Amazon’s tax policy has been updated again. You must have an invoice...

Taxes have always been a concern for sellers, and every change in tax policy is equivalent to taking away a portion of the sellers' existing profits.

Especially now that VAT has been implemented in Europe, the sellers who survived have already sacrificed their profits to pay taxes, and any further tax actions would be fatal.

A British student seller in our group raised such a tax issue raised by Amazon.

This newly updated invoice policy requires sellers to provide a valid VAT invoice for each order from Amazon Business buyers. Even if VAT is not required, a receipt must be provided for each business order.

Business buyers may be rare, and some new sellers have never even seen a business buyer. Amazon's B2B project was launched in 2015 to facilitate transactions between business buyers and sellers. Business sellers can set up special bulk purchase discounts, and business buyers can inquire online and even settle payments with invoices (PBI).

▲Enterprise seller page

▲Orders from corporate buyers

Back to the new policy, when sellers receive orders from corporate buyers, they must provide them with a VAT invoice within one day (a receipt is required if no VAT is required).

At present, only sellers on the European site are subject to this new policy. Sellers on other sites do not have to worry about VAT issues for the time being.

So for sellers on the European site, should they use the “ free Amazon VAT calculation service ” given in the email?

First of all, Amazon is currently free of charge for this service. If corporate buyers use this service, they can directly download the required invoices from their own accounts. This way, they don’t have to contact the buyers through messages every time to send invoices and receipt documents. This will be very convenient for stores where corporate buyers account for a large proportion.

At the same time, if the company does not have many orders, I still recommend that you file your own tax return and send the invoice PDF to the customer. Because if you use Amazon's VAT calculation service, all amounts are automatically generated and cannot be modified, while if you file your own tax return, there is a certain amount of room for operation, and the tax saved is profit.

Here is a reminder for potential European sellers: if you have activated the Pan-European plan and lack VAT in any of the countries, you cannot use this calculation service.

Taxation is no small matter, especially since Amazon Europe is now completely under government supervision. You must be careful with any tax-related actions. You can choose whether to use this service according to your own situation. If you have any questions, you can add my WeChat and chat with me privately~