Amazon platform sellers are divided into corporate sellers and individual sellers. Corporate sellers are generally stores registered by enterprises or organizations, and individual sellers are generally store accounts registered by a certain person. There are certain differences between individual sellers and corporate sellers in many aspects. For example, the Amazon platform has different charging standards for individual sellers and corporate sellers. Corporate sellers generally have their own company’s brands and products, while individual sellers generally sell other people’s brands and products on behalf of others and must obtain the right to operate the products. In addition, the tax collection policies of individual sellers and corporate sellers are also different. This article mainly introduces the tax collection rules for individual sellers on the Amazon platform.
For individual sellers, after successfully registering to the platform account, they also need to register the VAT tax number that the seller needs to use when paying taxes. And the information of the registrants of these two accounts must be consistent. Each Amazon site has different specific tax collection policies.
For example, on the Amazon platform UK site, the Amazon platform seller’s account must add a VAT account, and the seller account and VAT tax number are unique. In general, sellers need to apply for the corresponding VAT tax number in accordance with the regulations of the local FBA warehouse they use.
If the Amazon platform detects that the seller’s account does not have a matching VAT tax number, or the information of the two does not match, the Amazon platform will impose corresponding penalties, such as revoking the right to sell the product, sealing the goods, closing the account and store, etc.
In addition, there are some other rules for individual sellers on the Amazon platform. For example, individual sellers do not need to pay value-added tax under certain conditions. The details are as follows:
First, if the individual sellers on the Amazon platform are facing the foreign consumer market, all income comes from foreign consumers. In this case, there is no need to pay value-added tax on the product.
Second, if the seller uses foreign logistics services, but the logistics fees are finally settled in the domestic system, this part of the income does not need to pay value-added tax.
In short, the tax policy for individual sellers on the Amazon platform is slightly different from that of other types of sellers. Before entering the Amazon platform, sellers should understand these tax policies in detail and make adequate preparations for smooth operations in the future.