VAT KNOWLEDGE CENTRE
All you need to know about VAT in one place
Welcome to our dedicated VAT education page! This page aims to build your understanding of the European VAT landscape as an Amazon Selling partner. You should be able to find information related to existing regulations and how you might trigger VAT obligations. We will also highlight what steps you need to take to ensure VAT compliance and the solutions that are available for you to utilize.
Basic Concepts
What is Value Added Tax (VAT)?
VAT stands for Value Added Tax. It’s a tax that VAT-registered traders in Europe add to the price of the goods they sell, and pass on to the national tax authorities when they file their tax returns.
If you sell goods in any European country, it’s likely you may be required to register for Value Added Tax (VAT) in each country you sell in.
Remember, it is the responsibility of each Amazon selling partner to ensure they are VAT-compliant and you should seek professional advice if you are unsure of your obligations.
If you sell goods in any European country, it’s likely you may be required to register for Value Added Tax (VAT) in each country you sell in.
Remember, it is the responsibility of each Amazon selling partner to ensure they are VAT-compliant and you should seek professional advice if you are unsure of your obligations.
How does VAT work?
The basic principle is that businesses can recover the VAT they have paid on their purchases and then charge VAT on their sales. While you pay the VAT to the tax authorities, the end consumer pays the VAT as part of the purchase price. You will only be able to recover the VAT you have paid on your purchases and charge VAT on your sales if you are VAT registered.
Selling partners with a VAT number in the respective European country should show the VAT charged, including the VAT rate and number to customers on invoices, where a VAT invoice is required. In this way, the customer knows how much VAT is due on the purchased product.
Selling partners with a VAT number in the respective European country should show the VAT charged, including the VAT rate and number to customers on invoices, where a VAT invoice is required. In this way, the customer knows how much VAT is due on the purchased product.
What are the European VAT rates?
Actual VAT rates applied vary between European countries (the standard rate must be at least 15%) and between certain types of products. In addition, certain European countries have retained other rates for specific products.
The VAT guidelines offer national governments freedom to set the number and level of VAT rate they choose, subject only to two basic rules:
The VAT guidelines offer national governments freedom to set the number and level of VAT rate they choose, subject only to two basic rules:
- The standard rate for all goods and services.
- European country can opt to apply one or two reduced rates but only to goods or services listed in the VAT Directive.
Standard VAT rate is the rate that European countries apply to all non-exempt goods and services. It cannot be less than 15%, but there is no maximum.
VAT rates across EU member states
Member State
Code
Standard rate
Germany
DE
19 %
France
FR
20 %
Italy
IT
22 %
Spain
ES
21 %
Poland
PL
23 %
Czech Republic
CZ
21 %
Netherlands
NL
21 %
Belgium
BE
21 %
Sweden
SE
25 %
What is a VAT return?
Every VAT-registered person is obliged to file a VAT return for each relevant period. VAT filing is the process of preparing and submitting reports to tax authorities to provide them with information on your transactions in the relevant period and to provide them with the amount of VAT which you are due to pay (or receive in the case of an overpayment of VAT).
A VAT return includes information on the VAT collected from customers, VAT paid to suppliers, along with cross-border sales, cross-border acquisitions, imports and exports.
A VAT return includes information on the VAT collected from customers, VAT paid to suppliers, along with cross-border sales, cross-border acquisitions, imports and exports.
FAQ:
How often should I file returns?
This depends on which European country requirements and Selling partner's obligations in that country. Many European countries require returns to be submitted every month or three months. Please consult a tax advisor to guide you further.
What is Customs Duty?
Customs duty may be payable on the import of goods into a European country coming from outside of the Europe. The customs duty rate is determined based on the HS commodity code applicable to the product being imported, and may be influenced by the origin of the goods. The customs duties and import VAT is calculated as a percentage of the customs value of the goods. Please consult your tax advisor for further guidance.
FAQ:
What does Customs Duty mean for me as a Selling partner?
Goods imported from outside of the Europe, may have to go through customs checks. Customs paperwork/documentation (e.g. customs declaration) must be prepared and accompany imported goods. This documentation is the main source of information used by customs authorities to validate the custom duty/taxes payable. However, in some instances customs authorities may check the goods to determine how much customs duties and/or tax needs to be paid and may request further information, including to establish compliance of the goods with European regulations.
What is Import VAT?
Import VAT may also be payable on the same importation of goods from outside Europe into a European country, in addition to any customs duty which is due. This is calculated on the customs value of the goods plus any applicable duties. Import VAT is normally recoverable via your VAT return provided you are registered for VAT in the country where the goods are declared to the customs authorities and are the ‘owner’ of the goods.
What is invoicing?
In many European countries, customers expect a VAT invoice. VAT laws in the country where you ship your goods from and where the customer is located may require you to provide a VAT invoice. The process for the issuance of a VAT invoice varies based on the country. For further information, click here.
Tax representation
If you are a non-EU based Selling partner, you will be required to appoint a Tax Representation in some EU countries in order to register for VAT.
Tax representation is the process where an individual or business acts on behalf of a non-resident company for VAT purposes in the EU. Tax representatives in many EU countries are jointly and severally liable for the VAT debts of a non-EU based Selling partner.
As an online Selling partner, there may be a need for bank guarantees and extra fees to secure the use of a tax representative. These additional requirements are dependent on the country-specific requirements and the provider of tax representation services.
Tax representation is the process where an individual or business acts on behalf of a non-resident company for VAT purposes in the EU. Tax representatives in many EU countries are jointly and severally liable for the VAT debts of a non-EU based Selling partner.
As an online Selling partner, there may be a need for bank guarantees and extra fees to secure the use of a tax representative. These additional requirements are dependent on the country-specific requirements and the provider of tax representation services.
Visit our dedicated VAT Education pages on Seller Central to learn more.
VAT obligations
Do I need a VAT number?
Depending on the nature of your business, you will be required to register for VAT numbers in a European country as per the regulations. This depends on multiple factors, some of which are: place of business establishment, fulfilment model, and your annual sales.
Register for VAT with VAT Services on Amazon
VAT regulations across Europe
What are the various VAT regulations across Europe?
It is important for you to meet your VAT and tax obligations in all countries where your business operates. Please consult your tax adviser for guidance on how to meet your VAT obligations. While there are multiple factors involved in defining compliance requirements across the EU, we have summarized them for the Amazon marketplaces from a Selling partner’s perspective.
VAT Services on Amazon
Manage your European VAT registrations and filings
VAT Services on Amazon is a convenient and cost-effective VAT compliance solution to handle your VAT registration and filing requirements.
We offer VAT Services on Amazon in the UK, Germany, France, Italy, Spain, Poland and the Czech Republic.
We offer VAT Services on Amazon in the UK, Germany, France, Italy, Spain, Poland and the Czech Republic.
What is included
VAT Registration
Step 1: Sign up and customize your subscription
Select countries for VAT registration and have add all your existing VAT numbers to Seller Central.
Step 2: Collect and provide information
Complete the unified questionnaire, collect supporting documents following the detailed checklist and upload them for verification by the tax service provider.
Step 3: Submit documents
Download and sign the prefilled application forms and post them to the tax service provider who will submit your application to the tax authorities.
Step 4: Get your VAT Number(s)
As your VAT number(s) and DE Tax Certificate are received, they will be added to your Seller Central account. You will be able to download your VAT Registration Certificates directly from your Status Dashboard and start you VAT Filings by clicking on “Start VAT Filings”.
VAT Filings
Once you have your VAT Registration number(s), to complete your VAT Filings with VAT Services on Amazon, you need to complete a onetime set up and a 5 steps process.
One-time set up: Set up your account for VAT filings by providing some additional information on your product listings and start filing.
One-time set up: Set up your account for VAT filings by providing some additional information on your product listings and start filing.
5 steps process
) Review your Product Tax File
The Product Tax File contains the details of all of your products that have been sold, refunded or returned in any of your VAT Services on Amazon filing countries within the past 3 months.
2) Review Amazon VAT Transactions Report
The Amazon VAT Transactions Report contains relevant VAT information regarding transactions that occur in VAT Services on Amazon-subscribed countries.
3) Review Additional VAT Report and add any non-Amazon transactions
Additional VAT report contains information on your non-Amazon sales, refunds, returns, credits, EU cross-border stock movements, purchases or imports. It can also already contain your Amazon sale and refund transactions in case if you have not activated VAT Calculation Services. You need to add your off Amazon transactions so they can be included in your monthly filings!
4) Review the draft filings
You will need then to review your draft filings, where you can see a summary of VAT liability for each country as well as the status and deadline for each filing.
5) Make VAT payment
After your VAT filings have been generated by your tax agent, you will be able to see your VAT payment due and the payment deadline for each respective country on the VAT Services on Amazon portal. This payment is not automated, you will have to make this payment yourself.
Fiscal Representation
As described in the “Tax Representation” section above, if you are a non-EU based Selling partner, you will be required to provide a Tax Representation (also called Fiscal Representation) in some EU countries in order to register for VAT.
The countries that require Fiscal Representation are France, Italy, Spain and Poland.
If you need to register in any of these countries your tax service provider will support you with the fiscal representation as part of VAT Services on Amazon.
The countries that require Fiscal Representation are France, Italy, Spain and Poland.
If you need to register in any of these countries your tax service provider will support you with the fiscal representation as part of VAT Services on Amazon.
Free EORI in UK and / or EU
Free EORI service is provided by your tax service provider. Your tax service provider will also determine the appropriate country in the EU to apply for a EU EORI number.
Real time updates via Seller Central
Real time updates about your VAT reporting obligations and payment deadlines via Seller Central
Sworn Translation
Automated reporting – Intrastat, EC Sales List, any locally required reporting
Disclaimer:
a) VAT Services on Amazon does not provide support on reporting of VAT related to supply of telecommunication services, television and radio broadcasting services and electronically supplied services. These are supported in the Mini One Stop Shop (MOSS) scheme. To learn more about the MOSS scheme and about the process to register to MOSS, visit the dedicated page on the European Commission official website. Please contact your local tax service provider for further assistance on these items.
b) Does not offer VAT Registration and Filing Services in the country of establishment of your business. And would therefore not support the generation or filing of One-Stop Shop (OSS) reports at the time of launch of this legislation. We will however help you identify the transactions that should be filed in your OSS declarations. These transactions will be excluded from VAT reports prepared by VAT Services on Amazon, and you will need to work with your domestic / home country tax agents for OSS returns filing. Please reach out to your domestic / home country tax agent regarding obtaining a OSS number and filing your OSS returns.
a) VAT Services on Amazon does not provide support on reporting of VAT related to supply of telecommunication services, television and radio broadcasting services and electronically supplied services. These are supported in the Mini One Stop Shop (MOSS) scheme. To learn more about the MOSS scheme and about the process to register to MOSS, visit the dedicated page on the European Commission official website. Please contact your local tax service provider for further assistance on these items.
b) Does not offer VAT Registration and Filing Services in the country of establishment of your business. And would therefore not support the generation or filing of One-Stop Shop (OSS) reports at the time of launch of this legislation. We will however help you identify the transactions that should be filed in your OSS declarations. These transactions will be excluded from VAT reports prepared by VAT Services on Amazon, and you will need to work with your domestic / home country tax agents for OSS returns filing. Please reach out to your domestic / home country tax agent regarding obtaining a OSS number and filing your OSS returns.
Why sign up?
Cost effective
When you join VAT Services on Amazon, Amazon will cover the cost of the first 6 months of filing and fiscal representation in all countries you subscribed in! After your first 6 months, you will be charged a monthly fee for VAT services on Amazon - as low as €33.30/month (1 country, without fiscal representation).
Simple
Get guidance on VAT registration and automated VAT filings.
You will only need to provide us with the data and documentation we will request based on the countries you choose, and VAT Services on Amazon will take care of the complex, costly and time consuming processes for you.
- Valid for all of your Amazon and non-Amazon transactions
- Experienced and trusted third-party tax service provider submitting your VAT filings
- Free EORI in UK and/or EU using VAT Services on Amazon
- Service and support localized to your needs
*Free EORI service is provided by your tax service provider, who will also determine the appropriate country in the EU to apply for an EU EORI number.
You will only need to provide us with the data and documentation we will request based on the countries you choose, and VAT Services on Amazon will take care of the complex, costly and time consuming processes for you.
- Valid for all of your Amazon and non-Amazon transactions
- Experienced and trusted third-party tax service provider submitting your VAT filings
- Free EORI in UK and/or EU using VAT Services on Amazon
- Service and support localized to your needs
*Free EORI service is provided by your tax service provider, who will also determine the appropriate country in the EU to apply for an EU EORI number.
Dedicated customer support
VAT Services on Amazon offers self-service help content as well as dedicated customer support directly provided from our Seller Support team in Chinese, English, French, German, Italian, Spanish, Korean and Japanese.
Our Partners
VAT Services on Amazon has selected experienced and trusted tax service providers in Europe to bring you support at a cost-effective fee in multiple geographical locations.
At sign up, you will be able to choose your preferred partner amongst the selection of tax service providers available for your country of establishment.
At sign up, you will be able to choose your preferred partner amongst the selection of tax service providers available for your country of establishment.
Fees and Promotions
VAT Services on Amazon Fee
VAT Registration Fee- One time
€50/one-time fee to VAT register 1 country with our tax service providers.
VAT Filings Fee- Monthly
From €33/month. Total monthly fee by number of filing countries.
Number of countries
1
2
3
4
5
6
7
Total monthly fee
€33
€62
€92
€117
€142
€142*
€142*
*Adding the 6th and 7th country is free.
Fiscal Representation - Monthly (only if needed)
€21/month for each country where you need Fiscal representation.
Visit our dedicated VAT Services on Amazon Fees page on Seller Central to learn more.
FAQs
Who is eligible to join VAT Services on Amazon?
All Amazon Selling Partners registered to sell in a European marketplace are eligible to sign up for VAT Services on Amazon without any restrictions.
What is the payment process? Should I pay to tax service providers first then get reimbursement?
For VAT registration, VAT filings services and fiscal representation, the fee will be debited directly from your main Amazon Seller Central Account. We will send a communication prior to debiting your account with the amount to be debited and exact date of debit. You do not need to pay the tax service providers, you will be charged by Amazon directly after your promotion period, if applicable.
If you are interested in additional services, such as tax advisory services, you can engage separately with the tax service provider, outside of VAT Services on Amazon. Please click here to review the additional services offered by our tax service providers and their fees.
If you are interested in additional services, such as tax advisory services, you can engage separately with the tax service provider, outside of VAT Services on Amazon. Please click here to review the additional services offered by our tax service providers and their fees.
Does the VAT Services on Amazon monthly fee include the VAT related to the subscription fee?
Price does not include the VAT related to the VAT Services on Amazon subscription fee. If applicable, this value will be included on your invoice and deducted from the balance of your Amazon Seller Central Account and you will be able to see it as a “Miscellaneous Adjustment” on your Transactions page. You can reclaim the VAT amount through your periodic VAT return as a normal input VAT charge.
What is included in my VAT registration fee?
Included in your VAT registration fee
• VAT Registration
• EORI (Economic Operators Registration and Identification) in SE
• EORI in one EU4 country
• Sworn Translation service
• VAT Registration
• EORI (Economic Operators Registration and Identification) in SE
• EORI in one EU4 country
• Sworn Translation service
What is included in my VAT filing services fee?
Included in your VAT filing services fee are:
• VAT returns as required by subscribed country
• Intrastat reporting
• EC Sales List reporting
• Locally required reporting, such as Spesometro in Italy
• UK and European EORI number request
• Manage your VAT from Seller Central through Amazon technology
• Dedicated customer support
• VAT returns as required by subscribed country
• Intrastat reporting
• EC Sales List reporting
• Locally required reporting, such as Spesometro in Italy
• UK and European EORI number request
• Manage your VAT from Seller Central through Amazon technology
• Dedicated customer support
When will I be charged?
You will be charged the one-time VAT registration fee, per country, after you have signed up with VAT Services on Amazon. For VAT filing services and fiscal representation, if applicable, we will start charging a monthly fee after your first filing is generated or after your promotion period ends, if applicable.
How will I be charged?
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.
You will be invoiced separately for Amazon technology fee and Tax service provider as displayed on the following table:
You will be invoiced separately for Amazon technology fee and Tax service provider as displayed on the following table:
# Countries
VAT Filing Services
Invoice by Tax Service Provider
Invoice by Amazon
1
€ 399
€ 200
€ 199
2
€ 749
€ 400
€ 349
3
€ 1,099
€ 600
€ 499
4
€ 1,399
€ 800
€ 599
5
€ 1,699
€ 1,000
€ 699
6
€ 1,699
€ 1,000
€ 699
7
€ 1,699
€ 1,000
€ 699
More resources on VAT
EU tax authorities
Other resources
FAQs
Get answers to the frequently asked questions about Value Added Tax (VAT).
What are the consequences of non-compliance with Value Added Tax (VAT) obligations in the EU?
EU countries operate a harmonised VAT regime. Failure to comply with VAT registration and ongoing compliance requirements within the EU has serious consequences:
- Typically you have to pay the VAT which you should have paid to the appropriate (EU) tax authorities, plus interest on the VAT from the date it should have been paid. This is usually from the date you should have obtained a VAT registration number, accounted for VAT on your sales and remitted VAT to the tax authorities (despite not charging VAT on your sales during this time).
- If the tax authorities become aware that you have failed to comply with your VAT obligations you may have to pay a financial penalty. The amount of the penalty will typically depend on the amount of VAT due and the length of time you failed to meet your registration obligations. Late registration penalties are generally a percentage based on the VAT amount that should have been remitted to the tax authorities. The ways in which penalties are calculated differ from country to country. If you intentionally or wilfully fail to comply with your VAT obligations, you could also be subject to criminal prosecution by governmental authorities.
In the event that Amazon is notified that you have failed to comply with your VAT compliance obligations, you may lose your selling privileges on Amazon websites. You will be prevented from re-listing until such time you have demonstrated VAT compliance.
On the VAT Resources website we have provided you with some useful information which may assist you in considering your obligations with regards VAT compliance. However, this information is not intended to be a comprehensive guide nor tax advice and if you are unsure of your obligations we recommend that you seek advice from either the applicable tax authority or an independent tax advisor.
- Typically you have to pay the VAT which you should have paid to the appropriate (EU) tax authorities, plus interest on the VAT from the date it should have been paid. This is usually from the date you should have obtained a VAT registration number, accounted for VAT on your sales and remitted VAT to the tax authorities (despite not charging VAT on your sales during this time).
- If the tax authorities become aware that you have failed to comply with your VAT obligations you may have to pay a financial penalty. The amount of the penalty will typically depend on the amount of VAT due and the length of time you failed to meet your registration obligations. Late registration penalties are generally a percentage based on the VAT amount that should have been remitted to the tax authorities. The ways in which penalties are calculated differ from country to country. If you intentionally or wilfully fail to comply with your VAT obligations, you could also be subject to criminal prosecution by governmental authorities.
In the event that Amazon is notified that you have failed to comply with your VAT compliance obligations, you may lose your selling privileges on Amazon websites. You will be prevented from re-listing until such time you have demonstrated VAT compliance.
On the VAT Resources website we have provided you with some useful information which may assist you in considering your obligations with regards VAT compliance. However, this information is not intended to be a comprehensive guide nor tax advice and if you are unsure of your obligations we recommend that you seek advice from either the applicable tax authority or an independent tax advisor.
How is VAT charged and reimbursed?
In order to charge VAT you must first be registered for VAT and obtain a VAT number. Once you are VAT registered you are bound by the VAT rules applicable to the EU country in which you are registered but it normally means that you must charge VAT (where applicable) on your sales and mention this VAT on a VAT compliant invoice (please consult your tax advisor for specific advice regarding invoicing requirements).
The amount of VAT due to a local tax authority, i.e. charged to your customers, can be offset by the VAT which is incurred on your business purchases/costs (please consult a tax advisor regarding on which costs VAT can be recovered).
Please note that you should check VAT reporting and invoicing requirements in each country in which you register. Although these requirements are similar, there can be notable differences.
The amount of VAT due to a local tax authority, i.e. charged to your customers, can be offset by the VAT which is incurred on your business purchases/costs (please consult a tax advisor regarding on which costs VAT can be recovered).
Please note that you should check VAT reporting and invoicing requirements in each country in which you register. Although these requirements are similar, there can be notable differences.
How to register for VAT in multiple countries?
If you store, move or sell goods in multiple EU countries you may be required to register for VAT in multiple countries. If this is the case, you could be required to submit VAT returns in more than one country.
The requirements to register for VAT in multiple countries vary and we recommend that you consult a tax advisor, particularly if you store goods in more than one EU country or make distance sales within the EU.
The requirements to register for VAT in multiple countries vary and we recommend that you consult a tax advisor, particularly if you store goods in more than one EU country or make distance sales within the EU.
I sell products from another country into an EU country. Where do I need to register for VAT?
When selling goods from one EU country into another EU country, you should be aware that the VAT requirements and rates could be different from country to country. If you store your goods in an EU country, you may be required to VAT register in that EU Country. Additionally, if you transfer your own goods from one EU Country to another, or if Amazon (FBA) transfers your goods from a fulfilment centre into another country where you have designated your goods can be stored, the transfer may also be treated as a transaction, which needs to be reported on a VAT return. You are responsible for meeting any VAT obligations that apply, including VAT obligations in the Amazon marketplace website locations, the countries from which you are delivering your goods, the countries to which you are delivering or shipping your goods, or any other countries (e.g. country of importation in case you import goods from non EU).
How soon after crossing the VAT threshold do I need to upload a VAT number in Seller Central?
You should monitor your account and apply for a VAT number with the relevant tax authority or with VAT Services on Amazon as soon as you expect to exceed the threshold or breach another VAT registration requirement. Given that time is needed to complete the process, we recommend you apply for your VAT number sufficiently in advance of exceeding the threshold.
What is the difference between an EU VAT registration number and a local VAT number?
EU VAT registration number: VAT registration number that is validated and listed in VIES. The EU VAT registration number is preceded by a country prefix (for example, IT for Italy, ES for Spain) from the country that granted the number.
Local VAT registration number: A local VAT registration number does not have a country prefix and is in principle only meant to be used for domestic transactions within the country that granted the number (for example, purchases from a domestic supplier).
Local VAT registration number: A local VAT registration number does not have a country prefix and is in principle only meant to be used for domestic transactions within the country that granted the number (for example, purchases from a domestic supplier).
What is a tax identification number?
A tax identification number is the officially issued tax identification number issued by the country where the Selling Partner’s business is legally established. For example, if their business is legally established in France, then their local tax identification number is their SIRET number. Similarly, if their business is legally established in China then their local tax identification number is the Uniform Social Credit Code or, if operating as an individual, the ID number from their Chinese ID card.
The business name registered for my VAT number does not match my Seller Central legal name because of a clerical mistake. What should I do?
We cannot accept VAT numbers that don’t match your legal name. You must contact the relevant tax authority to either update your business name for the VAT number registered, or request that they provide a new VAT number belonging to the legal name in your selling partner account.
You may also choose to change your business name in Seller Central, but this may (re)trigger the account verification process, and you will have to provide relevant proof to clear this verification.
You may also choose to change your business name in Seller Central, but this may (re)trigger the account verification process, and you will have to provide relevant proof to clear this verification.
Note: Information on this page does not constitute tax, legal, or other professional advice and must not be used as such. For specific advice on your VAT obligations, we recommend that you consult a tax adviser. Moreover, some legislative changes will occur in January 2021, which might affect the information provided on this page.
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