Is Amazon going to charge tax on this now?

In September, sellers on Amazon Europe

When everyone is busy with VAT

An official message from Amazon was buried underneath

Recently, sellers on the European site have finished VAT.

The back foot is still preparing for the peak season

But I found that there was an extra fee in my advertising expenses.

This news was resurfaced.

European sites are going to charge taxes on in-site advertising!

▲Original text of the notification email in September

First, the email content said that the deadline was October 1st.

The sellers and Amazon European Services will sign

Sponsored Ads Agreement, Amazon Advertising entities transferred to the EU

VAT will be charged on the payment

On the surface, this operation is just a transfer of the subject of the agreement.

The content itself has not changed

But in fact, the EU has tightened its tax policy on Amazon.

Items that were originally exempt from tax will be punished later.

VAT in European countries is only the most basic operation in this link

The next step is to pay various taxes and fees.

As we all know, most European countries have extremely generous social welfare.

The basis behind it is not how developed the country is

But an extremely high and complete tax system

The four countries with the highest tax rates in the world are all from Europe

Most European countries face high-income populations

The income tax rate is over 50%.

This is why Europe took the lead in implementing tax measures on Amazon.

Therefore, the advertising fee tax is implemented this time.

Just a small step for the EU to close Amazon's tax loophole

I believe there will be more and more taxes in the future.

To "rob the rich and help the poor" on Amazon

But this tax ultimately falls on us sellers.

At a time when black technology and fake orders have been severely cracked down by platforms

In-site advertising has become the most important means of operation for sellers

Therefore, the sellers on the European site have to pay this money.

So Alice has always emphasized that we should not blindly engage in price wars.

Profit is actually our sellers' response to various emergencies

Best buffer space

Whether it was the increase in logistics costs caused by the United States’ withdrawal from the Universal Postal Union

Or is it that this time the in-site advertising will be taxed?

The impact is on sellers with very small profit margins.

When the few profits are eaten up by unexpected costs

When you have a lot of goods and lose money, you really want to cry but have no tears

That’s why Alice is involved in the project

We must strictly control the product profit margin of 40%

Such profit margins allow Alice to deal with emergencies

And discount promotions can still be handled with ease

The advice I give you today is the same as before.

The crooked way of fake orders with black technology has come to an end

Here comes the era of high-profit boutique operations

Friends who want to get platform information as soon as possible

Scan the QR code to join our seller exchange group

Platforms huddle together for warmth in the cold winter

Live, have a future

Source: Cross-border Business School

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