With the rise of cross-border e-commerce, many traditional domestic merchants will not only open stores on Amazon, but also conduct overseas shopping on Amazon. However, unlike domestic shopping, overseas shopping requires tax payment. So how do you pay taxes on Amazon overseas shopping? What are the types?
Taxes and fees for Amazon overseas shopping are all included in the order. As long as the goods meet the conditions for local tax collection, you need to pay the corresponding tax fees.
Currently, there are four main tax calculation modes for Amazon overseas shopping
1. Value-added tax mode
This tax mode is to levy tariffs at a fixed rate of 11.9%. If there is also consumption tax, it also needs to be added. This mode is applicable to most products purchased by Amazon overseas.
Tax calculation method: Value-added tax = (product price + shipping fee) x fixed tariff. If there is a discount code, the price of the product is the price of the product before the discount code is used.
2. Postal tax mode
The postal tax mode is applicable to most overseas shopping scenarios, and is currently mainly concentrated in the UK site.
Most of the goods purchased by Amazon overseas are subject to a 30% tax rate. In addition, there are 15% and 60% tax rates, which are calculated differently according to different product categories.
Tax calculation method: Postal tax = product price * tax rate of the corresponding category
3. Mixed tax calculation mode
That is, there are both goods applicable to the postal tax mode and goods applicable to the value-added tax mode in the order. This mode does not have a fixed tax rate.
Tax calculation method: Mixed mode tax = tax fees for goods subject to value-added tax + tax fees for goods subject to postal tax
4. Separate tax calculation mode
If an order contains Amazon goods from multiple countries at the same time, then the taxes should be calculated separately according to different countries. Different from the above mixed tax calculation mode, this mode is applicable to cross-country Amazon. Of course, if the goods in the order of the same country include goods in the postal tax mode and goods in the value-added tax mode, this part also uses the mixed tax calculation mode. It also does not have a fixed tax rate.
Tax calculation method: Calculate the tax fees of goods in different countries separately, and calculate the tax fees of goods in the same country together, and finally add up the income by country.
The above is the payment and calculation method of Amazon’s overseas shopping taxes. I hope our sharing can be helpful to everyone.