Detailed explanation of Amazon seller taxes and fees: a comprehensive guide from overseas shopping to opening a personal store

For Amazon sellers, it is crucial to understand and correctly handle tax issues. Whether you are an overseas shopping user or an entrepreneur opening a personal store, mastering correct tax knowledge can help sellers better plan business strategies and avoid unnecessary legal risks. This article will provide a comprehensive introduction to Amazon’s overseas shopping taxes and fees, the taxes and fees involved in opening a personal store, and the tax calculation for American Amazon sellers.

Amazon overseas shopping taxes and fees

During Amazon overseas shopping, users need to pay attention to the following tax models:

VAT model

Most products purchased overseas by Amazon are applicable to this model, and tariffs are levied at a fixed 11.9%. If there is any consumption tax, it needs to be accumulated. The tax calculation method is: value-added tax = (commodity price + freight) × fixed tariff. The price before the discount code is used is used in the calculation.

Postal tax mode

Applicable to most products on the UK site, the personal postal tax rate is usually 30%, but it may also be 15% or 60%, depending on the product category. Tax calculation formula: Postage tax = product price × tax rate of the corresponding category.

Hybrid tax calculation model

Use this mode when the order contains goods subject to personal postal tax and value-added tax. There is no fixed rate for tax calculation.

Separate tax calculation mode

When an order contains items from different countries, taxes are calculated separately by country. If goods from the same country have both postal tax and value-added tax modes, the taxes will be calculated together.

Amazon personal store tax and fees

When opening a personal store, you need to pay special attention to the following taxes and fees:

Income tax

Individual sellers are required to pay a corresponding proportion of income tax according to the laws of the country or region where they are located. Tax rates vary by region and are generally higher than the corporate tax rate.

Sales tax

When collecting payment from buyers, a portion must be set aside to be paid to the government as sales tax. Tax rates are set according to the laws of each country.

Special taxes

Some special products such as food and beverages may be subject to additional sales tax regulations.

Other fees

Including but not limited to platform service fees, sales commissions, storage and delivery advertising and other miscellaneous expenses.

US Amazon seller tax calculation

Amazon sellers operating in the United States need to pay attention to the following taxes:

Import taxes

Includes customs duties and import VAT. The former is determined based on the declared value and product category, while the latter needs to be calculated together with the first-way freight.

Sales VAT

The calculation formula is: (selling price after tax ÷ (1 + tax rate)) × tax rate.

Actual payment of VAT

The difference after deducting import VAT and other deductible amounts.

Conclusion

To sum up, whether you are an Amazon overseas shopping user or someone who plans to conduct personal business on the platform, you should understand the relevant tax policies in detail to ensure compliance. In addition, sellers should always pay attention to policy changes so that they can adjust their strategies in a timely manner. When necessary, consulting professionals can help you better cope with the complex and ever-changing tax environment.