Save time and money with VAT Services on Amazon

Frequently Asked Questions

Overview

VAT Services on Amazon allows you to spend more time on your business and less on VAT. With VAT Services on Amazon, you complete VAT registration, filing and submission in Seller Central for just €400 per year. Amazon works with global tax service provider Avalara to provide this service in United Kingdom, Germany, France, Italy, Spain, Poland and Czech Republic.

VAT Services on Amazon does not support VAT filings in the country of your company registration.

VAT is a tax on consumer expenditure. It is collected on business transactions, imports and moving goods between European Union (EU) countries.

You may learn more about VAT on our VAT Resources page.

The annual price is €400 per country for your Amazon channel transactions. If you are required to be VAT registered in a VAT Services on Amazon supported country, your VAT registration number for this country is included as part of your purchase of one year of VAT filing services for this country.

VAT Services on Amazon per country fee covers:

- VAT registration number (if required)

- Monthly, quarterly and annual VAT filings as required by subscribed country

- Intrastat reporting

- EC Sales List reporting

- Locally required reporting, such as Spesometro in Italy

If you conduct business on other ecommerce channels, you need to upload off-Amazon channel data to accurately calculate your VAT due. The addition of off-Amazon data costs an extra €100 per country for one year.

You will be invoiced and charged your fee for VAT Services on Amazon on your primary EU marketplace account. The fee will be deducted as a “Miscellaneous Adjustment” against your existing balance.

If your home marketplace is the United Kingdom, it is our policy to convert the above product cost to Great British Pounds according to the exchange rate as published by European Central Bank here.

Price does not include government fees (ex. postage) or extra services purchases from tax agent.

Getting started is a four step process:

Step 1: Sign up. Add VAT Services on Amazon to your account from Seller Central.

Step 2:  Provide Information. Input information about your business and provide supporting documents. We adjust requirements to suit your need and reduce work.

Step 3: Setup account. Your Amazon channel transactions are automatically processes into a single report. If you conduct additional business off of Amazon, simply provide this information (additional €100 processing fee applies).

Step 4: Start filing. You approve all filings with a single click. We work with global tax solution provider Avalara to ensure complete accuracy.

How it works

If you are required to be VAT registered in a VAT Services on Amazon supported country, your VAT registration number for this country is included as part of your purchase of one year of VAT filing services for this country.

As part of VAT Services on Amazon, we work with tax agent Avalara who will guide you through the document collection and submission process in order to complete VAT registration. When you join VAT Services on Amazon, simply identify the countries where you are required to be VAT registered and subscribe. You will receive a VAT registration number for each country where you subscribe for filings.

If you import goods into the EU for onward sale you will generally be required to pay import VAT (and possibly import duty) to the tax authority where the goods are imported.  Please note you will be required to register for VAT if you store goods in an EU country. There are many ways to structure and pay import VAT, if you require more detailed advice we recommend you consult with a tax advisor.

You are responsible for meeting any VAT obligations that apply. Please refer to the VAT Resources page for additional details.


Tip: When selling in multiple Amazon European marketplaces, keep in mind that you may be liable to pay VAT to different countries and so may need to apply for different VAT numbers with different countries. Consult your tax advisor to help you understand your VAT obligations in the EU.

When selling products from one EU country into another EU country, you should be aware that the tax rate can be different from country to country.

If you store your goods in an EU country, you are required to VAT register in that EU country. Additionally if you transfer your own goods from one EU country to another, or if FBA transfers your goods from a fulfilment centre into another country where your products will be stored, the transfer may also be treated as a transaction subject to VAT.

You are responsible for meeting any VAT obligations that apply. Please refer to the VAT Resources page for additional details.


Tip: When selling in multiple Amazon European marketplaces, keep in mind that you may be liable to pay VAT to different countries and so may need to apply for different VAT numbers with different countries. Consult your tax advisor to help you understand your VAT obligations in the EU. 

With VAT Services on Amazon, your monthly routine is a 4-step process:

Step 1: Submit product information: edit your Product Tax File by the 3rd of the month

Amazon consolidates your Amazon marketplace transactions from the previous month: your Amazon VAT Transactions Report is ready for download on 3rd of the month

Step 2: [Optional] Provide your off-Amazon channel data: update your Additional VAT Report template by the 6th of the month

Tax agent prepares country specific filings for your review: your tax agent processes your data, consolidates reports and prepares your VAT filings in real time

Step 3: Review and approve your filings: simply click 'Approve' per country

Tax agent submits filings to tax authorities: no need for stamps, addresses or worrying about timelines

Step 4: Make your VAT payment: we show you how much and where to pay the VAT that you have collected – you just issue the payment

There are three steps to complete for VAT registration:

Step 1: Prepare your documents. Complete basic questions about your business and provide legally required documents.

Step 2: Print and sign documents. Based on your inputs, your tax agent completes all of the government forms for you – you simply need to print and sign.

Step 3: Post hard-copies. Send the physical copies of your signed documents back to your tax agent.

During the VAT registration process, you will receive weekly status emails so you can stay on top of your requirements and track your progress.

VAT Calculation Service is required for VAT Services on Amazon filings. You may begin VAT registration without VAT Calculation Service (VCS) activated but you will need to activate it once you have received your VAT numbers. You may activate VCS in Seller Central here. To learn more about VCS, visit the calculation methodology page here.

Additional questions

VAT Services on Amazon has two eligibility criteria:

(1) VAT Calculation Service: To conduct VAT filings with VAT Services on Amazon, you are required to activate VAT Calculation Service (VCS).

You may begin VAT registration without calculation activated but you will need to activate once you have received your VAT numbers. You may activate VCS in Seller Central here. To learn more about VCS, visit the calculation methodology page here.

(2) European Union-based: We currently only support Sellers who are established in the European Union.

For the purpose of this service, a tax agent is the third-party partner who will assist you with fulfilling your legally required VAT filing obligations. The tax agent’s duties may include these among others:

  • Assisting you with VAT registration 
  • Acting as the point-of-contact with the tax authorities for your VAT affairs
  • Preparing your draft VAT filings and submitting them on your behalf
  • Updating you on any major changes to VAT regulations and rules

Note: a tax agent is not an adviser and as a result, the tax agent will not provide tax advice

Amazon maintains and hosts VAT Services on Amazon. In addition, Amazon will assist you with the following:

  • Consolidate transactions details for your Amazon transactions
  • Check and notify you of certain errors in your uploaded data
  • Transfer consolidated data to your tax agent for preparation of your filings
  • Provide support for Seller Central usage

Amazon does not prepare your VAT filings nor does it submit your filings to tax authorities.