Is VAT required for Amazon Europe? In what cases do I need to register for VAT?

In the process of doing cross-border e-commerce on Amazon, many merchants have heard about the VAT tax issue. In fact, many people are unfamiliar with this VAT tax because there is no such tax in domestic e-commerce, but it is very common in the European site. So is VAT required on Amazon's European site?

Is VAT required for Amazon Europe ?

Self-delivery accounts do not need to register VAT, but if you have already registered VAT, then no matter whether you have sales or not, whether you are self-delivering or FBA, you need to declare it on time. If the seller does not declare, the tax bureau will estimate the tax amount for the seller. Sellers who want to develop in the European market must follow the tax bureau's requirements in terms of taxation, and the tax bureau's management will only become more and more strict.

If the seller does not want to give up the account, they must first deal with the tax issue if the tax bureau has already notified them to pay the back taxes. And if the seller does not respond to the email within the time specified by the tax bureau, the tax bureau will notify Amazon to close its account.

Under what circumstances do you need to register for VAT?

1) Shipment from outside the EU to warehousing within the EU.

2) B2C distance sales within the EU break the tax threshold in the destination country.

3) Distribution of goods between warehouses in different countries within the EU.

4) Import goods into the EU.

5) Selling goods to EU business sellers.

Anyone who meets any of the above five conditions shall register for VAT.

Once sales exceed the distance selling threshold in an EU country, sellers are obliged to register for VAT in that country.

You must pay VAT to open a store on Amazon Europe. This is a legal requirement in the EU, so there is no way to avoid it. It is recommended that you register for a VAT tax number directly to pay taxes, which will make payment more convenient. If you do not pay and the platform finds out, your store may be closed.

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