As we all know, VAT rates and tax types vary in different regions. The VAT tax in Europe includes not only sales tax, but also advertising tax. In other words, whenever a cross-border e-commerce seller pays advertising fees on a cross-border platform in Europe, he should also pay a certain advertising value-added tax (VAT). So, how to deduct the Amazon advertising VAT tax? See breakdown below.
1. Deduction basis of Amazon advertising VAT tax.
Amazon advertising VAT is based on certain tax conditions and tax policies. Amazon’s European site once proposed to transfer “sponsored services” to EU Amazon advertising entities, so EU Amazon advertising entities can collect taxes through cross-border e-commerce sellers with VAT tax numbers.
However, this collection must meet certain conditions. That is to say, if the VAT tax address is different from the country to which it belongs, the tax will be exempted; or if the seller’s VAT address is the same as the country, then the actual VAT rate will be charged.
2. Amazon advertising VAT tax deduction process.
First, search the tax settings in the background, then go through the tax settings channel, find the VAT number and add it, and finally check the address of the VAT tax number.
However, during this process, the VAT certificates of Chinese cross-border e-commerce sellers cannot be filled in according to their overseas addresses. Logically speaking, the VAT address should be changed to a real address in China.
After completing the above steps, you can confirm the charging ratio of advertising VAT. The following two channels can be used for confirmation: (1) In the data report, find the VAT invoice for product advertising, that is, find the charging details of China’s advertising VAT fees. (2) In campaign management, find all invoices for bill advance payments.
In short, the above is an introduction to the deduction basis and deduction process of “Amazon Advertising VAT Tax”. This deduction business is not carried out unconditionally, but should be collected through the EU Amazon advertising entity, and then the Chinese seller will operate according to the deduction process and deduction conditions.