What is VAT? How to apply?

What is VAT? How to apply?
Photo by NEOM / Unsplash

1.VAT introduction

The full English name is "Value Added Tax", which is the after-sale value-added tax commonly used in EU countries, that is, the profit tax on the selling price of goods. The product needs to pay import tax. After the sale of the product, the seller can return the import value-added tax and then pay the corresponding sales tax according to the sales volume.

The scope of application of VAT tax codes is mainly Britain, Germany, France, Italy, Spain five countries, not all countries need to register VAT. If you want to sell products in which country, you need to register VAT in which country, and the VAT of each country cannot be common.

2.VAT application procedure

Take the UK station as an example: the seller's VAT registration is divided into two channels, one is online registration, and the other is offline mail registration.

▪️ online registration

Apply for HMRCGatewayAccount through the official website of the Tax Bureau, complete the registration, and declare through this Account in the future; The whole process of online registration can be tracked and queried, and you can also apply to join the Flat Rate Scheme and Annual Accounting Scheme. It is possible to apply for an EORI number at the same time to import the Amazon VAT declaration, but sometimes supplementary information is required, the tax office can mail the paper information to your address, and the process is a little slow. You can contact a professional for your quick processing.

▪️ offline registration

The paper form will be filled in and mailed to the tax bureau to complete the registration, and the VAT information will be sent to your GatewayAccount or mailbox, which you can use to declare tax. If the information is complete and accurate, the tax bureau will mail the paper VAT certificate directly to your business address, and then create a GatewayAccount on the official website of the tax Bureau according to the information on the certificate.