How is Amazon's UK VAT tax calculated? What is the calculation method?

Cross-border e-commerce platforms are developing very well now. Amazon is the best cross-border e-commerce platform in the world. It is divided into many sites. Because it is an overseas product, tariffs are unavoidable. How to calculate Amazon UK VAT tax?

Import VAT = (declared value + first-leg freight + import tariff) * VAT rate

Import tariff = declared value * commodity tax rate (different commodities have different tax rates)

Note: Sellers need to pay attention to the VAT rate in the formula and correctly calculate the declared value of the import tariff. If the tax rate and the declared value are wrong, the final calculated import value-added will also be wrong.

Quarterly declaration VAT = sales tax - import tax. If the sales tax is greater than the import tax, additional sales tax will be paid. Otherwise, the excess import tax will be refunded. The most important purpose of making quarterly declarations is to pay the sales tax of the quarter to HMRC.

The scope of collection of business tax-to-VAT is as follows:

1. Scope of Collection

The scope of the business tax to value-added tax reform mainly involves the transportation industry and some modern service industries;

The transportation industry includes: land transportation, water transportation, air transportation, and pipeline transportation.

Modern service industries include: R&D and technical services, information technology services, cultural and creative services, logistics support services, tangible movable property leasing services, and forensic consulting services.

2. Business Tax to Value Added Tax Rate

1. After the reform, those who originally paid business tax will change to paying value-added tax, and the value-added tax will be increased to two low tax rates of 6% and 11%.

The scope of the business tax reform to value-added tax mainly involves: transportation industry and some modern service industries. The transportation industry includes: land transportation, water transportation, air transportation, and pipeline transportation. Modern service industries include: R&D and technical services, information technology services, cultural and creative services, logistics support services, tangible movable property leasing services, and forensic consulting services.

According to the experience of the Shanghai pilot, the tax burden of enterprises has been reduced after the reform. Business tax is calculated and paid in full based on income. After the change to value-added tax, some costs and expenses can be deducted, which can actually reduce the tax burden.

After reading the above introduction, you should know how to calculate Amazon's UK VAT tax. In fact, there is a formula for calculation. As for the scope of collection of business tax to VAT, you can refer to the above content!

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