How exactly does Amazon Europe do VAT/Packaging Law/WEEE/CE/EU Principal

Amazon Operation Strategy: VAT/Packaging Law/WEEE/CE/EU Director... How exactly is Amazon doing in Europe?!

July 7, 2023

The European market is huge and there are many opportunities for mining. What compliance matters do new sellers need to pay attention to in order to ensure smooth operation?

What are VAT, packaging law, WEEE, CE, and EU officials?Do I have to complete every compliance requirement?

I've heard that European compliance matters are complicated and expensive. What are some good ways to save time, effort, and money to complete compliance requirements?

What compliance requirements are required to operate different sites and sell various types of products in Europe?Why not go through the questions and answers below to see if all your compliance knowledge has passed?!

Q1 The seller Xiaoming wants to be a German site and store inventory locally in Germany. What does he need to prepare?

Q2 The seller Xiaoming wants to be a German site, store inventory locally in Germany, and sell electrical and electronic equipment products. What does he need to prepare?

Q3 The seller Xiaoming wants to be in the EU, only stores inventory in Germany, and sells products with CE marks. What does he need to prepare?

*The compilation of relevant laws, regulations, policies and registration requirements is for reference only, is not exhaustive, and does not represent Amazon's interpretation of relevant laws, regulations, policies, and registration requirements or legal or tax advice. If you have any questions about relevant laws, regulations, policies and registration requirements, please contact your competent authority or your legal and tax advisor.

Attention all European sellers!Complying with European VAT (VAT) compliance is the first step to ensure the smooth sales and long-term operation of your store. VAT registration, reporting and payment are essential. Simply put, if you generate inventory in the UK or EU, you need to apply for a VAT number in the country where the inventory is located.

Additionally, for different types of European sellers, different compliance requirements may also be required depending on the country of sale and the type of product. You can check the compliance matters you need to complete yourself through the images below:

*The above list of common situations is for reference only, is not exhaustive, and does not represent Amazon's interpretation and advice on relevant regulations and policies. If you have questions, we recommend that you contact your legal advisor.

So, what are the specific action requirements for these compliance matters?Xiaobian has compiled a compliance guide for different types of sellers, so stop and act!

VAT compliance that all European sellers need to know ✦

Registering a VAT ID is the first step for European sellers to complete tax compliance. You can complete your VAT compliance self-check through the following trilogy:

Account registration

Cooperate with a tax agent to submit the relevant information to the Inland Revenue Department to apply for a VAT number. After obtaining a valid VAT tax number, log in to Amazon Seller Central to submit the tax number.

Full declaration

The declaration includes not only sales records, but also EU position adjustment records, such as VAT returns, EU sales lists (ECL), Instrasta, and all locally required reports.

Pay your bill on time

Within the specified time, pay the corresponding tax according to the declaration.

✨ Note:

Currently, Europe implements a withholding payment system for some orders. In the tax calculation process, there may be taxes that have not been withheld and must be paid promptly by the seller; some overpaid taxes can be refunded accordingly.

Compliance issues German sellers need to know in particular ✦

German sellers should pay special attention. If you sell the following types of products in Germany, you must also complete compliance requirements such as the German Packaging Act (LUCID) and German Electrical and Electronic Equipment (WEEE):

German Packaging Act (LUCID)

If you sell packaged products in Germany, including primary packaging (that is, product packaging) and secondary packaging (that is, delivery packaging), you need to upload your LUCID registration number and verify it with Amazon in advance;

German electrical and electronic equipment (WEEE)

If you sell products subject to the Electrical and Electronic Equipment Waste Directive* in Germany, Amazon will collect and verify your WEEE registration number (WEEE-Reg. -Nr). Starting June 5, 2023, Amazon may discontinue some products that do not meet this compliance requirement.

*This Directive applies only to electrical and electronic equipment products sold in Germany, and sales of other categories of products are not affected by this Directive.

CE marking compliance that EU site sellers need to know ✦

EU site sellers take a look!According to EU product safety regulations (known as EU Market Regulation (EU) 2019/1020), if you sell CE marked products (such as appliances and toys) in the EU, you are required to have someone located within the EU as a product compliance contact (“EU Head”). If you sell CE marked products in the EU, but there is no EU representative, it is an offense.

✨ If you sell products with a CE mark and are manufactured outside of the EU, you need to ensure the following two points to meet the requirements of EU product safety regulations:

🔹 This type of product has a person in charge in the European Union;
🔹 Your CE marked product is affixed with the contact information of the responsible person. This labeling can be done on the product, its packaging, the parcel, or an accompanying document.

Q1 The seller Xiaoming is stored in Germany, and all products sold to other countries are shipped from German warehouses. Which countries does Xiaoming need to register for VAT numbers?

Q2 The seller Xiaowang sells electrical and electronic equipment products without CE marks in Germany and the UK, and stores inventory locally in Germany. What does Xiaowang need to prepare?