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Recently, a seller broke the news that Amazon's Prime Day in the United States in 2020 will be held from October 7 to November 3, 2020 , and will last for nearly a month. However, there is no way to judge the authenticity of this news, so the specific time of Prime Day in 2020 is still to be officially notified. Some sellers said: Even if the Prime Day date is confirmed, can we still hold on until the peak season arrives? Recently, a series of problems such as logistics price increases, logistics delays, warehouse overflows, delivery restrictions, out-of-stocks, delayed product listings, order plunges, and large-scale account linkages have been plaguing sellers. Who would have thought that the blows would come one after another, and recently sellers have deeply felt the new pressure brought about by Amazon's policy changes due to the UK digital tax and Austria's new VAT regulations . ▲ The picture comes from the seller communication group UK digital tax increases sales commissions, FBA fees, MCF fees Amazon released a statement saying: Due to the implementation of the UK Digital Services Tax, Amazon UK's sales commission, Amazon Logistics (FBA) fees, Amazon Logistics monthly storage fees and Multi-Channel Fulfillment (MCF) fees will increase by 2% to reflect this additional cost from September 1, 2020. This fee adjustment will not be retroactive, but from September 1, 2020, the above-mentioned fees will increase.
▲ Screenshot from seller backend news In short, the sales commission, FBA fees and MCF fees of sellers on the UK site will increase after September 1st. In fact, as early as early January, there were rumors that the UK would impose a 2% tax on technology companies in March. But Amazon didn't care at the time , saying it would only pass the charges on to sellers, although it acknowledged that this might hurt the interests of small businesses. From March to September, the seller will be late but not absent. After all, the sellers have taken all the responsibility... For sellers, the store’s gross profit will decrease again. In this regard, some sellers have done the math: the delivery fee of £2.27 will be adjusted to £2.32 (£2.27 + 2% = £2.32). This means that the delivery fee will increase by 0.3% - 0.4%, and the sales commission will also increase by this much. The gross profit will be reduced by 1%, and the gross profit of £10,000 will be reduced by £100, which means a loss of £1,200 in gross profit per year. In addition, some sellers have analyzed that: EU countries have always acted in unison, and although the UK has left the EU, the probability that subsequent countries will follow suit with digital service taxes is very high. Therefore, sellers on the European site should also be mentally prepared in advance. Austria welcomes new VAT regulations In the past two days, many sellers in the seller communication group said that they had received notification emails from Amazon: Please upload your Austrian VAT tax number on the seller platform immediately to avoid affecting your sales account.
▲ The picture comes from the seller communication group Amazon said in an email: According to the Austrian Digital Tax Act 2020, Amazon is obliged to share the identity and transaction data of sellers who sell goods to Austrian buyers with the Austrian tax authorities. This identity data includes the seller's Austrian VAT number. If you do not provide this information, Amazon may suspend your sales privileges in Austria. If you need to register for VAT in Austria, please upload your Austrian VAT number to the Seller Central before December 31, 2020. ▲ Screenshot from seller backend news The email states that the following types of transactions are subject to Austrian VAT and incur Austrian VAT registration obligations: • Your company is established in Austria and its annual sales of taxable goods exceed EUR 30,000; • Your company is established outside Austria and stores goods in Austria for sale to buyers; • You sell goods remotely from other EU countries to buyers in Austria and these sales exceeded EUR 35,000 in the current or previous year. In this regard, a German seller said: Most people in Austria shop on Deutschland, so the seller will have some orders from Austria. Although the order volume is not large, it is indeed exceeded according to Amazon's 35,000 euros, so they dare not ship it.
▲ The picture comes from the seller communication group In fact, in addition to the policy changes caused by the UK digital tax and Austrian VAT, many sellers on the US site have also recently received notifications that they need to upload Chilean tax numbers . Amazon pushed a notification in the backend last weekend, saying that the Chilean government has implemented a new tax policy, requiring Amazon to assist in collecting taxes on taxable overseas orders. Therefore, Amazon will start collecting taxes on all orders purchased by Chilean consumers starting this month (August 1). If the seller does not have a local tax number, the tax will be deducted according to the standard tax point of 19%.
In fact, Amazon does not have a Chilean site. If Chilean consumers want to buy products on Amazon, they need to buy products on other sites such as the United States and then have them delivered internationally. That’s why sellers on the US site will also be affected by this policy. How to avoid unnecessary VAT I remember that in early March, many sellers on the US site reported that Amazon required them to upload the French VAT number. In fact, all this stems from a policy of Amazon platform on logistics - Amazon Logistics Export. This means that as long as the product is sold to France, the French tax authorities will collect part of the VAT. So non-EU sellers should avoid this from happening and remember to "disable" this function in the background. How to disable: Sellers can click "Settings" - "Amazon Logistics" in the upper right corner of the background page, and then find the export settings to disable it. Directly closing may result in the loss of some orders from other regions that do not require tax payment. Sellers can edit the restriction list below the disable option and disable certain countries that require tax payment (such as all EU countries). Special reminder: Checking the country is equivalent to disabling it. Recently, Amazon's VAT team has been very active, contacting sellers by phone or other means to remind them to register and upload tax numbers for certain sites. Amazon has officially confirmed that if sellers do not respond to the case in a timely manner, it may restrict the seller's sales on the site and affect other sites, so sellers must pay attention. For FBM sellers who are not obliged to register for VAT, it is best to fill out the Tax Declaration. If this declaration is not filled out, there may be a risk of account suspension.
For sellers who need to pay VAT: ① If the seller already has a VAT number, it must be uploaded to the seller platform as soon as possible. ② If the seller does not have a VAT number, he/she needs to reply to the case as soon as possible and provide relevant documents (such as a contract signed with a tax agent). Amazon will record the information and extend the time for site restrictions. Text ✎ Xiyue/ Statement: When reprinting this article, the title and original text must not be modified, and the source and original link must be retained. |
