Detailed explanation of Amazon European VAT tax number: definition, application process and precautions

VAT refers to the post-sales value-added tax generally levied by EU countries when selling goods or providing services in EU countries, or importing goods from abroad into the EU, that is, the profit tax on the selling price of goods. VAT consists of Import VAT and Sales VAT. When goods are imported into the EU, import VAT must be paid on the goods; when the goods are sold, the import VAT can be refunded, and the corresponding sales VAT must be paid based on the sales volume. According to relevant EU laws and regulations, all merchants selling goods in the EU (including merchants using local third-party logistics warehousing services) must pay value-added tax in accordance with the law. Therefore, the VAT tax number has become the key for merchants to operate legally in Europe.

Definition of VAT tax number

VAT tax number, the full name is Value Added Tax Identification Number, which is the value-added tax identification number. It is an important identification used for filing VAT returns and paying taxes in European countries. Each European country has its own VAT system and tax requirements. Therefore, Amazon European sellers need to register in each country and obtain the corresponding VAT tax number.

The role of VAT tax number

Having a valid VAT tax number is a necessary condition for operating legally on Amazon Europe. Sellers who do not register a VAT tax number will not be able to sell goods to consumers in European countries. In addition, the VAT tax number is also a voucher for value-added tax declaration and payment. Sellers need to report their sales and pay the corresponding VAT to the relevant tax authorities every quarter. By registering a VAT tax number, sellers can also enjoy the tax preferential policies of the corresponding country, such as tax refunds.

VAT tax number application process

Determine the country of registration

Merchant needs to determine the country in which to sell products on Amazon Europe. Depending on the country selected, merchants will need to apply for a VAT tax number in accordance with the requirements of that country.

Prepare the required materials

Merchant needs to prepare relevant documents, such as business registration certificate, business license, tax registration certificate, etc. Specifically, including but not limited to:

• Clear scan of the original (copy) of the company’s business license;
• Clear scans of the company’s legal person ID card (front and back) (the front and back can be scanned separately);
• The house rental contract of the company (only needs to be attached and will not be investigated);
• Overseas company VAT application information service form (including legal person name, date of birth, passport number, email address, mobile phone number, and company name, company address, company registration date, business license number, Amazon registered email address that are consistent with the Amazon backend) , business model, product type, etc.);
• VAT registration power of attorney in English;
• UK HMRC FORM (British tax and customs document), requires the pinyin signature of the company’s legal person.

Submit application

The merchant submits a VAT tax number application to the corresponding tax agency or online platform according to the regulations of the selected country. Complete the application form and provide required documents and information.

Review and Issuance

The tax agency will review the application and issue a VAT number upon approval. The merchant will receive the corresponding tax ID confirmation document.

Notes

• When applying for a VAT tax number, sellers must accurately fill in relevant information, including company name, address, contact person, etc. Any errors or false information may result in rejection of the application or further investigation by tax authorities.
• After obtaining a VAT tax number, the seller is responsible for reporting sales and paying VAT to the tax authorities on time and accurately. Failure to pay taxes as required may result in fines and other legal consequences.
• If you are not familiar with the VAT tax number application process and tax requirements, sellers can seek help from professional tax consultants or accountants to ensure that the application process is smooth and local regulations are complied with.
• Merchants need to accurately record sales and purchase information, and retain relevant invoices, vouchers, transaction records and other documents. These documents will play an important role in filing and tax audits.
• If the country where the merchant sells on Amazon Europe changes or the tax number information needs to be updated, the merchant must update and notify the relevant tax authorities and the Amazon platform in a timely manner.

By understanding the definition, function, application process and precautions of VAT tax ID, sellers can better understand and successfully apply for VAT tax ID, and comply with the tax regulations of European countries. This will ensure that sellers can operate legally on Amazon Europe and enjoy relevant tax benefits, further expanding their business in the European market.