What does Amazon European VAT mean? In what situations does Amazon need to register VAT?

As long as you open a store on Amazon Europe, you will inevitably be involved in VAT-related issues, and all merchants who open stores need to register VAT and declare it in a timely manner, otherwise it will definitely affect the operation of the store. So what does Amazon Europe VAT mean? Next, we will explain this aspect to you.

Amazon's European VAT is equivalent to my country's VAT. The VAT rate in each country is different. The lowest tax rate is in Germany, which is only 19%, and the highest tax rate is in Poland, which is 23%. Even the tax rate declaration cycle is different in each country. Germany's VAT is declared once a month, and the report needs to be completed on the 10th, while the UK's VAT needs to be declared once every three months.

In what situations does Amazon require VAT registration?

1. Sellers from EU member states with annual sales exceeding 81,000.

2. Sellers from non-EU member states and Chinese sellers using EU warehouses must register for VAT and pay it as required. (Even if the overseas warehousing service you use is provided by a third-party logistics company and you have never opened an office in an EU country or hired local employees, you still need to pay VAT.)

3. Direct mail sellers from China with cumulative sales exceeding £70,000 in 12 months are required to register for VAT and declare and pay sales tax in accordance with regulations.

Consequences of not registering for VAT:

1. Export goods cannot enjoy import VAT refund.

2. The goods may be detained and unable to clear customs.

3. Failure to provide valid VAT invoices reduces the turnover rate and preferential rate of overseas customers.

4. Normal sales on the e-commerce platform cannot be guaranteed.

In any case, merchants who open stores on Amazon must handle tax-related issues. If the platform requires VAT registration, it must be registered, otherwise the merchant will bear the consequences of not registering! Finally, I hope this article can help everyone!