For most merchants who open Amazon stores in Europe, they assume that registering a VAT tax number is necessary in order to operate the store normally. But in fact, some merchants who ship their own goods do not need to register for a VAT tax number.
1. Sellers from EU member states, as long as annual sales exceed 81,000 (14/15 fiscal year);
2. For sellers who are not members of the European Union, as long as the final delivery of your goods is sent from the European Union, if you want to do FBA or overseas warehouses, you must register and pay VAT according to regulations (a more appropriate case is Chinese sellers using EU warehouses). Even if the overseas warehousing service you use is provided by a third-party logistics company and you have never opened an office or hired local employees in EU countries, you still need to pay VAT.
3. Chinese sellers who ship directly from China and whose cumulative sales exceed 70,000 pounds in 12 months need to register for VAT and declare and pay sales tax in accordance with regulations. As long as you meet any of the above conditions, you must register for VAT and declare and pay sales tax as required. I think most sellers will reach this number and register for a tax number insurance point first.
What are the consequences of not doing VAT on Amazon?
1. Goods exports cannot enjoy import VAT refunds;
2. The goods may be detained and unable to clear customs;
3. It is difficult to ensure normal sales on e-commerce platforms;
4. Failure to provide valid VAT invoices will reduce the transaction rate and positive review rate of overseas customers.
This is the end of the introduction to Amazon VAT in this issue. If you want to get more information about Amazon VAT, please pay attention and we will continue to answer your questions~
