Due to the inflationary environment in Europe and the United States, the severe international situation, and the repeated outbreaks of the epidemic, the trend of online shopping in Europe and the United States has slowed down, and Amazon has suffered huge losses for two consecutive quarters this year. Therefore, remedial measures such as raising membership prices, increasing logistics and transportation costs, and suspending dozens of warehouse expansion plans have been implemented to increase revenue and reduce costs.
This time, Amazon announced that it will adjust the VAT service fees in many European countries from October 1, 2022. However, this time it will not raise prices, but instead launch discounts with up to 30% discounts , in an attempt to attract more customers.
According to the introduction, Amazon VAT Services is a VAT compliance solution that allows sellers to manage their European VAT registration and reporting obligations through third-party tax service providers in up to seven European countries (the United Kingdom, Germany, France, Italy, Spain, Poland and the Czech Republic).
Specifically, Amazon’s new country -specific fees for VAT registration and VAT filing services will give sellers flexibility in choosing the number of countries and simplify the seller’s experience with these fees. If sellers submit applications to Amazon VAT services in five or more countries, Amazon will provide a 5%, 20%, and 30% quantity discount on VAT filing service fees for five, six, and seven countries, respectively.
Additionally, it is important to note that if you already use the VAT filing service, your current annual rate will be updated to the new fee, and you will be charged the new filing fee monthly starting in the October fee cycle.
It is reported that the standard VAT rate in different EU member states is different. It cannot be less than 15%, but there is no maximum value. For example, Germany's VAT rate is 19%; France's is 20%; Spain's is 21%; Poland's is 23%. VAT regulations in different countries are also different.
It is understood that this service can help sellers handle VAT compliance matters more easily and efficiently, including VAT registration /declaration, financial agency, free provision of UK and EU EORI numbers, Intrastat, EU sales lists, and all reports required locally, so that sellers have more time to expand other businesses.
It is not difficult to guess that this new policy is also a measure taken by Amazon to deal with the performance pressure of two consecutive quarters of losses. But at the same time, it is also beneficial to sellers, after all, the service fee has been reduced , and the profit margin has been increased accordingly.
Amazon Value-added service fee |
<<: Only three years after its establishment, DaMai has entered the IPO fast lane!
>>: Amazon decides to postpone new FBA delivery process
Zhang Kuo, president of Alibaba International Sta...
The UK FCA strictly supervises all financial serv...
eDirect International Logistics is a comprehensiv...
For many sellers, FBA fees have always been a maj...
Recently, the fast fashion cross-border e-commerc...
Cross-border logistics is constantly turbulent! M...
Compliance operation has always been an important...
Halston Heritage is a creator of American luxury f...
Verishop is an inspiring shopping site that specia...
Shopline was founded in 2013. It not only allows ...
According to a report released by Mars Petcare, a...
<span data-docs-delta="[[20,{"gallery"...
SellerXeed is an Internet technology company that ...
eBay launches new ReOpen Ready shopping section A...
Recently, Amazon's advertising technology com...