VAT KNOWLEDGE CENTRE
Everything you need to know about VAT in one place
Welcome to our dedicated VAT information page! This page is designed to give you, as an Amazon Selling Partner, insight into the European VAT landscape. You’ll find information on existing regulations and how you might incur additional VAT obligations. We also explain clearly the steps you need to take to comply with VAT requirements and the solutions you can use.
Fundamentals
What is value added tax (VAT)?
VAT stands for value added tax. It is 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 a European country, you may need to register for VAT in each country in which you sell.
Remember that it is the responsibility of every Amazon Selling Partner to comply with VAT laws and that you should seek professional advice if you are unsure of your obligations.
If you sell goods in a European country, you may need to register for VAT in each country in which you sell.
Remember that it is the responsibility of every Amazon Selling Partner to comply with VAT laws and that you should seek professional advice if you are unsure of your obligations.
How does VAT work?
The basic principle is that businesses can reclaim the VAT paid on their purchases and then charge VAT on their sales. You pay VAT to the tax authorities, and the end consumer pays VAT as part of the purchase price. You can reclaim the VAT paid on your purchases and charge VAT on your sales only if you are subject to VAT.
Selling Partners with a VAT number in the relevant European country must state the VAT charged, VAT rate and VAT number on their invoices to customers, where a VAT invoice is required. This way, the customer knows how much VAT they owe on the purchased product.
Selling Partners with a VAT number in the relevant European country must state the VAT charged, VAT rate and VAT number on their invoices to customers, where a VAT invoice is required. This way, the customer knows how much VAT they owe on the purchased product.
What are the European VAT rates?
The actual VAT rates applied vary by country (the standard rate must be at least 15%) and by type of product. Moreover, certain European countries have maintained different rates for specific products.
The VAT guidelines give national governments the freedom to set the number and amount of VAT rates, subject to only two basic rules:
The VAT guidelines give national governments the freedom to set the number and amount of VAT rates, subject to only two basic rules:
- The standard rate for all goods and services.
- A European country can choose to apply one or two reduced rates, but only for goods or services listed in the VAT Directive.
The standard VAT rate is the rate that European countries apply to all non-exempt goods and services. This cannot be less than 15%, but there is no maximum.
VAT rates in 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%
Sweden
SE
25%
What is a VAT declaration?
Every person liable to VAT is required to file a VAT return for each relevant period. VAT declaration is the process of preparing and filing statements to the tax authorities to inform them of your transactions during the relevant period and the amount of VAT you owe (or receive, in case of overpayment of VAT).
A VAT declaration includes information on VAT collected from customers, VAT paid to suppliers, cross-border sales, cross-border purchases, imports and exports.
A VAT declaration includes information on VAT collected from customers, VAT paid to suppliers, cross-border sales, cross-border purchases, imports and exports.
FAQ:
How often do I have to file a VAT declaration?
This depends on the requirements of the relevant European country and the obligations of the Selling Partner in that country. In many European countries, VAT declaration must be filed every month or every three months. Consult a tax advisor for further assistance.
What are customs duties?
Customs duties may be payable when importing goods into a European country from outside of Europe. Customs duties are determined based on the HS code applicable to the imported product and can be affected by the origin of the goods. The rate of customs duties and import VAT is calculated as a percentage of the customs value of the goods. Consult your tax advisor for further assistance.
FAQ:
What do customs duties mean for me as a Selling Partner?
Goods imported from outside Europe may have to undergo customs checks. Customs documents must be prepared to accompany the imported goods (for example, customs declaration). This documentation is the main source of information used by customs authorities to validate customs duties/taxes due. In some cases, however, customs authorities may inspect the goods to determine the amount of customs duties and/or tax to be paid and may request further information, including to verify the goods’ compliance with European regulations.
What is import VAT?
In addition to the customs duties due, paying VAT on imports may also be mandatory for goods imported into a European country from outside Europe. This is calculated on the basis of the customs value of the goods plus any applicable duties. Import VAT is normally recoverable via your VAT declaration, provided that you are liable for VAT in the country where the goods are declared to the customs authorities and you are the “owner” of the goods.
What is invoicing?
In many European countries, customers expect a VAT invoice. The VAT regulations in the country where you ship your goods and where the customer is located may require you to issue a VAT invoice. The process for issuing a VAT invoice differs from country to country. For more information, click here.
Tax representation
If you're a Selling Partner outside the EU, you'll need to designate a tax representative for VAT registration in some EU countries.
Tax representation is the process by which an individual or company acts on behalf of a non-EU 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 additional fees to secure the use of a tax representative. These additional requirements depend on the country-specific requirements and the provider of tax representation services.
Tax representation is the process by which an individual or company acts on behalf of a non-EU 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 additional fees to secure the use of a tax representative. These additional requirements depend on the country-specific requirements and the provider of tax representation services.
Visit our dedicated VAT information pages on Seller Central for more information.
VAT obligations
Do I need a VAT number?
Depending on the nature of your business, you need to apply for a VAT number in European countries according to the regulations in force. This depends on several factors, including the location of your business, how you ship and where your inventory is, and your annual turnover. This also applies to FBA because your inventory is stored abroad. Read more about this in our VAT handbook.
Register for VAT with VAT Services on Amazon.
VAT regulations in Europe
What are the different VAT regulations in Europe?
It is important to comply with your VAT and tax obligations in all countries where your business operates. Consult your tax advisor, who can help you meet your VAT obligations. While there are several factors involved in establishing compliance requirements in the EU, we have summarised them for Amazon marketplaces from a Selling Partner’s perspective.
VAT Services on Amazon
Arrange your European VAT registrations and declarations
VAT Services on Amazon is a convenient and cost-effective VAT compliance solution that allows you to easily meet your VAT registration and declaration obligations.
We offer VAT Services on Amazon for the United Kingdom, Germany, France, Italy, Spain, Poland and the Czech Republic.
We offer VAT Services on Amazon for the United Kingdom, Germany, France, Italy, Spain, Poland and the Czech Republic.
What's included
VAT registration
Step 1: Register and set up your subscription
Select countries for VAT registration and add your existing VAT numbers to Seller Central.
Step 2: Collect and provide the necessary information
Complete the uniform questionnaire, collect supporting documents according to the detailed checklist and upload them for verification by the tax service provider.
Step 3: Submit your documents
Download and sign the pre-filled application forms and send them to the tax service provider, who will submit your application to the tax authorities.
Step 4: Get your VAT number(s)
Once your VAT number(s) and DE tax certificate have been processed, they will be added to your Seller Central account. You can download your VAT registration certificates directly from your Status Dashboard and start your VAT declaration by clicking “Start VAT Filings”.
VAT declaration
Once you have your VAT number(s), you'll need to complete a one-time account setup for VAT declaration with VAT Services on Amazon and complete a five-step process.
One-time setup: Set up your account for VAT declaration by providing some additional information about your product listings, and start the declaration process.
One-time setup: Set up your account for VAT declaration by providing some additional information about your product listings, and start the declaration process.
Five-step process
1) Check the VAT file for your products
The VAT file contains details of all your products sold, refunded or returned in the past three months in the countries for which you have set up VAT Services on Amazon.
2) Review the Amazon VAT Transactions Report
The Amazon VAT Transactions Report contains relevant VAT information on transactions that have taken place in the countries for which you have signed up for VAT Services on Amazon.
3) Check the Additional VAT Report and add any non-Amazon transactions
The Additional VAT Report contains information on your non-Amazon sales, refunds, returns, credits, EU cross-border stock movements, purchases and imports. It can also include your Amazon sales and refund transactions in case you have not activated VAT Calculation Services. You must add your non-Amazon transactions so that they can be included in your monthly returns!
4) Check your draft declaration
You’ll then need to review your draft declaration, where you will see an overview of VAT liability for each country as well as the status and deadline of each filing.
5) Make your VAT payment
After your VAT declaration has been completed by your tax service provider, you can see your VAT payment due and the payment deadline for each respective country on the VAT Services on Amazon portal. This payment is not automatic, you will have to make this payment yourself.
Tax representation
As described in the “Tax representation” section above, if you are a non-EU based Selling Partner, you must appoint a tax representative (also known as fiscal representation) in certain EU countries in order to register for VAT.
The countries where tax representation is required are France, Italy, Spain and Poland.
If you need to register in any of these countries, your tax service provider will support you with tax representation as part of VAT Services on Amazon.
The countries where tax representation is required are France, Italy, Spain and Poland.
If you need to register in any of these countries, your tax service provider will support you with tax representation as part of VAT Services on Amazon.
Free EORI number in the United Kingdom and/or EU
The free EORI service is provided by your tax service provider. Your tax service provider will also determine the EU country in which you’ll need to apply for a European EORI number.
Real-time updates via Seller Central
Real-time updates about your VAT reporting obligations and payment deadlines via Seller Central
Sworn translation
Automatic reporting — Intrastat, Intra-Community transactions declaration (ICP), all locally required reports
Automatic reporting — Intrastat, Intra-Community transactions declaration (ICP), all locally required reports
Disclaimer:
a) VAT Services on Amazon does not support VAT reporting in connection with the provision of telecommunications , television and radio broadcasting, and electronic services. These are supported in the MOSS (Mini One-Stop Shop) scheme. More information about the MOSS scheme and the MOSS registration process can be found on the dedicated page on the official website of the European Commission. Consult your local tax service provider for further assistance with these issues.
b) VAT Services on Amazon does not offer VAT registration and filing services in your company's country of residence. We do not therefore support the preparation or submission of OSS (One-Stop Shop) returns at the time this legislation came into force. However, we will help you identify the transactions that need to be included in your OSS declarations. These transactions are excluded from the VAT reports generated by VAT Services on Amazon. In this case, you will need to work with a tax service provider in your country of residence to file OSS returns. Consult a tax service provider in your home country to obtain an OSS number and file your OSS returns.
a) VAT Services on Amazon does not support VAT reporting in connection with the provision of telecommunications , television and radio broadcasting, and electronic services. These are supported in the MOSS (Mini One-Stop Shop) scheme. More information about the MOSS scheme and the MOSS registration process can be found on the dedicated page on the official website of the European Commission. Consult your local tax service provider for further assistance with these issues.
b) VAT Services on Amazon does not offer VAT registration and filing services in your company's country of residence. We do not therefore support the preparation or submission of OSS (One-Stop Shop) returns at the time this legislation came into force. However, we will help you identify the transactions that need to be included in your OSS declarations. These transactions are excluded from the VAT reports generated by VAT Services on Amazon. In this case, you will need to work with a tax service provider in your country of residence to file OSS returns. Consult a tax service provider in your home country to obtain an OSS number and file your OSS returns.
Why sign up?
Cost-effective
VAT Services on Amazon are billed monthly — starting at just €29.20 per month (one country, without tax representation).
Simple
Get guidance on VAT registration and automatic VAT declarations.
All you need to do is provide us with the information and documentation we 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 for submitting your VAT returns
- Free UK and/or EU EORI number when using VAT Services on Amazon
- Service and support localised to your needs
*The free EORI service is provided by your tax service provider. Your tax service provider will also determine the EU country in which you’ll need to apply for a European EORI number.
All you need to do is provide us with the information and documentation we 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 for submitting your VAT returns
- Free UK and/or EU EORI number when using VAT Services on Amazon
- Service and support localised to your needs
*The free EORI service is provided by your tax service provider. Your tax service provider will also determine the EU country in which you’ll need to apply for a European EORI number.
Dedicated customer support
VAT Services on Amazon offers self-service help content as well as dedicated customer service provided directly by 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 provide you with low-cost assistance in multiple locations.
When you sign up, you can choose your preferred partner from a selection of tax service providers available for your country of residence.
When you sign up, you can choose your preferred partner from a selection of tax service providers available for your country of residence.
Fees and promotions
Cost of VAT Services on Amazon
VAT registration fees — one off
Country
Price
UK
€50
DE
€50
FR
€150
IT
€150
ES
€150
PL
€150
CZ
€150
VAT declaration fee — monthly
From €29.17 per month. Total monthly fee according to number of countries in which a declaration is filed.
We aim to provide you with the best services and, in line with this goal, we offer a quantity discount for our Selling Partners who file in five or more countries, as listed below:
No. countries
Filing fees before discount
Quantity discount
Filing fees after discount
Monthly filing fees
1
€350
-
€350
€29.17
2
€700
-
€700
€58.33
3
€1050
-
€1050
€87.50
4
€1400
-
€1400
€116.67
5
€1750
5%
€1663
€138.54
6
€2100
20%
€1680
€140.00
7
€2450
30%
€1715
€142.92
Tax representation — monthly (where required)
€21 per month for each country where you need tax representation.
For more information, please visit our dedicated VAT Services on Amazon Fees page to learn more.
FAQ
Who is eligible to join VAT Services on Amazon?
All Amazon Selling Partners registered to sell in a European marketplace are eligible for VAT Services on Amazon without any restrictions.
What is the payment process? Should I first pay a tax service provider and then claim my money back?
For VAT registration, VAT reporting services and tax representation, fees are deducted directly from your main Amazon Seller Central account. You will be notified of the exact amount and date of debit before we charge your account. You don't need to pay the tax service provider yourself. Amazon will charge you the required amount immediately after the promotion period ends (if applicable).
If you are interested in additional services, such as tax advice services, you can contact the tax service provider yourself outside of VAT Services on Amazon. Click here to see the additional services offered by our tax service providers and the associated costs.
If you are interested in additional services, such as tax advice services, you can contact the tax service provider yourself outside of VAT Services on Amazon. Click here to see the additional services offered by our tax service providers and the associated costs.
Is VAT included the monthly subscription fee for VAT Services on Amazon?
The subscription fee for VAT Services on Amazon does not include VAT. If applicable, this amount will be included in your invoice and deducted from your Amazon Seller Central account balance. You will see this amount as “Adjustment — Miscellaneous” on the Transactions page. You can reclaim the VAT amount via your periodic VAT declaration in accordance with the applicable rules.
What is included in my VAT registration fee?
Included in your VAT registration fee
• VAT registration
• Economic Operators Registration and Identification (EORI) number in the United Kingdom
• EORI number in one EU4 country
• Sworn translation services
• VAT registration
• Economic Operators Registration and Identification (EORI) number in the United Kingdom
• EORI number in one EU4 country
• Sworn translation services
What is included in my VAT declaration fee?
Included in your VAT declaration fee:
• VAT declarations as required by the country for which you have registered
• Intrastat reporting
• Intra-Community transactions declaration (ICP)
• Locally required declarations, such as the Spesometro in Italy
• Application for a UK and EU EORI number
• Manage your VAT from Seller Central using Amazon technology
• Dedicated customer support
• VAT declarations as required by the country for which you have registered
• Intrastat reporting
• Intra-Community transactions declaration (ICP)
• Locally required declarations, such as the Spesometro in Italy
• Application for a UK and EU EORI number
• Manage your VAT from Seller Central using Amazon technology
• Dedicated customer support
Kiedy zostanie naliczona opłata?
You pay the one-off VAT registration fee, per country, after you sign up for VAT Services on Amazon. For VAT declaration services and fiscal representation we will, where applicable, charge a monthly fee after your first return has been prepared or after your promotional period ends.
How will I be charged?
You will receive an invoice and the fees for VAT Services on Amazon will be charged to your main EU marketplace account. The fees will be deducted from your existing balance under “Adjustment — Miscellaneous”.
You will be billed separately for Amazon technology and tax service provider fees as shown in the following table:
You will be billed separately for Amazon technology and tax service provider fees as shown in the following table:
Number of countries
VAT declaration services
Invoice from tax service provider
Invoice from Amazon
1
€399
€200
€199
1
€399
€200
€199
2
€749
€400
€349
3
€1099
€600
€499
4
€1399
€800
€599
5
€1699
€1000
€699
6
€1699
€1000
€699
7
€1699
€1000
€699
Learn more about VAT
EU tax authorities
FAQ
Get answers to frequently asked questions about value added tax (VAT).
What are the consequences of non-compliance with VAT obligations in the EU?
EU countries have a harmonised VAT system. Failure to comply with VAT registration and ongoing compliance requirements in the EU has serious consequences:
- Typically, you have to pay the VAT you should have paid to the relevant (EU) tax authority, plus interest on the VAT from the date it should have been paid. This usually applies from the date on which you should have obtained a VAT registration number, paid VAT on your sales and paid VAT to the tax authorities (even if you had not charged VAT on your sales during that period).
- If the tax authorities find out that you have not fulfilled your VAT obligations, you may be fined. The amount of the penalty will usually depend on the amount of VAT due and the length of the period during which you failed to comply with your registration obligations. Fines for late registration are usually a percentage of the amount of VAT that should have been paid to the tax authorities. Fines are calculated differently from country to country. If you deliberately or wilfully fail to comply with your VAT obligations, you can also face criminal prosecution by government agencies.
In the event that Amazon is notified that you have failed to comply with your VAT obligations, you may lose your selling privileges on Amazon websites. You will then not be able to list any offers until you can prove you have met your VAT obligations.
On the VAT information website, we have provided you with useful information on VAT obligations. However, this information is not intended to be a comprehensive guide or to serve as tax advice. If you are unsure about your obligations, we recommend you seek advice from the relevant tax authorities or from an independent tax advisor.
- Typically, you have to pay the VAT you should have paid to the relevant (EU) tax authority, plus interest on the VAT from the date it should have been paid. This usually applies from the date on which you should have obtained a VAT registration number, paid VAT on your sales and paid VAT to the tax authorities (even if you had not charged VAT on your sales during that period).
- If the tax authorities find out that you have not fulfilled your VAT obligations, you may be fined. The amount of the penalty will usually depend on the amount of VAT due and the length of the period during which you failed to comply with your registration obligations. Fines for late registration are usually a percentage of the amount of VAT that should have been paid to the tax authorities. Fines are calculated differently from country to country. If you deliberately or wilfully fail to comply with your VAT obligations, you can also face criminal prosecution by government agencies.
In the event that Amazon is notified that you have failed to comply with your VAT obligations, you may lose your selling privileges on Amazon websites. You will then not be able to list any offers until you can prove you have met your VAT obligations.
On the VAT information website, we have provided you with useful information on VAT obligations. However, this information is not intended to be a comprehensive guide or to serve as tax advice. If you are unsure about your obligations, we recommend you seek advice from the relevant tax authorities or from an independent tax advisor.
How is VAT charged and refunded?
To be able to charge VAT, you must first be registered for VAT and have a VAT number. Once you are VAT registered, you are bound by the VAT rules applicable to the EU country where you are registered. Typically, this means that you have to charge VAT (if applicable) on your sales and declare the VAT on a VAT-compliant invoice (consult your tax advisor for specific advice on invoicing requirements).
The amount of VAT you owe to a local tax authority (that is, the VAT you have charged your customers), can be offset against the VAT you have to pay on your business purchases/expenses (consult your tax advisor to find out the costs on which VAT can be recovered).
Remember to check the VAT declaration and invoicing requirements in each country where you register. While these requirements are similar, there can be notable differences.
The amount of VAT you owe to a local tax authority (that is, the VAT you have charged your customers), can be offset against the VAT you have to pay on your business purchases/expenses (consult your tax advisor to find out the costs on which VAT can be recovered).
Remember to check the VAT declaration and invoicing requirements in each country where you register. While 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 several EU countries, you may need to register for VAT in several countries. If this is the case, you may have to submit a VAT declaration in more than one country.
VAT registration requirements vary in different countries and we recommend that you consult a tax advisor, especially if you store goods in more than one EU country or sell remotely within the EU.
VAT registration requirements vary in different countries and we recommend that you consult a tax advisor, especially if you store goods in more than one EU country or sell remotely 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 to another EU country, you should be aware that VAT requirements and rates differ from one country to another. If you store your goods in an EU country, you may be subject to VAT in that EU country. If you transfer your own goods from one EU country to another, or if Amazon (FBA) transfers your goods from a fulfilment centre to another country where you have indicated that your goods can be stored, the transfer can also be treated as a transaction that must be included in the VAT declaration. You are responsible for complying with all applicable VAT obligations, including VAT obligations for Amazon Marketplace website locations, in the countries from which you send your goods, the countries to which you deliver or ship your goods, or other countries (for example, country of import when importing non-EU goods).
How soon after exceeding the VAT threshold should I upload a VAT number to Seller Central?
You should review your account and request a VAT number from the relevant tax authority or from VAT Services on Amazon as soon as you expect to exceed the threshold or breach any other VAT registration requirement. Since it takes time to complete the process, we recommend that you apply for your VAT number well before you cross the threshold.
What is the difference between an EU VAT number and a local VAT number?
EU VAT number: VAT registration number that has been validated and listed in VIES. An EU VAT number has a country code prefix (for example, IT for Italy, ES for Spain) of the country that issued the number.
Local VAT number: A local VAT number does not have a country code prefix and is in principle only intended to be used for domestic transactions in the country that issued the number (for example, for purchases from a domestic supplier).
Local VAT number: A local VAT number does not have a country code prefix and is in principle only intended to be used for domestic transactions in the country that issued the number (for example, for purchases from a domestic supplier).
What is a tax identification number?
A tax identification number is the tax identification number officially issued by the country where the Selling Partner’s business is legally established. For example, if their business is legally established in France, the local tax identification number is their SIRET number. Similarly, if their business is legally based in China, their local tax identification number is the “Uniform Social Credit Code” or, if they operate as an individual, the ID number from their Chinese ID card.
The company name registered with my VAT number does not match my legal name with Seller Central due to an administrative error. What should I do?
We cannot accept VAT numbers that don't match your company's legal name. You should consult the relevant tax authority to change your company name associated with the registered VAT number, or request that they provide a new VAT number for the legal name in your Selling Partner account.
You can also choose to change your company name in Seller Central, but this may (re)initiate the account verification process and you will have to provide relevant proof to undo this process.
You can also choose to change your company name in Seller Central, but this may (re)initiate the account verification process and you will have to provide relevant proof to undo this process.
Note: The information on this page does not constitute tax, legal or other professional advice and should not be used as such. For specific advice about your VAT obligations, we recommend that you consult a tax advisor. Moreover, certain legislative changes will occur in January 2021 which may affect the information provided on this page.
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