How does Amazon collect VAT tax in Europe? How to pay VAT?

With the continuous development of cross-border e-commerce platforms, more and more people choose to engage in cross-border e-commerce. Amazon is a very popular platform among them. However, cross-border e-commerce will definitely involve tax issues. How does Amazon collect European VAT tax? Next we will explain this aspect to you.

There are three VAT rates: 20% standard rate (applicable to most goods and services); 5% low rate (such as household electricity or gasoline); 0% rate (applicable to very special cases). The actual VAT that the seller needs to pay = sales tax VAT - import VAT (IMPORTVAT).

Import VAT = (declared value of goods + first-leg freight + tariff) × 20% (import VAT sellers can apply for a refund). Usually, sales tax VAT refers to the after-sales tax that must be paid after the goods are sold. The VAT rates charged for different categories of products are also different. Most categories of products are calculated at the standard VAT rate of 20%. In the EU market, the general sales tax VAT is borne by the customer, that is: sales tax VAT = product price (price before tax) × 20% (this is borne by the customer). It should be noted that the VAT number is unique, and the overseas warehousing service company you use cannot pay the VAT on your behalf, and you cannot use the VAT number of the overseas warehousing service company or other individuals as your own VAT account.

How to pay VAT?

After registering for a VAT tax number, there are two ways to apply for tax refund (import VAT) and tax payment (sales tax VAT): self-declaration using the official online operating system of the UK tax department; or designating a regular accountant to act on your behalf.

Since European tax declaration requires very professional tax knowledge and foreign language skills, we recommend that customers entrust professional accountants to help you with tax declaration. Note: After the VAT tax number application is approved, please be sure to file a tax return once a quarter to avoid the VAT tax number being frozen by the government. If the customer does not file a VAT tax return in accordance with the law, the VAT tax number will be frozen or other legal liabilities will be borne by the customer.

In short, when filing tax returns, merchants must follow the prescribed flow, do not delay, make mistakes or make false declarations, otherwise if they are found out, they will be fined at the least, or even closed! Finally, I hope this article can help you!