How do Amazon products pay taxes? What are the taxes based on?

As an overseas platform, Amazon's every move is supervised by foreign departments, so goods also need to pay taxes on time. Of course, for many merchants, they don't know the details of Amazon's product tax payment, so they don't know how it pays taxes? Let's talk about it below.

1. Amazon product tax payment

This depends on the station you go to. The tax rates in different countries are different, so when paying taxes, you should refer to the situation in the country.

2. How to pay tax?

1. Sales tax: Known as a "sales tax," this is a simple one-time tax collected at the time of a purchase. The money goes from the consumer to the seller and then to the government: ultimately. This form of sales tax exists across the United States and is determined by state and local governments. (In the United States, there is no comprehensive national sales tax.)

Because states and local jurisdictions can decide their own rules, sales taxes in the United States are very complicated and everyone has to pay according to local requirements.

2. Tax increase: At each stage, the value of a good or service increases. This increase, the “value added,” is taxable. As a business owner, you can refund any tax increase you paid in the production chain. Only the end user can pay out of pocket.

Typically, VAT works like this: You pay VAT to other businesses that help make your products. These small amounts of VAT are called "input tax," and you'll get credit for each input tax. Every transaction made on Yahoo has the appropriate VAT rate added to the transaction. The customer pays you the tax.

At the end of the season, having collected VAT from all customers, the tax increase is ready to be sent to the government. But first, all taxes can be deducted from the total so that the money is in the pocket.

3. Goods and Services Tax: Goods and Services Tax is also levied at each step of the supply chain. However, unlike VAT, services tax is charged regardless of the value added. It is usually just a fixed % of the transaction.

Typically, service tax works like this: it is charged to the business at each stage of the manufacturing process and to the end customer at the point of sale. The service tax is then refunded to everyone through tax credits.

In short, different sites actually have different requirements for commodity taxes, and everyone needs to make adjustments and adapt according to local conditions.

Regarding paying taxes for Amazon products, it all depends on the site you join. Different sites are in different countries, so the tax payment should be determined according to the requirements of the country. For example, Europe and the United States have completely different tax rates. You just need to refer to the local requirements to pay taxes. It is recommended that you consult the merchants on the same site.