Understanding calculating taxes when purchasing from Amazon

Understanding Tax Calculations for Amazon Purchases

Amazon is globally recognized as a leading e-commerce platform, attracting users worldwide for their shopping needs. However, many Vietnamese consumers who hesitate to buy from Amazon have concerns about high taxes and fees. In this article, Basso will guide you on how to calculating taxes when purchasing from Amazon and shipping them to Vietnam.

Types of Calculating taxes when purchasing from Amazon

When shopping on Amazon, customers must bear various taxes and fees for their products to reach them. Let’s explore how to calculating taxes when purchasing from Amazon:

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1. Value Added Tax (VAT)

Calculating taxes when purchasing from Amazon VAT is applied to all items, with tax rates ranging from 0%, 5%, to 10%. Imported products generally incur a 10% tax, similar to many consumer goods in Vietnam.

Types of Calculating taxes when purchasing from Amazon
Types of Calculating taxes when purchasing from Amazon

Normally, domestic products and services such as watches, technology accessories, shoes, clothes, cosmetics, etc. are subject to a 10% tax when imported, except for some preferential products. lower tax rates. In particular, some exported goods have a tax rate of 0%, tax rate is 0% – 5% for some products and services.

2. Special Consumption Tax

This tax is only applied to specific restricted items like cars, tobacco, and alcohol. However, these items are typically not purchased on Amazon.

3. Import Tax

Import tax calculation is complex and varies based on the conditions when buying and importing goods into Vietnam. Each item has a different import tax rate, depending on its origin. Import tax also depends on the source and origin of the goods; products from Japan and China may have more favorable rates due to ASEAN-China or ASEAN-Japan agreements.

You cannot remember all the import tax tables, so every time you import goods you need to look up the import tax table.

How to Calculating taxes when purchasing from Amazon to Vietnam

The principle of taxes when purchasing from Amazon to Vietnam is as follows: Special consumption tax is calculated first, followed by import tax and VAT. The specific calculation method is as follows:

  • Special Consumption Tax = (Customs value of imported goods × Special Consumption Tax rate)
  • Import Tax = (Customs value of imported goods × Special Consumption Tax) × Import Tax rate
  • VAT = (Customs value of imported goods + Special Consumption Tax + Import Tax) × VAT rate

The customs value of imported goods includes the purchase price on the invoice plus international shipping costs.

Understanding Warranty Policies When Buying on Amazon

Amazon is one of the world’s largest e-commerce platforms, offering a diverse range of products. When purchasing electronic devices, watches, household items, etc., it’s crucial to pay attention to warranty policies. 

The warranty policies generally fall into two groups: 

Group 1: Products Sold by Amazon

If Amazon is both the seller and shipper, customers can enjoy Amazon’s warranty and return policies.

Each product has its own warranty and return policy, including the option for returns.

Group 2: Products Sold by Third-Party Sellers

Buyers should exercise caution when purchasing from third-party sellers, as quality and warranty policies may differ.

Evaluate the seller’s reputation, read customer reviews, and review the product’s warranty policy.

If the seller is an Amazon partner (“Fulfilled by Amazon”), customers can benefit from Amazon’s 30-day return policy.

Note: Not all sellers offer free warranty and returns within 30 days.

In conclusion, Bluefocusagency has shared a guide on calculating taxes when purchasing from Amazon. To minimize tax burdens, choosing a reliable address for quality goods is essential. Bluefocusagency.com is the most reputable unit specializing in Facebook Ads Dropshipping on Amazon. 

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