How long does it take to apply for Amazon UK VAT? How to apply?

Amazon has set up sites in many regions, such as the United States, the United Kingdom, etc. No matter which site you choose, you need to pay taxes. Some seller friends have chosen the Amazon UK site and want to know how long it takes to apply for Amazon UK VAT?

Amazon UK VAT registration conditions:

1. Have stock in the UK;

2. There is no inventory in the UK, and the annual sales from other EU countries to the country exceed the country's long-distance sales threshold of 70,000 pounds/year.

Required information:

1. A copy of the original and duplicate ID card of the individual (or company legal person) or passport;

2. Company business license (Hong Kong companies need br.cr);

3. Two certification documents of the legal person;

4. Basic information of the store and corresponding sales data.

How long does it take to apply for Amazon UK VAT?

The time limit for VAT issuance depends on the workload of the UK tax authorities and the way the staff handles the matter. Some applications will be issued within a week or even the next day after submission. Some applications may receive a 30-day review notice, but generally the tax number will be approved after waiting for two or three weeks, so 30 days is within the normal time limit.

What are the consequences if sellers do not pay VAT?

Sellers are required to make true, timely and accurate tax declarations. If there are deliberate delays, errors or false declarations, they may be punished by the UK Revenue and Customs (HMRC) to varying degrees, including goods seizure, reporting to Amazon resulting in account restrictions, and fines.

HMRC has strengthened VAT legislation for overseas businesses, requiring overseas merchants to register for UK VAT and appoint a local UK VAT representative, which gives HMRC great flexibility in review.

In addition, if the platform's overseas sellers fail to comply with UK VAT regulations and fail to pay VAT, HMRC has the right to require the platform to bear joint and several liability. Amazon has already begun taking action to crack down on tax evasion sellers.

What kind of sellers need to consider VAT?

All merchants engaged in cross-border e-commerce transactions who choose UK warehousing services, regardless of their size, need to consider the impact of UK VAT and must register in accordance with the law and declare and pay VAT on time.

When do sellers need to register for VAT?

1. When do UK retailers need to register for a UK VAT number? If a UK retailer's annual turnover (in any 12 consecutive months) exceeds £83,000, it is necessary to register for a VAT number. If the value of items imported from EU countries exceeds £83,000, a tax number must also be registered (even if the items are not resold).

After registration, the retailer's annual turnover must fall below £81,000 to cancel the VAT number.

2. When do EU retailers exporting to the UK need to register for a UK VAT number?

When EU companies sell products to customers in the UK (generally consumers, small businesses that have not registered for VAT numbers, public groups or charities), they must register for a UK VAT number if their annual sales exceed £70,000. If they feel it is necessary, EU companies can still register for a UK VAT number even if their annual sales are less than £70,000. Sellers must first submit a report to their own tax authorities and then register with HMRC.

3. EU retailers exporting goods subject to excise duty to the UK

If the seller is located in the EU and the products sold are subject to consumption tax (such as alcohol and tobacco), they must register for the UK VAT and consumption tax number regardless of the sales amount.

4. When do retailers outside the EU need to register for a UK VAT number?

If the retailer is located outside the EU and does not register for a VAT number, the buyer will need to pay VAT and import duties when the order package enters the UK.

5. Overseas retailers who stock products in the UK

If the retailer is located outside the UK but the stock is stored in the UK, it is best to register for a VAT number immediately. There is no registration threshold in this case, which means that you must register for a VAT number no matter how low your sales are.

All merchants engaged in cross-border e-commerce transactions, especially Amazon Europe, who choose UK warehousing services, regardless of their size, need to consider the impact of UK VAT and must register in accordance with the law and declare and pay VAT on time.

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