The full name of VAT is Value Added Tax , which is the after-sales value-added tax commonly used in EU countries , that is, the profit tax on the selling price of goods . Tax is a difficult issue for most Amazon sellers , but in order to make the operation of the European station less bumpy, sellers need to have some understanding of the content of VAT .

How to apply for a VAT number ?

1. Information required for VAT registration

① A copy of the company's business license

② Identification of legal representative: ID card / passport / driver's license

③Address proof documents: household registration book / birth certificate / marriage certificate / house payment certificate / personal housing lease contract / employment certificate

④Screenshot of the front desk of the UK station of the e-commerce platform / shop link

⑤ VAT registration application form and 64-8 authorized signature documents

Second, apply for VAT registration process

1) Online registration

Online registration is completed by applying for an HMRC Gateway Account on the official website of the tax bureau, and the account is used for reporting in the future ; online registration can be tracked throughout the entire process, and you can also apply for joining the Flat Rate Scheme and the Annual Accounting Scheme; and online registration can be At the same time, apply for an EORI number and import VAT declaration. However, when additional information is required, the tax bureau may mail the paper information to your address, and the process is slightly slower. You can contact professional staff to quickly handle it for you.

2) Offline registration

Offline registration Complete the registration by filling in a paper form and mailing it to the tax bureau . The tax bureau will send the VAT information to your Gateway Account or email, and you can use it to file tax returns. Offline registration is adopted. If the information is complete and accurate, the tax bureau will directly mail the paper VAT certificate to your business address in China, and then you will create a Gateway Account on the official website of the tax bureau to declare and register according to the information on the certificate.

What is the rate of VAT?

There are two tax rates in the UK, the standard low tax rate is 7.5% and the normal tax rate is 20% . The annual sales of FBA issued in the UK is expected to be no more than 150,000 pounds. It is possible to apply for a low-tax declaration. The low-tax declaration is not deductible for import tax VAT . If the cumulative sales in one year exceed 230,000 pounds, you need to withdraw from the low-tax plan and use the normal tax rate. Once you leave the low-tax scheme, you cannot re-enter the low-tax scheme for one year.

How is the UK VAT tax rate calculated ( 20% tax rate declaration)?

VAT to be paid = sales tax VAT – import tax VAT

Sales tax VAT= market price / 6market price = fixed price x1.2

Import tax VA T= (declared value + first freight + customs duty) x20% (merchant can deduct it in quarterly declaration)

Import tariff = declared value X product tax rate (the tax rate here refers to the tariff rate )

Do you understand the above introduction about VAT ?