What is Amazon VCS? Amazon VCS Review

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Key Features

1. Automatically issue invoices for orders from buyers on European sites

2. Display the “Downloadable VAT Invoice” badge on the Amazon Business front desk

3. Display the price excluding tax on the details page

4. Generate VAT transaction report in the seller backend

Advantages

1. Automatic invoicing can easily cope with invoice policies, save time and effort, and prevent customer complaints, bad reviews and other account problems

2. Get exclusive badges to increase traffic and conversions

(1) Activating VCS can help sellers obtain the "Downloadable VAT Invoice" badge. Corporate and institutional buyers can filter on the B2B front desk to only display products provided by corporate sellers with the badge.

(2) Improve conversion rate: Using a VAT calculation service can show corporate and institutional buyers prices excluding VAT, compared to other people’s prices including tax, thereby increasing the chances of winning the buy box and thus improving conversion rate.

3. Generate VAT transaction report in the seller backend

VCS will provide sellers with VAT transaction reports. The entire report covers more than 90 items. In addition to the VAT information itself, it also has multiple uses.

(1) For tax declaration: including the order price including tax, tax, price excluding tax, VAT rates of various countries, return and invoice details, intuitively and richly solving your tax declaration statistics problems

(2) Display buyer’s tax number, name and other information: For important or large orders, you can learn about companies and institutions through VIES websites or search engines to develop marketing strategies

(3) Display the buyer's country: It can display European countries including the five major European sites and beyond, clarify the popular countries of the product and the potential for cross-border purchases, which will help to further develop the European market

How to Register

1. Upload VAT tax number in the background

2. Fill in the default address for the seller's self-delivery orders

3. Select VAT default and activation date

4. Complete the setup

FAQ

Q: Do I need a tax number from 7 countries to activate the VAT Calculation Service (VCS)?

A: No, as long as the country with FBA inventory has the corresponding tax number, it will do.

Q: Does VCS issue invoices for all orders?

A: Yes, the invoice will be generated in the buyer's "My Orders" and the buyer can download it if needed.

Q: After activating VCS, some customers still say that they have not received invoices. How to solve this problem?

A: If the customer says that he has not received the invoice, the seller can download it from the "Tax Document Library" in the background and send it to the buyer.

Seller's Story

FAQ

1. Is it necessary to activate VCS?

VCS is not mandatory, but if you want to use Amazon's B2B enterprise seller service, it must be activated;

2. When setting up VCS, what product tax rate should I choose?

Product Tax Code (PTC):

As a system default, after enabling Amazon VAT calculation service, the standard PTC (A_GEN_STANDARD) will be set as the seller's default PTC.

The Amazon VAT calculation service will always apply the standard VAT rate to your products in each country (for example, currently 19% in Germany and 20% in the UK).

If you want to change the default behavior and assign a different PTC, you can change the default PTC assignment defined by the seller in the tax settings, or set a PTC assignment at the offer level. PTC assignments at the offer level apply to individual offers and can be used to select a different PTC than the default PTC defined by the seller. PTC assignments at the offer level will take precedence over the default PTC.

3. After activating VCS, will it have any impact on my subsequent sales tax declaration?

Because the default self-delivery address is also the FBA warehouse address, when calculating taxes, you need to inform the tax agent to exclude the sales of the "MFN" part, otherwise the sales of the self-delivery part will also need to pay taxes. In fact, self-delivery does not need to declare VAT;

The tax calculation logic of VCS is that you have chosen to use the tax system of the destination country from the moment your Seller Central account has a verified VAT number in that country. This means that if a valid VAT number is available in the destination country, cross-border EU sales of goods to consumers (distance sales) will always be taxed in that country.

References

• 1. What is VCS? Introduction, advantages and registration process of Amazon VAT calculation service! : Sohu [cited on 2019-08-12T16:00:00.000Z]
• 2. What is the difference between Amazon VCS and VAT declaration? : atexun [cited on 2019-10-17T16:00:00.000Z]