Why should I sign up for Amazon European VAT?
If a warehouse in a local European country is used and the goods are sold, VAT tax will need to be paid on the order. To pay VAT, you need a tax code belonging to your own taxpayer. The VAT number is this code. (A metaphor: a seller without VAT is like a street vendor on the flyover, who needs to pay attention to the city management cars and the protection fees of thugs, while a seller with VAT is like having a business license, and can find a store to operate legally).
How is Amazon's European VAT calculated?
Take the German VAT tax calculation rules as an example:
Before calculating German taxes, you need to understand the following concepts:
Import tax: including import duty and import value-added tax (IMPORT VAT)
The calculation is as follows:
IMPORT VAT = (declared value + first-leg freight + DUTY) * 19% (this part can be deducted when the merchant pays sales VAT)
IMPORT DUTY = declared value * product tax rate
Sales VAT = Sales Price/(1+19%)*19% (Generally: On e-commerce platforms, the default sales price is the sales price including tax)
Actual calculation:
The declared value of the product is: 3 yuan
The first-leg freight is: 3 yuan
Tariff assumed: 4 yuan
Then import VAT = (3+3+4)*19% = 1.9 yuan
If the sales price of the goods is: 25 yuan
Then sales VAT = 25/(1+19%)*19% = 3.99 yuan
So when declaring VAT in Germany:
The fee paid is: sales VAT-import VAT=3.99-1.9=2.09 yuan
This is the end of the information about Amazon European VAT in this issue. If you want to get more information about Amazon European VAT, please continue to pay attention~
