[Bookmark] Integration of Amazon Europe’s Compliance Policies (1)

Amazon Europe's Compliance Policy Integration (Bookmark)



· Preface** ·**

The consumption level of the people in the European region has always been visible, and the profit from selling the same products in the European region is also more considerable. This is why cross-border business in the European region has always been a concern. However, at the same time, the introduction of some compliance policies in the European region is also a problem that Chinese sellers have been paying attention to in their cross-border journey.

It can be seen that tax compliance has always been a major problem for European sellers. In the face of an increasingly standardized market, although it is a headache, sellers can only follow the rules and regulations, after all, the European market is still a delicious cake.

Let’s talk about the four core compliance issues:

▲ Tax compliance: EU and UK sellers must register for a European Value-Added Tax (VAT) number;

▲ Environmental compliance: German and French sellers need to register for the Extended Producer Responsibility (EPR) according to the type of goods sold;

▲ Business security: EU site sellers must comply with EU commodity safety regulations (GP);

▲ Product safety: EU site sellers also need to comply with the EU General Product Safety Regulations (GPSR).


#Tax Compliance: European Value-Added Tax (VAT)#

European Value-Added Tax (VAT) is a tax levied by European countries on consumer spending. Commercial transactions, imports, and the flow of goods between European countries/regions require the payment of European Value-Added Tax (VAT).

In order to meet tax compliance requirements, sellers need to understand the value-added tax policies of each country and pay value-added tax in a timely manner.

Part 1: When is it necessary to register for European Value-Added Tax (VAT)?

Registering for VAT is the first step for sellers to comply with tax regulations. Not all European site sellers need to register for VAT. Please note the following two situations:

▲ Wherever there is storage, VAT registration is required. In other words, self-shipping sellers are not required to register for VAT, but sellers using Amazon Logistics (FBA) or European overseas warehouses must register for VAT;

▲ VAT registration is required for sales to corporate buyers.

Part 3: Environmental Compliance: Extended Producer Responsibility (EPR)

Sellers in German and French sites need to register for Extended Producer Responsibility (EPR) based on the type of products sold. This policy aims to encourage sellers to minimize the environmental impact of their products as much as possible.

Under the EPR policy, sellers need to mark environmental protection signs on the products they sell and ensure compliance with environmental protection regulations at all stages of the product life cycle. This means that sellers need to ensure that the packaging and transportation of their products meet environmental standards, and that they are responsible for recycling, processing, or arranging for the recycling and processing of products after the end of their useful life.

Sellers in the German and French sites in particular need to pay attention to the measures taken by Amazon for multiple product categories, which have already been implemented or will be implemented soon:

▲ German site: Involves three product categories, of which the German Packaging Act came into effect on July 1, 2022, the German Electrical and Electronic Equipment Waste Directive (WEEE) will come into effect on July 1, 2023, and the Battery Act is not yet collected, but affected sellers still need to comply. The audit will begin on June 5, 2023. If sellers do not upload a valid registration number to the Amazon Seller Platform, they will not be able to sell non-compliant products.

▲France station: There are a total of 15 categories involved. If a valid registration number is not provided, Amazon will deduct and pay the corresponding EPR environmental protection fees on behalf of qualified producer responsibility organizations.

Note: In the coming years, new EPR regulations for product categories will come into effect on various Amazon Europe sites, such as the German disposable plastic law, and product categories may also expand.

Additionally, the same product may require registration for different types of EPR. For example, a charger with a battery sold to Germany would require registration for the following EPR categories: German Packaging Act, German WEEE, and German Battery Act.


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