New tax developments in Germany! No one can escape this time...

Do you still remember the new VAT developments on the German site that I reported earlier? Amazon requires all German sellers to upload tax copies before March 1. If you missed it, click the link below to view it.

Just having a tax number is not enough!

Amazon Germany is about to close its stores again...

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Although most sellers who are ready to continue to make money in Germany have already prepared their tax numbers, there are still a small number of sellers who are still hoping for the best and come to consult Xiaofenshen

Do sellers on the German site who only ship goods themselves need to prepare a tax number?

Just recently, Amazon officially gave all sellers a definite reply via email.

This has finally settled the long-standing question of whether or not German delivery is subject to VAT. This is not only a requirement of Amazon, but also a regulation from the German tax authorities. After the VAT amendment bill was updated, the tax authorities have also issued documents on which sellers need to register for VAT and pay VAT.

Our Chinese sellers who ship their own goods are subject to the third category, "selling goods from a third place (countries and regions outside the EU) to German sellers/consignees". Sellers or agents are also required to pay value-added tax in accordance with regulations.

The "supply value tax threshold" mentioned in the second article is a tool used by many sellers to reduce tax costs. This threshold means that when selling goods stored in other EU countries (such as the UK site) to German buyers, if the annual sales volume does not exceed 100,000 euros, they can be exempted from registration and VAT (VAT registration is still required for the storage location)

This has led many sellers to use FBA warehouses in EU countries with lower tax rates, such as the UK, register local VAT and sell to Germany to reduce some tax costs. Xiaofenshen would like to remind UK sellers who do this that Brexit in March is a major event that you should pay close attention to, and the way Brexit is carried out will directly determine whether such operations are still feasible.

In the worst case scenario, if the UK leaves the EU without a deal, the goods sold to Germany as shown above may be subject to a second customs clearance, resulting in additional costs, or even unable to pass through UK customs. Sellers on the UK site need to make plans in advance to deal with these emergencies.

The taxation issue on the European site is something that sellers who want to make money here should not underestimate. If you do not upload a tax copy or even a tax number before March 1, Amazon will remove your sales rights. But having said that, anyone who pays the VAT, which can eat up at least 20% of sales, will feel bad.

Do you want to know a trick to avoid VAT?

Scan the code and I'll tell you