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Amazon tax deferral strategy

2021-03-17 43
Deferment has always existed, just because in the past, the tax package channel of logistics companies already included tax in the freight and collected logistics costs. Therefore, its existence basically requires the logistics company to understand the operation, but with The abolition of the threshold in the UK and the direct withholding and payment of the platform have brought tax deferral to the agenda, and it has become a tariff model that many sellers urgently need to develop!

There is a difference between deferred and tax package

For example, if a batch of goods enter LGG in Belgium, the duty of the goods will be collected in Belgium, but because the goods are sold in Germany, the goods will be cleared from Belgium, and the customs clearance agent will apply for tax deferral with the tax bureau. Explain that this batch of goods is not sold in Belgium, but sold in Germany. Therefore, after the goods enter Germany, VAT will be paid, but this VAT cannot be deducted. This is the normal European deferral mode.

But many freight forwarders will turn the goods in the middle. VAT will no longer be paid. If it is found, it will be fine to lose the tax number. So the value-added tax will be zero and the sale will be made. This is the so-called European tax package (of course this is gray, and it is also the most popular seller in the past to choose the freight model).

The tax deferral in the United Kingdom is due to the Amazon platform withholding and payment. After the goods are cleared into the UK, the customs will have to pay DUTY and VAT once. After the goods arrive at the FBA warehouse, the platform will deduct the VAT again, which will result in double collection.

For the repeated collection, you can open a CASE to the AMAZON customer service and provide the C88 file that has already paid the tax at the customs. The AMAZON platform will refund this part of the tax to the seller, but there may be 1-3 months in the middle. Therefore, many sellers Now they will ask logistics companies to help their goods deferred at the customs. DUTY will continue to be paid at the customs, but VAT will not be paid, but will be deducted by the platform.

Why is it deferred?

1. When there is no delay and the goods enter the customs, the value-added tax needs to be submitted once, and the platform also needs to collect the value-added tax once, which makes the seller pay the value-added tax twice.

2. Open a CASE to the platform to return the customs value-added tax, but if you apply for the return many times for a long time, Amazon will think that your account has some possibility of tax evasion, which may affect the account.

3. After a long-term low declaration, the customs will pay attention to the tax number and will focus on checking these tax numbers, which forces the seller to increase the proportion of tariff expenditures invisibly.

The deferral is currently only suitable for Amazon FBA, and other platforms cannot meet the policy for the time being, because currently only the Amazon platform and the tax bureau system have been docked. Although eBay has also been docked with the system, most of the eBay goods rely on overseas warehouses. But the overseas warehouse is not connected with the customs, so the tax deferral cannot be completed.


Amazon tax deferral strategy


Risk of deferred failure:

1. At present, there are feedbacks from sellers that only using VAT and EORI certificates can be successfully deferred, but this is risky. The logistics company will find the corresponding person or organization in the destination country and provide it. Once the customs sees this model Contacts receive customs clearance from too many people or organizations, attracting attention, which will increase the possibility of deferred failure.

2. Due to the frequent discovery of the first situation recently, the customs is increasing the intensity of random checks on the authenticity of the deferral, and the risk of deferred failure is also increasing.

3. Make sure that the information provided is all consistent: the effective time of VAT and EORI, the compliance of the number, legal person, address, etc., all correspond to one by one
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