Selling in US from Europe | US Taxes for Overseas Sellers | Pricing Structure | VAT | Help to understand the structure!
Hello guys,
I would like to ask regarding US tax for overseas sellers on Amazon. It is very difficult to understand from what I have found online so thought will ask in the way I understand it 
I am VAT registered in Germany and have a limited company. When I sell a product in Europe, I charge ±20% of the VAT and 15% of profit tax.
Now I want to sell goods in US market. I will store and fulfil them through FBA. I understand that there is no VAT in the US so not sure what my pricing structure should be and what additional charges can occur.
- Let’s say that I am selling a product for 100, so in Europe, I would pay 20% of the VAT and 15% from profit.
a) If I sell this product in the US, what happens with VAT? I would import goods from China to the US.
b) What fees would I face selling the product for 100$ through FBA in the US?
c) If I don’t pay VAT, will I still have to pay it in Europe from sales I made in the US? I found that there is something about double tax so not sure what it means.
I am sorry if it sounds unprofessional and I believe that it is more complex from how I ask it, but for me, it would be a great starting point to understand from my point of few.
Appreciate your time and answers!
7 replies
Seller_QlN0mmCAFPtjZ
Firstly it is possible that you may get varying answers here on the forum , so it may be best to consult with a tax specialist that has international experience .
Regarding double taxation . There are agreements between certain countries to avoid double taxation . So lets say you are a German citizen and pay income taxes in Germany . You than decide to sell in the USA . Provided there is a double taxation agreement between Germany and the USA , you will than only be taxed in your home country for income tax . This only refers to income tax . Other taxes like general sales tax , vat , duties etc you will still be liable for in the country that you are making the sale in .
Seller_7l3ef6gH7v0cN
I too have been overwhelmed so just signed up to Amazons programme for them to do all that for you. Think it’s like £500/annum and don’t have to worry about or understand it. Naive perhaps.
