Nowadays, cross-border e-commerce platforms are booming around the world, and the most outstanding cross-border e-commerce platform is Amazon. Amazon has opened many sites around the world. Since the products sold are all overseas, tariffs are unavoidable. So, let’s learn how to calculate the UK Amazon import VAT tax? What is the calculation formula?
< p>1. How to calculate the UK Amazon import VAT tax?
The import VAT calculation formula for the UK site is: (Declared value + first-leg freight + import tariff) × VAT rate. Among them, the formula for calculating import tariffs on goods is: declared value × commodity tax rate. When calculating import VAT, sellers must pay special attention to the VAT rate and declared value in the formula. If the tax rate and declared value are wrong, the final calculated import VAT will also be wrong.
Specifically, quarterly declaration of VAT = sales tax – import tax. If the sales tax is greater than the import tax, additional sales tax will need to be paid; otherwise, the excess of import tax will need to be refunded. The main purpose of quarterly filing is to pay the sales tax for the current quarter to the British tax department (HMRC).
2. Scope of collection.
The scope of replacing business tax with value-added tax mainly includes the transportation industry and modern service industry.
3. Change business tax to value-added tax rate.
China’s business tax is gradually changing to value-added tax, and two new low tax rates have been added, namely 6% and 11%. The implementation of this reform pilot in Shanghai shows that the tax burden of enterprises is expected to be alleviated. The scope of replacing business tax with value-added tax mainly covers the transportation industry and some modern service industries. Enterprises in these industries were originally required to pay business tax, but now they can pay value-added tax under the new regulations, which will reduce the tax burden on enterprises. In short, the replacement of business tax with value-added tax is an important measure in China’s tax system reform. Enterprises need to understand the new regulations in a timely manner and operate in accordance with relevant procedures to ensure their legality and compliance.
The above introduces the relevant knowledge on how to calculate the UK Amazon import VAT tax. The import VAT is the tax paid before the product is sold. The final sales tax is the tax that should be paid after the product is sold in the UK. For the taxes paid, in order to avoid double taxation, the British Internal Revenue Service implemented a method of refunding more and subsidying more. If the final sales tax paid is greater than the import value-added tax, the tax amount needs to be paid. On the contrary, if the import value-added tax is greater than the final sales tax, you can get Tax refund.