Further to our report yesterday. It seems Amazon have sent out a second letter warning Chinese sellers to register for VAT.
This news article on was published on the 1st November 2016 on Chinese website www.ebrun.com.
We’ve used Google to tranlate it:
Amazon second letter VAT warning letters you received it?
Yesterday, many sellers reflect receive Amazon message, the second official warnings need to register VAT. Compared to the first reminder VAT registered, the Amazon’s attitude is more like the last notification: VAT registration is imperative, the platform is likely to close the VAT regulations do not meet the HMRC account.
We analyze the content of messages, Amazon express what information:
1, the United Kingdom (UK) value added tax (VAT) further regulations came into effect on September 12, 2016. The new Act came into force, which means that the UK’s Revenue and Customs (HRMC) have a greater right to dispose of overseas sellers to evade VAT, VAT compliance check has begun, your VAT job done right, it is sufficient to deal with inspection;
2, if the Royal Tax and Customs (HMRC) believe a seller may exist non-compliance, Amazon seller account data need to be selected in accordance with the requirements to disclose.
What is the situation of non-compliance? The first is not yet registered VAT, Amazon has said that the first reminder: June 30, Amazon’s British Grand Prix seller must submit a VAT tax number in the background, otherwise it would not rule out the risk of facing title; followed by a VAT registered but did declaration has been made or done zero reporting, underreporting sellers; in addition, each VAT tax ID information requires a consistent and sellers Amazon account information so that multiple accounts sharing with a VAT tax number not only illegal, but also may lead to an account associated with so do not borrow another VAT tax number; in addition, the use of false heading clearly is non-compliant.
3, HMRC can now issue a notice to the Amazon store. That is, HMRC can not seek to inform the implementation of the Amazon seller list, and the right to turn off corresponding to the Amazon store. At the same time, HMRC the right to request platform jointly and severally liable. In order to avoid hefty fines may cause joint and several liability, Amazon seller inevitable combating tax avoidance.
4, in order to avoid illegal VAT account is disabled due to the risk, the seller should take appropriate action as soon as possible. VAT registration has not been completed, you should promptly consult a tax official, as required;
5, should be entered in the VAT code available immediately to the seller Amazon seller account information in a timely manner to the Amazon filing VAT, the VAT does not provide information to avoid being in the background HMRC action.
In fact, China’s Amazon sellers VAT really worry about nothing more than two points. The main thing has been the low-cost advantage will be deprived of, worried about the situation of decline in cross-border transactions. But this, sensible seller said, although the tax compliance of the pain, but the industry can take to eliminate the price war atmosphere, clean-up of cross-border electricity supplier has long accumulated tax issues, helps the internationalization of Chinese brands. Another point of concern is that if the VAT is not compliant, really lead to the account being closed, which is the seller want to see the solution as soon as possible by the VAT is still regulatory compliance operations.
It is reported that most of the British Grand Prix is already underway VAT registered seller and subsequent tax returns in this small series to remind the seller to protect their VAT accounts, industry sources told Tracy: If freight shipments heading VAT borrow seller, the seller C79 proceeds big tax bills, but a small quarter sales of items when reporting, it may be the Inland Revenue Department came to the door.
But not before VAT registered seller, not only during the peak season to be grappling with may be checked, but also distracted to register, as performed earlier.
VAT is a popular trend, Amazon is also committed to move more compliance-oriented platform. The seller should pay attention to this matter, because if you neglect cause really account was closed, it was a rude awakening.