Detailed explanation of cross-border e-commerce consumption tax and customs clearance
Cross-border e-commerce is developing rapidly around the world, and the accompanying consumption tax and customs clearance issues have become the focus of many practitioners. This article will give a detailed introduction based on the consumption tax collection objects, customs clearance procedures and the special customs clearance requirements of each country.
Consumption tax overview
Consumption tax is a tax levied on specific consumer products and consumption behaviors. It mainly includes four categories of goods: special consumer goods that are harmful to physical and mental health (such as tobacco and alcohol), non-daily necessities (such as high-end cosmetics), high-energy consumption and high-end consumer goods (such as cars), and non-renewable scarce consumer goods (such as solid wood floors) . Consumption tax is mainly levied in the production, wholesale, retail and import links. The tax rate is divided into two forms: proportional tax rate and fixed tax rate.
Customs clearance process
Customs clearance refers to a series of procedures such as declaration, inspection, and tax payment of goods at the port customs. Goods are subject to customs supervision during customs clearance and cannot circulate freely without release. Some countries, such as Brazil, Russia, Indonesia, Argentina, etc., may experience varying degrees of delays in customs clearance. The specific requirements for these countries are as follows:
- Russia: Parcel services are only available in Moscow and St. Petersburg, and both the sender and recipient need to be companies.
- Brazil: All express shipments must be accompanied by a tariff number or the recipient’s passport or other documents, otherwise customs clearance will not be possible.
- Indonesia: Goods exceeding 10 kilograms will cause customs clearance delays.
- Argentina: Individuals may not purchase more than 5 items online per year.
Coping with customs detention
Common reasons for customs detention include taxation but buyers are unwilling to pay, goods are contraband or counterfeit, sellers fail to provide required documents, etc. Solutions often include negotiating a tariff sharing plan with the buyer in advance or providing necessary documents to assist with customs clearance.
European import taxes and VAT
VAT concept and tax rate
VAT (Value Added Tax) is after-sales value-added tax, which is applicable to imports and commercial transactions within EU countries. The standard tax rates in Germany and the UK are 19% and 20% respectively, with lower tax rates for specific commodities such as books and food.
Calculation method and reporting period
The formula for calculating import VAT is: (Declared value + first-trip freight + import tariff) × VAT rate. Sales VAT is calculated based on the final selling price. Germany needs to file monthly, while the UK files on a quarterly basis.
How to apply for a VAT tax number
To apply for a German VAT tax number, you need to submit the company business license, tax registration certificate, legal person certificate and other materials, and they need to be translated into German. In the UK, you can apply by mail or online, and the required materials are similar.
Cross-border e-commerce B2C tax policy
With the rise of the cross-border e-commerce B2C model, countries have begun to pay attention to the formulation of relevant tax policies. Currently, two methods, VAT or GST (Goods and Services Tax), are commonly used to collect consumption tax. This portion of the tax paid by consumers is typically passed on to buyers through pricing. In the future, more e-commerce platforms will require sellers to register and submit a VAT account in the local country.
In summary, understanding the scope of consumption tax collection and customs clearance procedures is crucial for cross-border e-commerce operators. In addition, as policies gradually improve, reasonable planning of tax strategies will also become one of the key factors for corporate competitiveness.