Introduction.
Cross-border e-commerce (E-commerce) has been expanding worldwide with Amazon, eBay, Rakuten, Shopify, WooCommerce, and Corona Vortex, and is now the focus of attention by all companies. Cross-border e-commerce has been introduced with the positive aspects of being able to start selling within minutes of creating a site, and new sales opportunities from markets around the world. On the other hand, local taxes and various other costs are not shared much: local taxes such as VAT are levied and collected by the seller on the local buyer, but even in the case of cross-border e-commerce, there are cases of taxation, collection, and reporting.
Not all tax accountants, lawyers, and other domestic professionals have knowledge of overseas tax and legal affairs.
IN THIS COLUMN, OPTI CORPORATION, WHICH HAS EXTENSIVE EXPERIENCE IN THE TAX ASPECTS OF CROSS-BORDER EC, PROVIDES A "CROSS-BORDER EC TAX NAVIGATOR" IN A Q&A FORMAT. WE HOPE THAT THIS CROSS-BORDER EC TAX NAVIGATOR WILL BE OF HELP TO VARIOUS COMPANIES CONSIDERING CROSS-BORDER EC.
Q] What is EORI registration?
A]
EORI number is an abbreviation for Economic Operators Registration and Identification, and is called an operator registration and identification (EORI) system. We can obtain an EORI number on your behalf.
THE EORI NUMBER CONSISTS OF A TWO-LETTER ALPHANUMERIC COUNTRY CODE FOLLOWED BY 14 OR 15 DIGITS AND ALPHABETIC CHARACTERS. THE EORI NUMBER REDUCES THE BURDEN ON BUSINESSES BY FACILITATING IDENTIFICATION AND COMMUNICATION BETWEEN CUSTOMS AUTHORITIES DURING CLEARANCE PROCEDURES, THEREBY ENABLING FASTER AND SMOOTHER PROCESSING OF PROCEDURES.
BUSINESSES WITHIN THE EU MUST OBTAIN AN EORI NUMBER FROM THE CUSTOMS AUTHORITY OF THE MEMBER STATE IN WHICH THEY INTEND TO OPERATE. NON-EU BUSINESSES THAT WISH TO FILE CUSTOMS DECLARATIONS, APPLY FOR AEO, OR APPLY FOR SIMPLIFIED CUSTOMS PROCEDURES IN THE EU MUST ALSO OBTAIN AN EORI NUMBER FROM THE CUSTOMS AUTHORITY OF THE FIRST MEMBER STATE IN WHICH THEY INTEND TO OPERATE. BASICALLY, A BUSINESS MUST APPLY FOR AN EORI NUMBER BEFORE COMMENCING BUSINESS.
IN ADDITION TO OBTAINING A VAT NUMBER, WE CAN ALSO OBTAIN AN EORI NUMBER.
A VAT NUMBER IS A TAX DECLARATION ("CONSUMPTION TAX DECLARATION" IN JAPAN), SO IT MUST BE FILED ON A REGULAR BASIS. EORI REGISTRATION, ON THE OTHER HAND, DOES NOT REQUIRE ANY SPECIAL DECLARATION.
FOR THIS REASON, IF YOUR COMPANY IS CONSIDERING EXPORTING TO EUROPE OR UK, WE RECOMMEND THAT YOU FIRST OBTAIN THE CERTIFICATE AS SOON AS POSSIBLE.
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This column contains general information only and is intended to be used at the reader's own risk. While every effort is made to improve the accuracy of the information, it may contain inaccuracies. Readers should consult a suitably qualified professional before making any decision or taking any action and assume the entire risk and responsibility for any loss arising from the use of this column.
