Amazon is the largest e-commerce platform. Sellers selling things on the platform must pay taxes. Many new sellers don’t know what Amazon taxes include, nor do they know how to pay taxes. This article introduces what parts of Amazon taxes include and how to pay taxes to help new sellers run stores on Amazon better.
1. What parts of Amazon taxes include
1. Sales tax. Sales tax, also known as “business tax”, is a one-time tax collected when a product is purchased. The money goes from the buyer to the seller and then to the government. This form of sales tax exists across the United States and is determined by state and local governments.
2. Value-added tax. Value-added tax (VAT) is a type of tax that is levied at all stages of production. At each stage of the production chain, the value of the product or service is increased, which means that it is levied accordingly from the government. The good news is that as a business owner, you can apply for a refund of the VAT paid in the production chain, and only the final consumer will bear the cost themselves.
3. Product and service tax. Each step of the supply chain will also impose product and service taxes (GST) on other businesses. Unlike VAT, it will be levied no matter how much value is produced. Generally speaking, GST will implement the “financial representative principle”, and sellers need to find a local qualified accounting firm as a representative, and visit the local tax authority to apply for registration and upload reports. All businesses operating in Europe must collect consumption tax on their goods and products. Whenever customers buy their products, the price they pay includes VAT. Although all European countries pay VAT, the tax rates will vary.
2. Here are the ways Amazon sellers pay taxes.
1. Use the official online operating system of the UK tax authority for self-declaration;
2. Develop a formal accounting system for operation.
According to UK tax regulations, each Amazon UK station operating account must add a VAT number. Each VAT number is unique. Sellers should apply for a VAT number on their own. The place where the goods are stored should register the local VAT number. If the seller does not add a VAT number and does not declare and pay taxes in time, the goods may be seized, fined or even closed. In some cases, Amazon may calculate, collect and pay applicable country/region, state sales and use tax, goods and services tax or value added tax (collectively, “Taxes”) for orders placed in a specific location in accordance with applicable law.
Amazon provides professional sellers with an optional tax calculation service to calculate taxes and other transaction fees for orders in non-Mall tax jurisdictions in the country/region of your choice. Amazon expressly agrees that taxes associated with your use of the Amazon tax calculation service (paid through your earnings) will be remitted to the appropriate tax authorities. The above is an introduction to taxes, I hope it can help you.