As an Amazon store seller, you not only need to consider the source cost and transportation cost, but also VAT. Today we will introduce VAT in detail.
The article is long and the content is divided into the following three parts
●VAT tax rate
●VAT application steps
one. Introduction to VAT
The full English name is "Value Added Tax". It is an after-sales value-added tax commonly used in EU countries, that is, the profit tax on the sale of goods. The product needs to pay import tax. After the product is sold, the seller can refund the import value-added tax, and then pay according to the sales volume. applicable sales tax.
The scope of application of the VAT tax number is mainly the United Kingdom, Germany, France, Italy, and Spain. Not all countries need to register for VAT. If you want to sell products in which country, you need to register VAT in which country, and the VAT of each country cannot be used universally.
2. VAT tax rate
At present, there are three VAT tax rates in the industry: 0% tax rate, 5% low tax rate and 20% standard tax rate.
-0% tax rate: It is a special case, applicable to infant clothes and shoes, books, newspapers, women's products, etc.;
-5% low tax rate: applicable to products such as fuel and household energy, public health supplies, energy-saving materials, and child seats;
-Standard tax rate of 20%: The standard tax rate applies to the vast majority of common goods and services.
three. VAT application steps
Take the UK station as an example: there are two channels for sellers to register for VAT, one is online registration, and the other is offline mail registration.
1. Online Registration
Apply for HMRCGatewayAccount through the official website of the tax bureau, complete the registration, and declare through this Account in the future; the whole process of online registration can be tracked and inquired, and you can also apply to join the Flat Rate Scheme and Annual Accounting Scheme; you can apply for an EORI number at the same time, and import Amazon VAT declaration, but sometimes you need Supplementary information, the tax office can mail the paper information to your address, the process is a bit slow. You can contact professionals to deal with it quickly for you.
2. Offline registration
You will fill in the paper form and mail it to the tax bureau to complete the registration, and the VAT information will be sent to your GatewayAccount or mailbox, which you can use to declare taxes. If the information is complete and accurate, the tax bureau will mail the paper VAT certificate directly to your business address in China, and then create a GatewayAccount declaration and registration on the official website of the tax bureau according to the information on the certificate.
(The content of this article is organized based on online data. For the purpose of conveying more information, it does not mean that QuanExpress agrees with its views and positions)