VAT refers to the post-sale value-added tax generally levied by EU countries when selling goods or providing services in EU countries, or when importing goods from abroad into the EU, that is, the profit tax on the sale price of goods. VAT consists of import value-added tax (Import VAT) and sales value-added tax (Sales VAT). When goods are imported into the EU, import value-added tax needs to be paid for the goods. When the goods are sold, the import value-added tax can be refunded, and then the corresponding sales value-added tax is paid according to the sales amount.
According to relevant EU laws and regulations, all goods that have been sold in the EU (including merchants using local third-party logistics and warehousing services) must pay value-added tax in accordance with the law. Simply put, if a local European warehouse is used and the goods are sold, then this order needs to pay VAT. To pay VAT, you need a tax code belonging to your own tax subject, which is the VAT tax number. Therefore, having a VAT tax number is equivalent to having a business license, which is a formal business.
So how to apply for a VAT tax number? Sellers only need to find a third-party tax agency in Europe and submit the following materials to the agency.
(1) A clear scan of the original (or duplicate) of the company’s business license.
(2) A clear scan of the company’s legal representative’s ID card (front and back) (front and back can be scanned separately).
(3) The company’s legal representative’s housing lease contract (just attach it, no investigation will be conducted).
(4) Overseas company VAT application information service form (including the legal representative’s name, date of birth, passport number, email address, mobile phone number, and the company name, company address, company registration date, business license number, Amazon registration email address, business model, product type, etc. that are consistent with those filled in on the Amazon backend).
(5) VAT registration power of attorney in English.
(6) UK HMRC FORM (UK Tax and Customs Administration document), which requires the company’s legal representative’s pinyin signature.