Amazon and other e-commerce platforms for overseas e-commerce will be implemented on behalf of the withholding and payment, many sellers came to ask the green circle, the United Kingdom is not the abolition of the 7.5% low tax rate!
Here, the green circle to tell you, the British tax authorities did not cancel the 7.5% low tax rate, just for offshore enterprises (Chinese sellers), the mainstream online platforms in the market are directly in accordance with the standard tax rate of 20% on behalf of the collection and payment, the main body of the British company or the United Kingdom individual operators are not affected, then the Chinese sellers need to continue to stay in the 7.5% low tax rate in the? Then, do Chinese sellers still need to stay in the low tax rate of 7.5%? What will be the impact of remaining in the low tax rate of 7.5%?
1, can not be returned to the import VAT, regardless of the standard tax rate or low tax rate, regardless of the platform has no collection on behalf of the payment, the import VAT is there, if you continue to stay in the low tax rate, the platform is still uniformly according to the 20% deduction, but the import VAT can not be deducted, so it is recommended that the use of their own VAT customs clearance and want to refund the seller friends apply for the exit of the low-tax rate.
2, can not enjoy customs clearance VAT deferral, continue to stay in the low tax rate can not enjoy customs clearance VAT deferral (Postpone VAT Accounting, referred to as PVA), if the seller applies for customs clearance VAT deferral, the seller in the import of goods to the United Kingdom, do not need to pay import VAT, but in the declaration of this part of the import VAT can be declared, this approach This is favorable to the seller's cash flow.
The process of filing tax returns and tax rate changes in the UK after Brexit
1, the United Kingdom low tax rate has not been canceled, the United Kingdom enterprise sellers and independent station of the Chinese sellers can still independently apply for 7.5% low tax rate to declare on behalf of the collection of the tax after
2. The platform will only deduct the sales VAT, not the input part. If there is any input VAT, the tax agent needs to apply for a tax refund from the tax bureau;
3. Self-delivery platforms with an order value below £135 have been implemented on a collection basis.
4. The platform will still require sellers to submit the bundled VAT number in the backend.
5、When clearing customs, you can apply for Postponed VAT accounting, abbreviated as PVA, to realize the import VAT is not paid and not refunded.
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