Does Amazon's global shopping include tariffs? How is the tariff calculated?

Purchasing overseas imported goods on Amazon is a common operation, because the product variety on Amazon is very rich and can meet the needs of most buyers. Some users are buying for the first time, so they don’t know whether Amazon’s overseas purchases include customs duties. Let’s find out below.

Does Amazon's overseas purchases include customs duties?

Amazon overseas shopping is subject to tax. You only need to add a make-up item with a different shipping location from the original product, and when the total amount reaches 200 yuan, you can get free shipping, and you only need to pay the tax for this make-up item. Or another tax-free item, if you do not need to pay tax when buying these two items separately, and the two items are shipped from different regions, then you can achieve the goal of completely free shipping and tax exemption when settling.

How are tariffs calculated?

1. Travel and Postal Tax Model

Before the tax reform, we used this taxation model for overseas shopping. I believe that all the experienced overseas shoppers are very clear about it. In simple terms, it is a tariff. Tax rate: There are currently three levels of travel tax rates (15%, 30%, 60%), corresponding to different types of goods, and the travel tax rate for Amazon overseas purchases is mostly 30%. Tax calculation method: product price * tax rate of the corresponding category (15%/30%/60%) = travel tax. Collection method: There is a 50 yuan tax exemption. As long as the travel tax does not exceed 50 yuan, there is no need to pay taxes in advance. Applicable products: A small number of products that are not subject to value-added tax. Currently, there are very few such products in the United States, and they are mainly concentrated in the United Kingdom.

2. VAT model

At present, domestic cross-border e-commerce all follows this model, that is, a constant tariff of 11.9% is levied, of which 17% is Amazon's value-added tax and 0 is consumption tax. If there is a demand for consumption tax, it will be added. Tax rate: The product tax rate calculated according to the value-added tax model is currently 11.9% (some products such as cosmetics need to increase consumption tax), tax calculation method: value-added tax = (product price and shipping cost) 11.9%, if there is a discount code, the calculated price is the product price before the discount code is superimposed, and members can enjoy free shipping within 200 yuan, so the shipping cost there is 0, which is equivalent to a little tax exemption under this tax calculation model, collection method: there is no previous 50 yuan limit for postal tax, and even a few cents have to be paid, applicable products: Most of Amazon's overseas shopping products are subject to the value-added tax model.

3. Mixed taxation model

Simply put, your order includes goods that are suitable for the personal tax model and goods that are suitable for the value-added tax model. Tax rate: There is no fixed tax rate. Tax calculation method: In general, mixed model tax = value-added tax commodity tax, personal tax, commodity tax. Collection method: Amazon's operation prioritizes the personal tax model to achieve the purpose of tax exemption, but there is no overseas purchase measurement. It is calculated separately and taxes need to be paid in advance. Applicable products: Amazon Overseas Purchase ships from the same country pavilion (the United States, the United Kingdom, and Japan). Orders include goods under the personal tax model and goods under the value-added tax model.

4. Separate tax calculation model

Because Overseas Shopping connects to Amazon in three countries at the same time, when an order contains Amazon products from other countries, taxes will be calculated separately by country. This is different from the mixed taxation model mentioned above. This applies to multinational Amazon. Of course, if the goods in the order belong to the same country and include goods in the postal tax model and goods in the value-added tax model, this part also uses the mixed taxation model. Tax rate: There is no fixed tax rate. Tax calculation method: Amazon calculates the taxes of goods in the same country together, and finally adds them separately by country. Collection method: If there is no tax exemption, tax must be paid in advance. Applicable goods: Orders contain goods from different countries.

Whether Amazon overseas purchases are subject to customs duties depends on the amount of the goods. If the tax-free threshold is reached, it can be directly tax-free, but if it is not reached, customs duties will need to be paid. Currently, the tax-free policy on the Amazon platform is still a great offer.

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