Whether it is cross-border e-commerce or domestic e-commerce, as long as it meets the tax standards, you need to pay taxes, and personal stores are no exception. Recently, some merchants want to know the tax status of cross-border e-commerce businesses opened by individuals. So, let’s find out whether individuals have to pay taxes when doing cross-border e-commerce? How do sellers pay taxes?
1. Individuals Do you need to pay tax when doing cross-border e-commerce?
Different countries have different VAT tax collection and rates. If the target market of an individual cross-border e-commerce seller is Europe, you need to register a local VAT tax number. , Generally speaking, taxpayers need to pay VAT value-added tax = sales tax – import tax, and there are also small-scale taxpayers who need to pay VAT value-added tax = sales volume * interest rate.
European Union regulations stipulate that merchants, whether selling online or offline, can enjoy a certain tax-free quota. The portion exceeding the tax-free quota must pay VAT at the corresponding rate. So, do individual cross-border e-commerce sellers need to pay tax? Cross-border e-commerce is divided into no-source model and high-quality model. Both models need to pay after-sales value-added tax. Since the price of a single product in the no-source model is difficult to reach 22 euros, there will basically be no tariffs.
2. How do sellers pay taxes?
One is to use the official online operating system of the British tax department to declare independently, and the other is to ask a regular accountant to do it for you. According to the regulations of the British tax department, sellers should apply for a VAT tax number and register the corresponding VAT tax number at the place where the goods are stored. If the seller fails to add a VAT tax number or fails to file a tax declaration in a timely manner, the seller may be subject to seizure of goods or fines.
The above introduction is about whether individuals need to pay taxes when doing cross-border e-commerce? How do sellers pay taxes? Colleagues doing cross-border e-commerce need to pay attention to tax issues at all times and cannot pay less or late. Because such an approach will not only result in the store being fined, we need to understand the relevant tax policies and taxation standards while operating the store. On the basis of timely declaration and payment of taxes, we should also actively cooperate with the tax agencies and Customs related inspections to ensure the legality and stability of store operations. Only by strictly complying with tax regulations can we truly realize the corporate development strategy of cross-border e-commerce and obtain better market returns and customer reputation.