Heartbroken! The seller was rejected in the second review, and encountered a major change in European VAT!

Heartbroken! The seller was rejected in the second review, and encountered a major change in European VAT!


During the Qingming Festival, Amazon suddenly launched a large-scale account sweep, and many sellers triggered the second review. As for the cause of this second review, sellers can also click "Qingming Festival tomb sweeping turned into account sweeping, a large number of accounts were second-reviewed and turned into third-review!" to learn more.

 

The number-sweeping storm was like a strong tornado. After the storm, all that was left for the sellers was a mess.

 

It is said that after the storm there will be a rainbow, but the sellers did not welcome their own rainbow, but became more distressed. Recently, sellers who have just gone through the second or even third review are puzzled. How can they successfully pass the second review?

 


Amazon's second review is becoming stricter and the pass rate is low


In order to pass the second review and restore their accounts to normal, the sellers have tried their best. They have all kinds of bills and information, and with the determination to pass the second review, they have sent relevant emails to Amazon.

 

However, what the sellers never expected was that the difficulty of the second review was escalated, and Amazon did not even approve the real information.

 

Some sellers raised questions in the forum: Is the second review stricter this time, or is Amazon determined to reject some people?

 

The picture comes from Zhiwubuyan

 

The seller said that he asked his fellow seller friends, but none of those whose numbers were scanned have passed so far. The service providers who had been very confident that they would pass in the past are not sure that they will pass this time.

 

At the same time, the seller added: I think the second review is just Amazon's decision based on its mood, because my real information and invoices did not pass before.

 

Although the sellers’ anxiety is understandable, Amazon is not only targeting certain sellers. It is understood that many sellers also have their real information failed to pass.

 

Another seller whose account was blocked replied: I have a store that also had an investment link in August last year. It was easy to open the store, and then there was a second review. On April 2, there was a third review. I submitted the broadband bill, but it was rejected by Amazon immediately.

 

The seller's second-instance rejection email is as follows:

We reviewed the documents you recently provided, but found them insufficient to reactivate your seller account at this time. We were unable to verify the documents you provided. You will not be able to sell on Amazon while the review is ongoing.

 

How do I reactivate my account?

Please verify that you have a valid credit card on file and provide the requested document in .pdf, .png, .jpeg, or .gif format.

It is understood that in order to verify the true identity of the seller, improve the quality of the seller, and provide buyers with a good user experience, Amazon is currently tightening its second-instance review and other audits. Many real information submitted by sellers cannot pass, let alone through channels such as Photoshop-based billing and service providers.

 

In the seller communication group, every day a large number of sellers whose accounts have been blocked complain about the "miserable situations" after their accounts were blocked, such as the lack of an appeal button, the scrapped goods, and the heavy economic losses...

 

The picture comes from the seller communication group

 

The sellers have a lot of enthusiasm to make big business, but Amazon does not give them any chance. The sellers who are forced to wear Amazon's "mask of pain" have no happiness at all.

 

But the setbacks on the cross-border road are far from limited. Just after sellers experienced sluggish traffic in Europe and the United States for several days, an email about changes in value-added tax caused sellers to panic again.

 


Amazon will pay VAT in EU countries


It is learned that recently, many European sellers have received emails from Amazon notifying them of VAT changes.

 

The email shows: From July 1, 2021, 27 EU countries will implement new VAT rules on e-commerce sales, which will affect your sales of goods to EU consumers through online shopping malls (including Amazon).

 

The picture comes from the seller communication group

 

According to the email, starting from July 1, 2021, the European VAT will have the following key changes:



1. Amazon is required to collect and remit VAT on your B2C product sales on Amazon in the following circumstances:

  • The product is shipped from an EU address to an EU buyer, but your (the selling partner’s) company registered address is outside the EU;

  • Goods shipped directly to EU customers from non-EU addresses with a value of €150 or less are subject to specific customs and labelling requirements.

 

2. Small imported parcels with a value of no more than €22 are no longer exempt from VAT. From July 1, 2021, all imported e-commerce parcels will be subject to VAT regardless of their value.

 

3. The existing threshold for distance sales within the EU will be abandoned and the new threshold will be €10,000 , applicable throughout the EU. This does not apply to sales outside the country/region where your company is registered, nor does it apply to sales that Amazon needs to collect and remit VAT on.

 

4. The EU will launch an optional VAT declaration procedure called "Union One Stop Shop" ("Union-OSS"). With this simplified declaration procedure, sales partners whose registered addresses are in the EU can declare VAT uniformly for their distance sales throughout the EU in their member states.



It is important to note that these changes will not affect sales or deliveries of goods to B2B buyers in the EU, where current VAT reporting requirements in the EU will continue to apply.

 

However, this policy is like a "disaster from the sky" for cross-border sellers, hitting their small treasury head-on and causing their operating costs to soar.

 

Just four months after the UK’s exit from the EU, Amazon has extended its VAT payment platform to sellers on more European sites. As long as the seller does not ship to a country within the EU system and the total annual cross-border sales amount exceeds 10,000 euros, Amazon may directly deduct VAT.

 

As a result, sellers will face a cost increase of about 20% , further reducing their already tight profit margins. This change has inevitably caused complaints from sellers: sellers' costs have been increased invisibly, and Amazon can charge whatever tax it wants.

 

The picture comes from the seller communication group

 

Some sellers also believe that having the platform pay VAT on their behalf will increase product market prices, leading to a significant reduction in supply categories, and sellers will face more intense price wars.

 

The picture comes from the seller communication group

 

For sellers, whether to adjust prices or not directly affects the sales and ranking of products, and sellers need to make a careful decision. On the one hand, there is helplessness after the cost increase, and on the other hand, there is concern about sales after the price increase. I wonder how many European sellers will be troubled by this change.

 

Do you have any complaints about the recent series of "bad news"? Feel free to share your opinions in the comments section~



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