Europe has begun to strictly investigate tax payment, and sellers are facing tax collection and store closure...

At present, European countries have begun to strictly investigate tax payments and crack down on various tax evasion behaviors. This is another storm-like blow to sellers.

It is reported that the EU will propose a more extreme new tax framework, referred to as BEFIT. Sellers who do business in Europe should know that Europe has been strict in auditing tax payments before, and will conduct value-added tax (VAT) audits from time to time. This BEFIT is undoubtedly an upgraded version.

It is mainly aimed at companies across the EU, allowing the same things to be taxed across the EU, and after the tax is collected, the profits of each EU country will be distributed according to the national tax rate.

In addition, the new EU tax reform will also start collecting and paying taxes on behalf of platforms on July 1. Once a seller’s taxes are not compliant, the tax bureau can directly block the account.

A new tax payment system is about to be introduced, and European tax audits will be more stringent. A large number of sellers have begun to panic, fearing that they may be found out. Not only may they have to pay a large amount of taxes, but they may even lose their stores.

It is reported that some sellers have started to calculate the amount of tax they need to pay in England and Germany in advance to prepare for tax audits. It seems that this tax collection war will be very fierce, and sellers should be prepared in advance.

Once the investigation is carried out, the seller will undoubtedly face a "heavy loss". If the seller abandons the store, all the long-term efforts will be wasted.

I believe that cross-border sellers on the European site have more or less experienced the ups and downs of VAT in Germany, the United Kingdom, and Italy. Rounds of tax audits have made sellers anxious. It is understood that 90% of cross-border sellers have VAT problems. This time, Europe's tax collection is coming with great force, and a large number of cross-border sellers may suffer as a result.

Moreover, through cooperation with e-commerce platforms such as Amazon and eBay, European countries can have a detailed grasp of the tax data of cross-border e-commerce sellers, which can be traced back to a long time ago. At that time, sellers may have to pay huge taxes. Therefore, the editor reminds sellers to pay taxes legally, and compliance is also a good strategy for long-term development.

Europe

Taxation

title