VAT is a topic that all European sellers on Amazon cannot escape. Next, let’s learn about VAT together.
1. What is a VAT tax number?
The full name of VAT is Value Added Tax? It is actually what we call value-added tax.
The so-called VAT tax number is the VAT identification number registered by the seller in the UK, which is used to pay taxes to the British tax agency.
For now, the country with the strictest tax ID requirements on Amazon is the United Kingdom. Currently, sellers who open a European site on Amazon must fill in a British vAT tax number, because the UK is now the only country that forces all Amazon sellers to fill in a tax number and pay VAT normally. To this end, before the peak season of 2017, Britain and Britain also convened a meeting between Amazon and Ebay to force sellers to pay taxes. All discussions of VAT below refer to UK VAT and do not refer to other European countries.
Amazon’s current VAT requirements are: you must fill in a British VAT account when selling on the European site. Otherwise, our account may be closed at any time.
2. Information required for VAT tax number application
The information required for UK VAT application is similar to KYC review. The required information is more complex but not difficult to obtain. They are listed below.
A clear scan of the company’s business license, preferably the original, and please note that it is best not to have any blur when scanning, otherwise it will be rejected.
The front and back of the company’s legal person’s ID card should also be scanned clearly, and it is best to scan them separately. It is best to have no PS traces.
? Scanned copy of the first page of the legal person’s passport. If you don’t have a passport, please use your driver’s license, marriage license, residence permit and other documents instead.
? Legal person’s house rental contract. You only need to attach it here. The lessee is a legal person, and the tax agency will not investigate other contents.
? Overseas company VAT application information service form, including legal person name, date of birth, passport number, email address, mobile phone number, company name, business model (Amazon), and product type that are consistent with the Amazon backend. , company address consistent with Amazon’s backend, company registration date, business license number, if you have British bank account information, please fill in, Amazon registration email, estimated annual revenue (it is recommended to fill in within 100,000 pounds), and want to officially start registering for VAT Time and China’s VAT number (if any), etc.
?A VAT registration power of attorney, which must be in English.
UKHMRC Form document needs to be printed out and signed by the legal person in Pinyin.
The above content is all the documents required for the seller to register for VAT. The seller only needs to prepare it and hand it over to your VAT agency.
3. VAT declaration fee, address fee, EORI application fee
After registering for VAT, the only thing left is money. Anything that involves money is no small matter, so I will introduce several types of expenses next.
VAT registration fee: This fee is usually paid by your agent to help you register for VAT.
VAT declaration fee: This fee is usually the service fee paid by your agent to help you do accounting and declare VAT for you every quarter.
? VAT address fee: This fee is charged to the address to which your tax bill needs to be sent. Most organizations are free for life.
? EORI (Economic Operators Registration and Identification): refers to a unified identification code for all economic activities of an enterprise in EU customs. Most service companies help apply for free.
?VAT tax: This fee needs to be paid to the UK tax agency based on the seller’s sales.