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New Brexit rules that Amazon sellers need to pay attention to

2021-02-01 63
Current politics is one of the compulsory courses for Amazon sellers, especially the new crown epidemic that has spread to the world since last year has caused rapid changes in the logistics and import and export rules of various countries. The UK officially leaves the EU on January 1, 2021, and sellers have new homework to do~ The future is unknowable, and it is the last word to prevent micro-duty. The partners in the UK-EU border trade are firmly seated and look at the new rules. Tips:

How does the Brexit agreement affect Amazon sellers?

The UK is now the third largest market in the European Union.

According to the "European Union and the United Kingdom Trade and Cooperation Agreement", the United Kingdom has the right to change the way VAT, customs and other taxes are collected for imported products from overseas (including the EU).

This new regulation will affect not only overseas sellers, but also all sellers.

Sellers who rush to register for VAT, postpone tax payment or reach an agreement with a customs broker may be hit hard.

At present, the impact of the Brexit agreement on sellers is reflected in:

1. VAT threshold changes

2. New tariffs based on "rules of origin"

Sellers' cost comes down to new content

VAT tariff

The UK applies the existing EU tariff rules to online sellers from non-EU countries. The requirements for sellers are the same, but the currency has been changed to British Pound Sterling. For details, please refer to GOV.UK.


New Brexit rules that Amazon sellers need to pay attention to



The EU will not start to adopt the new regulations for products from the UK until July this year (2021), but the UK has moved forward the effective date to January 1, 2021. According to the announcement issued by GOV.UK, after 23:00 (GMT) on December 31, 2020, the new regulations will apply to foreign trade within the UK and goods arriving at ports.

Have the sellers started to close themselves? Some use the "low tax rate declaration" (VAT flat rate scheme). The United Kingdom also announced that before July 2021, tariff reductions and exemptions for non-coordinated controlled goods will be given to importers to postpone the deadline for declaration, payment of tariffs and VAT.

However, the carrier cannot know whether the shipper or the buyer has declared or paid taxes. For freight drivers in the UK who have never experienced the entire non-EU tariff payment process, the complicated paperwork will undoubtedly cause delays.

To make matters worse, the mutation of the coronavirus in the United Kingdom has increased restrictions on passenger transportation in Europe. Especially during the Christmas stocking period, the five-mile truck queue on the Kent Highway makes logistics companies such as DPD try to avoid crossing the border. transport.

7 new VAT regulations affecting Amazon UK sellers

· Amazon (UK) increases the price of non-UK sellers by 20%;

·It is difficult for overseas sellers to compete with local sellers;

·Amazon (UK) erroneously raises the selling price of sellers who have accumulated VAT;

·Price changes cause search rankings to shuffle;

·Amazon (UK) began to impose prepaid duties and return deposits on buyers from the European Union, with a 60-day shutdown period.

· Consumers in the European Union are reducing their orders due to other online retail misleading about the delays and uncertainties of orders in the UK;

·The sales ranking will also be affected immediately, and sellers are forced to abandon or throw away the products that were once popular on FBA and MFN.

3 Brexit for sellers:

1. Business tax C-bit debut tips

Sellers engaged in the UK-EU border trade, remember to print the customs declaration form in large fonts, and put the white envelope with the packing list into the box before sealing. In this way, customs officials can quickly identify the price and tax of the goods.

Special attention should be paid to products priced below 15 pounds.

Avalara explained that gifts can be exempted from VAT.

If the tariff declaration is unclear or has stains that are difficult to identify, the packing list can verify whether Amazon has already taxed the goods.

So why take a long detour? Some sellers may maliciously declare small commodities as gifts to reduce tariffs. Some sellers will bypass Amazon and directly deal with consumers, VAT-free. The issue of tax evasion is not first heard of today, so why take the risk of delaying delivery?

Most of the goods with a price higher than £135 will go through customs and be taxed at the border. Posting the packing list outside the box can effectively avoid unnecessary troubles in customs clearance.

2. Keep the price at £135

If you are a local seller, try to avoid being paid or paying imported VAT;

Ensure that the price of the goods does not exceed £135;

The price of the split product (up to £135), including delivery, insurance, taxes and other costs;

Remember, VAT is levied in units of pieces, not per unit;

Suppose you want to send two items, or two parts of the same product, packing them in a box will exceed the limit of 135 pounds, so even if consumers place orders on the same day, they will have to divide them. Sellers can consider using environmentally friendly materials to reduce the environmental pressure caused by packaging.

You can consider the trick of long flowing water. Depending on the price of each unit of the product, the seller will reduce the cost of each product while reducing the number of products, and the delivery will be faster.

In the case of bundling goods of more than £135, the seller may be levied 20% more business tax by Amazon, but it will not be repeatedly levied by the customs.

Check the customs tariff rate (usually 2.5%), weigh the pros and cons between price reduction and customs clearance.

3. Persist in cross-border trade

As British luxury brands and retailers drift away from suppliers and consumers from the European Union, and vice versa, everyone is looking forward to the prosperity of the domestic market and hopes that foreign trade practitioners can adapt to Brexit. Change.

Most people may think that the complicated negotiations on the customs side are an incentive for companies to passively engage in cross-border trade, but this is not always the case. Some suppliers believe that it is not worthwhile to disperse goods to avoid high tariffs. On the other hand, sellers believe that consumers will be dissatisfied with products sold at a premium overseas and wear down consumers' trust and loyalty to the brand. But whatever the reason, many companies are waiting and watching to make way for new investors.

Amazon sellers who are willing to jointly deal with the new challenges of the UK-EU cross-border trade can also seize this opportunity to expand their user base.

Therefore, the Brexit agreement is already an arrow away. This article is just an introduction to the new cost collection of sellers. What kind of huge changes will this change bring to Amazon sellers? Xiaobian also wait and see.
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