A seller who is planning to engage in cross-border e-commerce asked the editor what VAT is? Why should I register for VAT? What should I pay attention to when registering for VAT? Today I will talk about this topic, and friends who are interested can learn about it together!
1. Why should I register for VAT?
Answer: If a warehouse in a local European country is used and the goods are sold, then VAT tax will need to be paid on this 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).
2. The difference between VAT and EORI
The VAT number is used when selling. The seller has a VAT number and the sales tax VAT (1/6 of the final selling price of the goods) must be included in the sale. EORI number is the abbreviation of Economic Operator Registration and Identification. This number is a required registration number for any individual/enterprise engaged in economic activities in EU countries, especially those engaged in import and export business. Regardless of whether there is a VAT number or not, if the seller wants to import goods into the UK on behalf of the importer and then apply for a refund of import tax (IMPROT VAT) (only for merchants with a VAT number), he must submit this EORI number to customs. Both VAT and EORI numbers are unique. The EORI corresponding to the corresponding VAT tax number should be in the format of GB-VAT number-000, without hyphens.
3. Under what circumstances do I need to register for VAT?
Answer: As long as you use an overseas warehouse, you need to register VAT.
4. Is it possible not to use the company's VAT number?
Each VAT number is unique and you should have a real and valid VAT number.
And you cannot abuse the VAT number of other companies or individuals as your own VAT account number.
This regulation is indicated when registering for VAT.
5. What are the consequences of not paying taxes after registering for VAT?
First of all, I would like to state that true, timely and accurate tax declaration is of vital importance.
If there is deliberate delay, error or false declaration, you may be subject to varying degrees of punishment from the UK tax authority HMRC, including seizure of goods, reporting to eBay or Amazon resulting in account freezing, and fines. Therefore, it is a very irrational decision for sellers operating in Europe.
