving the item e.g. by using a ‘delivered duty paid’ or ‘duties and taxes paid’ service (incoterms DDP).

It is your responsibility to discuss with your carrier how duties and taxes will be paid and to choose shipping methods that ensure that customers are not exposed to such payments or delays upon delivery of the goods. Please note that having buyers pay duties is in violation of the Amazon Marketplace policies and can lead to the suspension of your seller account. Contact your carrier to discuss your options regarding the payment of duties.

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