Do Amazon sellers need to pay taxes in the country? What taxes do they need to pay?

Many merchants like to open stores on Amazon. After we open a store on Amazon, there are still many things we need to do, such as operating and promoting the Amazon store. Do Amazon sellers need to pay taxes in the country? The answer is given below.

Do Amazon sellers need to pay taxes in the country?

If Amazon in foreign countries does not need to pay taxes, it is because it is in foreign countries and has nothing to do with China. Domestic ones must pay taxes, just like opening a store in China.

What taxes should be paid?

1. Sales Tax:

Known as a "sales tax," it's a simple one-time tax collected at the time of a purchase. The money goes from the consumer to the seller and then to the government: ultimately. This form of sales tax exists across the United States and is determined by state and local governments. (In the United States, there is no across-the-board national sales tax.)

Sales tax in the United States is very complex because each state and local jurisdiction can decide their own various rules.

2. Value Added Tax:

Value Added Tax (VAT) is a type of consumption tax that is levied at every stage of production. At each stage, the value of the good or service is increased. This increase, the "value added", is taxed. The great thing is that as a business owner, you can reclaim any VAT you paid in the production chain. Only the final consumer has to pay out of pocket.

Typically, VAT works like this: You pay a certain amount of VAT to other businesses that help you make your products. These small amounts of VAT are called "input tax," and you'll get a credit for each input tax you pay.

Every sale you make on Amazon has the appropriate VAT rate added to the transaction. The customer pays the tax to you.

At the end of the season, once you've collected VAT from all your customers ("output tax"), you're ready to send the VAT to the government. But first, you deduct any input tax from the total so the money is in your pocket.

3. Goods and Services Tax:

Goods and Services Tax (GST) is also levied at each step of the supply chain. However, unlike VAT, GST is charged regardless of the value added. It is usually just a fixed percentage of the transaction.

Typically, the way GST works is this: businesses are charged at each stage of the manufacturing process and the end customer is charged at the point of sale. The GST is then refunded to everyone (except the end user) through tax credits.

In general, Amazon China stores need to pay taxes. If they are overseas, then they do not need to pay taxes because it has nothing to do with the domestic situation. In fact, if you have to pay taxes, there are only the above three types. However, not having to pay taxes still increases everyone's profits.

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