That is, Value Added Tax/ AD VALOREM tax, additional tax, a tax system in the European Union, also known as value-added tax. If your products are shipped from UK local warehousing, they belong to the VAT payable category in the UK. We recommend that you register a VAT number as soon as possible and declare and pay tax in order to legally use UK local warehousing for delivery and sales.

     That is the abbreviation of Economic Operator Registration and Identification. This number is a necessary registration number for all enterprises in EU countries that have economic activities, especially import and export business. As long as the number is obtained by registering with the customs of the country where the company belongs, it is common throughout the EU. The usual format of EORI number is: GB+VAT number+000, which is used when entering customs.

From import to completion of the transaction, there are 3 taxes related to the seller, namely customs duties, import value-added tax, and sales value-added tax.

(1) When goods are imported into the United Kingdom, the money to be collected by customs tax is called import tax, import tax = customs duty + import value-added tax

(2) After the online transaction is completed, the tax bureau will have to settle the account with you. At this time, they will refund the import VAT you have paid, and let you pay the sales tax based on the sales.

There are three VAT rates

20% standard rate (applies to most goods and services)

5% low tax rate (such as household electricity or natural gas, etc.)

0% tax rate (applicable in very rare cases)

      Sellers with sales of less than 230,000 pounds in one year can apply for Flat VAT. Generally, most of the products of Chinese sellers are 6.5% in the first year (the first year after VAT takes effect), and 7.5% in the second year, but the VAT that has been imported cannot be Deduction! And the final tax rate can only be determined after the tax bureau approves the tax rate. 

New Regulations as of April 1, 2017

(1) The cost should be more than £1000/year

(2) The cost should be greater than 2% of the turnover

Those who do not meet the regulations are taxed at 16.5% and cannot enjoy 7.5%

     The goods are already , and the goods are not imported into the UK by the UK buyer personally. That is , merchants who use British warehousing services (Amazon FBA, third-party overseas warehouses) must pay VAT in accordance with the law .

The same is true for Germany.

Clearing old accounts/checking 0 declarations, how should sellers declare VAT?

     Amazon sellers need to pay attention to the following after registering for UK VAT:

     If your seller account is a new VAT with a new account , you can file tax returns on time every quarter.

If it is an old Amazon account that      has been operating for a long time , the sales before VAT is required to be taxed, and a questionnaire with dozens of questions is attached.

     Some sellers have sales income, but the declaration is 0 declaration. When the tax bureau checks the 0 declaration company, once it finds that there is a business on the platform but 0 declaration, it will impose different degrees of fines and tax assessment.

     After applying for VAT registration, even if there is no sales, you need to make tax declarations on a quarterly basis

     There is no sales , but there is import customs clearance in the current period and an import tax bill is generated, and a non-zero declaration is made, and there is a tax refund.<