After the implementation of tax withholding and repayment on e-commerce platforms, the issue of British tax refunds has become a common focus for sellers. But when it comes to tax refunds, most sellers still have doubts and uncertainties. Therefore, in order to help sellers better understand the British tax refund process and make reasonable VAT plans, let’s learn how to apply for VAT refunds for British cross-border e-commerce after the tax reform?
The tax refund department of the British Inland Revenue Department “repayment”
department” often reviews the authenticity of tax refunds. Because domestic companies and offshore companies in the UK usually have a large number of tax numbers, sellers who are randomly inspected usually need to provide information related to tax refunds and sales to the General Administration of Taxation. The tax office audits the companies Afterwards, the refund process will begin, but the time limit is not stable and usually takes 2-3 months or even longer.
1. How can British cross-border e-commerce companies apply for VAT refund after tax reform?
1. After the tax reform, sellers who use FBA/overseas warehouse B2C orders to sell goods on the global platform do not need to declare VAT anymore, but they need to process already taxed orders such as returned/unable to check-in orders. For tax refund processing, regardless of whether the seller uses a flat tax rate or a standard tax rate, the British IRS is allowed to make declaration adjustments for return orders that have been taxed in previous quarters before the returns arrive.
2. After the tax reform, The input tax under the standard tax rate must be deducted. If you want to deduct C88 (import VAT), the seller’s forwarder needs to clear the customs declaration form. The issuer of the customs declaration form will receive the C79 document in the middle and late next month. The VAT amount in will be consistent with the VAT amount on the C88 document on the customs declaration document, which is the customs declaration deduction voucher. If you want to offset the input invoice, you need to provide a British VAT invoice that meets the regulations and require the seller to be in the UK. Carry out commercial activities.
2. Tax refund process.
1. Check: The general tax authority will send the refund to the seller in the form of a check, but this method is only applicable to banks. This is not possible for UK sellers.
2. VAT account: The tax department will deposit the refund in the customer’s gateway account so that the tax can be deducted in the next declaration. But this method is the same. It does not apply to Chinese sellers because Amazon has implemented the responsibility of withholding and paying taxes.
3. Bank account refund: Because Amazon has implemented the responsibility of withholding and paying taxes, import tax refunds need to be received. The tax department will return the tax to the seller based on the bank account provided by the seller. However, due to unclear third-party payment methods, the refund may take a long time.
The above. This article introduces the relevant knowledge about how British cross-border e-commerce companies can apply for VAT refund after tax reform. There are uncertainties in the three tax refund methods. Sellers need to make a choice based on their own circumstances. At present, the new policy of British tax reform has begun to be implemented. Britain’s exit from the European Union has also had a certain impact on sellers in the British market. Sellers need to pay attention to the latest developments and formulate reasonable VAT plans.