In what cases does Amazon need to pay VAT? How to declare Amazon VAT?

When selling on Amazon, sellers need to comply with the tax laws of various countries and regions. Among them, EU countries require sellers to register for taxation and pay value-added tax (VAT) within the EU, which is a general requirement for the circulation of goods within the EU. So under what circumstances does Amazon need to pay VAT? Let us explain it to you below.

1. Under what circumstances does Amazon need to pay VAT?

Here are some situations where sellers need to pay VAT on Amazon:

1. The seller sets up a company in the EU and obtains a tax number and VAT number: If the seller sets up a company in the EU and plans to sell products on Amazon, the seller needs to legally register for tax in the EU and obtain a tax number and VAT number.

Once the tax number and VAT number are obtained, the seller needs to declare the value, quantity, type and other information of the goods to the EU customs and pay the corresponding VAT amount.

2. Sellers sell goods from outside the EU to buyers in the EU: If sellers sell goods from outside the EU to buyers in the EU, regardless of the value and quantity of the goods, sellers need to declare the value, quantity and type of the goods to EU customs and pay the corresponding VAT.

In addition, sellers are required to charge VAT to buyers and provide the corresponding tax number and VAT invoice information in the product description and shipping notice.

3. Sellers sell goods from within the EU to buyers outside the EU: If sellers sell goods from within the EU to buyers outside the EU, sellers need to charge buyers VAT, but do not need to declare the value, quantity and type of goods to EU customs. However, sellers need to comply with the tax laws of the buyer's country and ensure that taxes are paid on time.

2. How to declare Amazon VAT?

Amazon's VAT declaration process is as follows:

1. Get a tax number and VAT number: First, the seller needs to set up a company in the EU and obtain a tax number and VAT number. This information is necessary for VAT declaration.

2. Log in to Amazon Seller Central: Sellers need to log in to Amazon Seller Central and go to the "Settings" page.

3. Fill in the tax settings information: On the "Settings" page, find the "Tax Settings" section and fill in your company's tax number and VAT number, delivery address within the EU, and other information.

4. Download the VAT tax certificate: After filling in the tax setting information, click the "Submit" button to save the information. Amazon will send the VAT tax certificate to the seller's email.

5. Submit VAT declaration: Fill out the VAT declaration form on the Amazon seller platform, including the value, quantity, type and other information of the goods, and upload the VAT tax number certificate. After filling in, click Submit to complete the declaration.

6. Pay VAT: Amazon will automatically calculate the VAT payable based on the value, quantity, and type of goods declared. Sellers need to ensure that they pay the tax on time in order to continue selling goods on Amazon.

It should be noted that the tax laws of different countries and regions are different, and the specific declaration process and requirements may vary. Therefore, sellers need to carefully understand the tax laws of relevant countries and regions to ensure that they declare and pay taxes on time.