How to apply for VAT on Amazon Europe? How much VAT should be paid?

To open a European store on Amazon, you need to register for the Amazon Europe site, and you also need to register for VAT. Some people may not understand what VAT means. In fact, it is a tax registration in the European Union, which is similar to the domestic value-added tax. Here I will tell you how to apply.

1. How to apply for VAT on Amazon Europe?

Provide the corresponding country registration information and find a tax agent to register for VAT.

2. What materials are needed?

The documents are similar, the most important ones are the domestic company business license, legal person ID/passport, Amazon store information screenshots, registration forms for each country, and special documents for each country, 64-8, etc. Spain is special, requiring Hague certification and providing relevant documents.

3. When should I pay the fee?

Different countries have different requirements. Here are five common European countries:

United Kingdom – January + 7 days before the reporting quarter;

Germany – before the 10th of each month;

Italy – by the 15th of each month or quarter in which the reporting period occurs;

France – before the 19th of every month;

Spain – by the 15th of each month during the reporting quarter

4. How much VAT should be paid?

1. United Kingdom

There are three VAT rates in the UK: first, a standard rate of 20% (applicable to most goods and services); second, a low rate of 5% (such as household electricity or gasoline); third, a 0% rate (for daily necessities, unprocessed food and children's clothing products)

2. Germany

There are two types of VAT rates in Germany: one is the standard rate of 19%, which applies to most other products and services; the other is a low rate of 7%, which applies to books, newspapers, food and agricultural products.

3. Italy

Italy's VAT is a standard rate of 22%, which applies to most products.

4. France

France currently implements four tax rates, namely zero tax rate, 2.1%, 5.5% and 19.6%. Among these four tax rates, 19.6% is the basic tax rate, applicable to general goods and services; 5.5% is the low tax rate, applicable to citizens' daily necessities stipulated by the tax law, such as water, food, coal, gas, electricity, beverages, books, passenger transportation, movies, hotels, etc.; 2.1% is the extra low tax rate, which applies to specific goods, such as medicines, newspapers, etc.

5. Spain

Spain's VAT is a standard rate of 21%, which applies to most products.

5. Who needs to pay taxes?

From sales tax to VAT tax, European compliance is imperative, but what is coming will eventually come. If you are in any of the following situations, you should quickly find an agent to register the VAT for the corresponding site.

1. First make sure whether you have Pan-European shipping. If you have opened Pan-European shipping, your goods are not under your control, so you need to open VAT for five countries.

2. If you do not have Pan-European sales enabled, you must register the VAT of the country where your goods are stored in FBA or a third-party overseas warehouse. For example, if your goods are stored in the UK and shipped to a French buyer, you only need to enable UK VAT. (The premise is that the remote sales do not exceed the limit)

If you do not apply for VAT, you will not be able to sell goods to Europe. To register for VAT, you need to provide a lot of materials, such as the company's business license, the company's legal identity certificate, etc., so it is recommended that you consult a professional tax advisor.

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