As a cross-border e-commerce business, we often have to deal with customs when exporting goods. Especially under the general trend of Tax compliance in Europe, sellers often consult us about VAT number, EORI Number, IEN number, C79 document, C88 document... Today amber is here to help you understand these relationships and to help you understand them.

Value Added Tax (VAT) is a consumption Tax levied on the Added Value of goods and services in the EU. VAT is an indirect tax, as part of the sale price, paid by the buyer to the seller, but ultimately by the seller, that is, the "payable taxpayer", to the tax authorities. Under European Union law, To sellers entering the European Union through customs Tariffs and import value added tax are charged, Wait until the goods are sold to the merchant Refund of import VAT, And then based on the corresponding sales Collection of VAT on sales.

Why should we register for VAT?

1、Customs clearance needs: many sellers will think it is very easy to use double clearance channels, double clearance freight forwarders will use their own VAT number unified customs clearance, but you do not have import records of goods, can not prove the origin of goods, how to sell goods?

2、For invoice issuing: many buyers in Europe require invoice after buying things, and the invoice must have your VAT number;  

3、Requirements of the sales platform: The sales of the European website include tax. If the tax bureau finds that there are sellers who do not apply for VAT, Amazon will be jointly and severally liable.

EORI number is the abbreviation of Economic Operator Registration and Identification. In use throughout the Eu since 1 July 2009, this number is a required registration number for merchants carrying out import and export activities within the EU. One customs number for customs application in any country of the European Union.

Any eu country can apply for EORI, but A company can only apply for one EORI No.,If you apply for the EORI number in one country, other EU countries cannot apply again.

From 1 April 2019, Amazon complies with the legal requirement to implement the Warehouse Services Operator Due Diligence Scheme (FHDDS), which requires sellers to provide Amazon with IEN for all non-EU origin goods imported into UK warehouses,  seller submits the IEN number to the background within 240 days after the creation of the goods.

IEN full name Import Entry Number, which is generated when the goods are imported to the UK Customs clearance serial number, As long as the import customs clearance tax will be in the C88 file will have this code. The IEN number is unique, which also means that the former customs clearance based on the general trade mode, which adopted the double packet clearance tax, may not be able to provide the IEN number for each seller.

Explanation of IEN number from Amazon seller background

C88 The IEN number on the file

C88 is the bill of import value-added tax and customs duty issued by the customs to the customer for each shipment of goods cleared at the customs, and C88 is provided to the customer by the logistics company after customs clearance.

C79 is a tax declaration document, which is a monthly summary of import VALUE-ADDED tax cleared by customers. Every month, the National Tax Bureau will collect the address of tax agent reserved on the VAT, and the tax agent shall provide the C79 document to the customer, and the C79 shall be used as the basis for the deduction of sales tax when declaring.

C79 file