由 caicai8478 With the implementation of new tax policies in major global e-commerce markets (such as the EU, UK, and US), online platforms like Amazon and eBay have been given the responsibility of withholding and paying VAT/GST/sales tax. For many sellers, this seems to mean “liberation from tax compliance”—the platform calculates, collects, and pays taxes for them, and they can finally relax.
This is actually an extremely dangerous misunderstanding.
Platform withholding and payment does not exempt sellers from their compliance obligations; instead, it shifts the focus of compliance from “calculation and payment” to more complex and critical areas. Proactive compliance is no longer an option, but a necessity for survival and development under the new rules.
I. What Does the Platform Withhold and Pay? — And Its Limitations
First, we must clearly define the boundaries of the platform’s responsibility.
What Does the Platform Withhold?
VAT in the Transaction Process: When a consumer places an order and makes payment, the platform directly calculates and collects the VAT payable from the consumer, and then remits it to the tax authorities. Main Scenarios: Sales to individual consumers (B2C) in the EU/UK; sales tax in some US states, etc.
Platform Limitations (i.e., what does it “not withhold”?)
Import VAT Clearance and Deduction: The platform is not responsible for import VAT incurred when goods enter customs territories such as the EU. Sellers still need to clear customs with their own tax ID and obtain supporting documentation for subsequent deductions.
Inter-company Transactions: For purchases made by business buyers (B2B) with valid VAT numbers, the platform typically does not withhold VAT. Sellers must comply with the reverse taxation mechanism, issuing compliant invoices and filing declarations themselves.
Tax Registration Obligations: The platform will not apply for a tax ID for you in the relevant countries. Whether you need to register for a tax ID is entirely your own responsibility.
Tax Filing Obligations: This is the most crucial misconception! The platform may have paid the taxes on your behalf, but the obligation to file the tax return still rests with the seller. You still need to submit accurate VAT returns to the tax authorities regularly (monthly/quarterly).
II. Why is Proactive Compliance Essential? Five Key Reasons
Under the withholding tax system, a seller’s proactive compliance is primarily reflected in the following five aspects:
Reason 1: The Cornerstone of Tax Filing – Data Accuracy and Consistency
The data withheld and remitted by the platform is one source of information for your tax filing, but not the only one.
Your Responsibility: You need to integrate the platform’s transaction reports (such as Amazon’s VAT Transaction Report) with your own import data, B2B sales data, and sales data from other channels to generate a complete and accurate tax return.
Risk Point: If you directly submit the aggregated data provided by the platform, ignoring import deductions or other adjustments, it will lead to errors in the tax return. If the tax authorities find inconsistencies when comparing the data (e.g., the platform withheld €10,000, but you only declared €8,000 in sales), it will immediately trigger an audit, fines, and investigation.
Reason 2: The “Key” to the Import Process – Input Tax Deduction Rights
Import VAT represents a significant cash outflow for sellers, and the right to deduct it is in your own hands.
Your Responsibilities: Use your own VAT/EORI number for customs clearance and properly keep all import customs documents (such as C88 and EORI clearance records).
Risk: If you cannot provide valid import documentation, you will not be able to deduct this input tax. This means you are forced to bear a tax burden that you should not have borne, equivalent to a direct loss of profit. In the era of platform withholding, if the tax on the sales end is deducted, and the tax on the import end cannot be deducted, your profits will be squeezed twice.
Reason Three: The “Passport” for B2B Business – Reverse Taxation and Compliant Invoices
For businesses dealing with corporate clients, compliance directly affects your reputation and orders.
Your Responsibilities: When a corporate buyer provides a valid VAT number, you need to:
Collect 0% VAT at the time of sale (subject to the reverse taxation mechanism).
Issue a compliant invoice/receipt containing complete VAT information for both the buyer and seller.
Risk Point: If you mistakenly allow the platform to withhold taxes for B2B orders, the business buyer will be unable to claim input tax, potentially leading to refusal to pay or refund requests, severely impacting B2B business operations.
Reason Four: A “Litmus Test” of Business Identity – Avoiding Associated Risks
The platform’s withholding and payment behavior is based on its assumption that you are a “non-local company.” Proving this requires your proactive compliance.
Your Responsibility: Accurately fill in your company information, location, and VAT registration numbers for each country in the seller backend.
Risk Point: If you haven’t registered for VAT in a country where you have inventory, the platform cannot identify your compliance status and may suspend your selling privileges until you provide a tax number, considering its own risk. Your passive compliance directly leads to business interruption.
Reason Five: A “Guardian Ship” for Global Strategy – Beyond Platform Dependence
Completely entrusting your taxes to a platform is tantamount to handing your fate over to someone else.
Your Responsibility: Establish an independent, enterprise-level tax compliance system covering multi-platform, multi-country business.
Risk Points:
Platform Policy Changes: The scope and rules of tax services on platforms may be adjusted at any time.
Multi-Platform Operation: If you sell simultaneously on platforms such as Shopify and Walmart, their withholding policies may differ, requiring you to consolidate and file unified declarations.
Data Security: You cannot rely entirely on platform data backups; you must maintain your own independent financial and tax data records.
III. Seller Proactive Compliance Action Checklist
Registration First: In any country where you have inventory (including FBA/overseas warehouses), register for a tax number before shipping and warehousing.
Self-Managed Customs Clearance: Insist on using your own VAT/EORI number for formal customs clearance and permanently retain all customs clearance documents.
Data Integration: Regularly download platform transaction reports and verify them against your import data and B2B sales data to ensure the completeness and accuracy of the basic data for declaration.
Timely Declaration: Regardless of whether there are sales, you must submit a VAT declaration form before the deadline.
Information Maintenance: Ensure that the company information and tax number information entered in the seller backend of all e-commerce platforms are accurate and up-to-date. In conclusion, platform-based withholding and payment only changes the tax collection process; the responsible party for compliance remains unchanged. Far from simplifying compliance, it places higher demands on sellers’ tax management capabilities—upgrading from simply “calculating and paying taxes” to proactive management of the entire data chain, multi-stage coordination, and cross-platform integration.
In this game, the platform plays the role of a “cashier,” responsible for collecting money from customers and handing over the tax portion to the government. But you, as the business owner, remain the “shopkeeper” responsible for bookkeeping, tax filing, and dealing with government audits.
Proactive compliance is no longer about dealing with tax audits, but about protecting profits, maintaining operations, and building the foundation for the company’s long-term development.