Since Amazon opened its direct mail service to China, it has brought great convenience to our overseas shopping. Because sellers need to pay taxes for goods purchased from overseas, Amazon has a kind of payment called prepaid tax that needs to be paid. So today, let’s take a look at the relevant information about Amazon’s prepaid tax with the editor.
Prepaid tax fees are generally divided into two types, one is prepaid customs clearance fees, and the other is prepaid consumption tax or value-added tax.
First, let’s talk about prepaid customs clearance fees. Prepaid customs clearance fees are specifically for US customs clearance, and merchants on the Amazon platform need to purchase a deposit from the customs. Prepaid customs clearance fees can be divided into one-time purchases and annual purchases. If a merchant needs to import goods frequently, it is recommended to purchase annually; if it is not a frequent import and export of goods, it can be purchased on a per-time basis, and some relevant departments will also issue a relevant authorization letter to the merchant. Note that the authorization letter is permanent rather than one-time.
After the merchant prepays the taxes to be paid, the merchant will also get some customs clearance accounts and coding information of related goods, etc., which the merchant may use later.
Prepaid consumption tax or value-added tax is calculated and collected by Amazon platform for orders sent to specific locations according to local laws and regulations in different regions.
Amazon platform has many sites around the world, but the tax standards in each region are different. Some regions may be very strict on taxation, but some regions have relaxed taxation policies. For those regions with very strict taxation, Amazon platform may require platform merchants to prepay taxes. The ultimate goal is to help merchants and platforms themselves to reasonably avoid taxes.
Generally speaking, after canceling an order on Amazon platform overseas purchase, a full refund will be made. The full refund includes the prepaid tax in addition to the price of the product itself and international shipping costs. At the same time, the prepaid tax of merchants on the Amazon platform can also be refunded. Amazon platform has always adopted the form of more refund and less supplement. Generally speaking, the prepaid tax of merchants will be refunded within 60 days.
If the platform determines that the merchant meets the Amazon platform tax refund standards, tax refunds can be made. The tax refund process is to find the relevant order in the management order of the platform page, then click the refund button on the detail page, enter the page order, click to refund, and then click the tax-free buyer or the order in the unincorporated area. If it is a tax-free buyer, fill in the relevant reason; if it is an order in an unincorporated area, select the tax refund jurisdiction and submit it.
The above is a detailed explanation of Amazon’s prepayment tax policy and tax refund process, I hope it will be helpful to you.