VAT (Value Added Tax) is similar to Japan’s consumption tax. An indirect tax that’s charged at the time of purchase of a product or service, also called value-added tax. EU Member States must implement this tax.
EIN (Employer Identification Number) is the U.S. Federal Tax Identification Number. A 9 digit number for sole proprietors, corporations, partnerships, and other business entities to file business taxes. This number is necessary to establish a business in the United States and also to qualify for any tax treaties.
VAT – To reclaim any eligible expenses which VAT was charged.
For UK based companies, VAT registration is required if business’ VAT taxable turnover is more than £85,000. However, you must register for VAT in the UK if you’re an overseas seller making your supplies as a business activity in the UK.There is no registration threshold in this situation.
EORI – Necessary to reclaim any VAT charged on importing costs
- You can receive an EORI number at the time of VAT registration
- At the time of import, you will receive a C79 related to the EORI number which was submitted. The C79 is required at the time of filing VAT as it will prove VAT payment at the time of importation.
- Take care when submitting the EORI number. In case you submit the wrong EORI number, the VAT payment will be recorded on a different importer’s C79.
EORI Number = “GB” + VAT number + “000” (E.g. GB123456789000)
You need it when submitting the W-8BEN
- Form “W-8BEN” is necessary for tax-exemption with the IRS
- If you don’t have a Social Security Number or Non-U.S. Tax ID you need an EIN number (ITIN)
Therefore, Amazon requires a Tax ID from the following Sellers:
- All Professional sellers
- Individual sellers that exceed 50 transactions in a calendar year, regardless of sales volume