Do cross-border e-commerce, commodity exports often have to deal with customs, especially in the European tax compliance trend, often sellers consult us about VAT number, EORI number, IEN number, C79 file, C88 file ...... believe that when you see these digital codes, small partners will be a "! It seems to have recognized the return of Yan" feeling, today the green circle to open the fog for everyone, hand in hand to teach you to understand these relationships.
1. What is VAT?
VAT (Value Added Tax), in the European Union, is a consumption tax levied on the value added to goods and services. VAT is an indirect tax that is paid by the buyer to the seller as part of the sale price, but is ultimately paid by the seller, the "taxable person", to the tax authorities. Under EU law, customs duties and import VAT are collected from sellers entering the EU through customs, and import VAT is refunded to the merchant after the goods have been sold, after which sales VAT is levied on the corresponding sales volume.
Why do we need to register for VAT?
1, customs clearance needs: many sellers will feel the double clear pipeline is very trouble-free, double clear when the freight forwarder will use their own VAT number unified customs clearance, but you do not have the record of goods imported to prove the source of the goods, which comes from the sale of goods?
2, for invoicing: many buyers in Europe, after buying things are required to invoice, and invoices must have your VAT number above;
3, the demand for sales platform: the European station sales are tax inclusive, if the tax office found that there are sellers did not apply for VAT, Amazon is responsible for the responsibility.
2. What is EORI?
EORI number is the abbreviation of Economic Operator Registration and Identification. Since July 1, 2009, it has been used in the European Union. It is a mandatory registration number for traders conducting import and export activities in the European Union. It is a common customs number for customs clearance in any country in the European Union.
Any country in the European Union can apply for an EORI, but a company can only apply for one EORI number, that is to say, if you apply for an EORI number in one country, you cannot repeat the application in other EU countries.
What is the connection and difference between the VAT and EORI numbers?
VAT number and EORI number are both necessary for cross-border e-commerce merchants to register when they start normal trade in EU countries. The EORI number is applied for at the local national customs office and is used for customs clearance of goods; while the VAT number is applied for at the local national tax office and is used for payment of customs duty, import value-added tax (VAT), and sales VAT tax declaration.
3. What is the IEN number?
As of April 1, 2019, Amazon is complying with the legal requirement to fulfill the Warehouse Services Carrier Due Diligence Scheme (FHDDS), which requires sellers to provide Amazon with an IEN for all non-EU origin shipments imported into UK warehouses, with an IEN number to be submitted in the back-office within 240 days of the seller's shipment creation.
IEN full name Import Entry Number import entry number, is the goods in the United Kingdom import declaration generated by a customs clearance water number, as long as the import clearance and payment of taxes in the C88 file will have this code. IEN number with uniqueness, which also means that before the use of double clearing package tax in accordance with the general trade mode of customs clearance, may not be able to provide IEN number for each seller.
Explanation of IEN number in Amazon seller's backend.
IEN on the C88 file
4. What is a C88 file?
C88 is the import VAT and customs duty bill issued by the Customs to the customer for each shipment cleared at the Customs, C88 is provided to the customer by the logistics company after the customs clearance.
5. What is a C79 file?
C79 is a tax return file that summarizes the import VAT that the customer clears each month. Each month, the UK tax office will summarize the import VAT for that month and send it to the tax agent's address reserved on the VAT. The tax agent should provide the C79 file to the customer and use the C79 as the basis for sales tax deduction at the time of filing the return.
Document C79
What is the connection and difference between C88 and C79 files?
C88 document is the customs import bill, C88 source customs clearance company, is the information provided by the customs clearance company.
Although C88 and C79 are two different documents, they are both very important and crucial information that directly affects the seller's data declaration and the checking of whether the import records are abnormal or not. Sellers can check whether there is any misdeclaration or misuse of the VAT number by checking the information of C88 and C79 files. If the two data are consistent, there is no problem with the information you have declared.
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