FBA import taxes is for the customs duty that may need to be paid by the cross-border seller when selling goods to international buyers in FBA service.
In cross-border trade, each country has its own tax policy. When a seller sells goods to a buyer, if the origin of the goods is different from the place of sale, he or she needs to pay the corresponding customs taxes to the relevant tax organization according to the tax policy of the place of sale.
Here is a more detailed explanation of Amazon FBA import taxes.
FBA import taxes content
Commodity import tax
If the seller’s goods need to be imported from abroad to the destination country, then they need to pay import taxes and fees. Different countries have different import tax and fee policies, and sellers need to understand the policies of the destination country to avoid violations and fines.
VAT and Consumption Tax
In some countries, the sale of goods may involve taxes and fees such as VAT or consumption tax. Sellers need to understand the provisions of the tax laws of the destination country and pay the corresponding taxes in accordance with the regulations in order to avoid violations and fines.
Factors affecting FBA import taxes
In FBA services, the amount of duty is based on a variety of factors such as the country from which the goods are exported, the country from which they are imported, and the type of goods.
First of all, the tax policy of the exporting and importing countries is one of the most important factors affecting the FBA import taxes. Different countries have different import tariff rates and tax policies, and Amazon will also calculate the tariffs on the merchandise according to the tax policies of different countries.
Types of goods
Secondly, the type of merchandise also affects the calculation of tariffs. Different types of goods tend to have different tariff rates, and the level of tariff rates will also affect the price and sales volume of goods.
If the above content is not enough for you to better understand FBA import taxes, here is an article that can better help you understand:
How to Reduce the Cost of FBA Import Taxes
It is very important for sellers to reduce the cost of FBA import taxes. Here are some common methods:
- Choose the right importing country: when choosing the importing country for sales, you can give priority to countries with lower import tariffs, which can reduce the import cost.
- Optimize the logistics program: Reasonable arrangement of logistics plans to reduce the cost of logistics intermediate links is also a way to reduce tariff costs.
- Understanding tariff policy: timely understanding of the target country’s tariff policy changes, good commodity pricing and inventory planning, can effectively reduce tariff costs.
If you don’t want to just read these text interpretations, you can click on the video below to help you reduce the cost of FBA Import Taxes：
FBA import taxes issues need to pay attentions
When using FBA services, sellers need to pay special attention to the following issues:
- Understanding the target market: Before choosing the goods to sell, be sure to understand the policies, regulations and other relevant information of the target market.
- Accurate customs declaration: When making customs declaration, you should accurately fill in the information on the customs declaration form to ensure that you will not incur unnecessary costs or penalties due to omission or misreporting of information.
- Avoid embargoed goods: when using FBA services, you must avoid selling embargoed goods to avoid irreparable consequences.
Amazon FBA ocean freight taxes calculation
Amazon’s taxes, mainly including import tax, import VAT, sales tax, the specific algorithm and relationship are as follows:
- Import tax = customs duty (IMPORT DUTY) + import VAT (IMPORT VAT)
- Customs duty (DUTY) = declared value * product tax rate (different products, according to different tax rates)
- Import VAT=(Declared value+Head freight+DUTY)*19%.
- Sales VAT=(after-tax sales price/(1+tax rate)*tax rate)
- The actual payment of VAT = sales VAT – import VAT – other deductible amounts
All major Amazon sellers need to note that Amazon FBA provides great convenience in logistics services, but sellers need to understand the tax regulations of the destination country to avoid violations and fines.
Sellers can avoid tax issues by choosing the right shipping location, understanding the tax law regulations of the destination country, choosing the right product category and operating in compliance.