Updated on June 28, 2022
Vat in the European Union: Common Questions and Answers
Please keep in mind that nothing on this page should be construed as tax, legal, or any other type of professional advice. Tax experts can help you comprehend European Union VAT requirements (EU).
Under European Union Value Added Tax (EU VAT) legislation, the following criteria must be met for Amazon to calculate and collect EU VAT on monthly membership fees and selling fees:
No EU VAT registration number; and are a European Union citizen; and sell goods on a website outside of the EU.
Note: Amazon Payments, Checkout by Amazon, Fulfillment by Amazon, and tax calculation service fees are not affected by this change.
A reverse charge method may be used to collect EU VAT on sales made to sellers who have an EU VAT registration number.
How does Amazon calculate the EU VAT on monthly subscription fees and Selling on Amazon fees?
Any monthly subscription fees or Selling on Amazon costs will be charged at the usual VAT rate in your EU country of residence.
Why is Amazon charging EU VAT to my account if I only am required to be VAT-registered when my turnover (net sales) is above the minimum threshold?
regardless of turnover, ESS are taxed in the EU nation in which the client (Amazon seller) resides (net sales). In the event that you live in the European Union, Amazon will collect EU VAT on your monthly fees and Selling on Amazon costs unless you provide us with your EU VAT registration number.
For more information, see European Commission Telecommunications, broadcasting & electronic services.
How do I provide my EU VAT registration number to Amazon?
If you are a resident of an EU country and have an EU VAT registration number, please provide this information to Amazon on the European VAT Information page in Seller Central. Alternatively, you can email Amazon Seller Support a copy of your EU VAT registration certificate.
How do I obtain an EU VAT registration number?
To register for tax purposes in several European nations, you can do so on the tax authority’s website. In order to comply with EU VAT regulations, you may be required to produce reports and issue EU VAT invoices. For further information, contact your tax advisor.
Why is Amazon charging EU VAT to my seller account if I have not made any sales?
Amazon is compelled by EU law to impose VAT on monthly subscription fees, which are ESS since they are delivered over the Internet or an electronic network.
For more information, see European Commission list of electronically supplied services.
I don’t have an EU VAT registration number. What information does Amazon require in order for my account to be reviewed for EU VAT exemption on my monthly subscription fees and Selling on Amazon fees?
Contact Amazon Seller Support with the documentation below to be exempt from EU VAT on your monthly subscription fees and Selling on Amazon fees.
Send a copy of your firm registration certificate to Amazon, including the date on which registration took effect.
Tax agency verification that you’re a sole trader (self-employed) and the date you registered as a sole trader with your tax agency must be provided to Amazon.
Why is Amazon continuing to collect EU VAT when I have provided a valid EU VAT registration number?
When a customer places an order, Amazon automatically calculates EU VAT and adds it to the seller’s account at the time of shipment. Since you have not yet given your EU VAT registration number, EU VAT may still be collected on orders placed previous to the time you did so.
I updated my information to reflect my current address. Why is Amazon continuing to collect EU VAT?
EU VAT is calculated by Amazon at the time of purchase and collected by Amazon at the time of shipment. In order to decide if EU VAT should be collected, Amazon looks at a seller’s account information, including shipping and billing addresses, at the time of a transaction. Because of this, orders placed previous to the time you altered your address may still be charged EU VAT.
Make a thorough check of your seller account information by going to Seller Account Information and going through each section one by one. Be aware that your seller account may have many addresses and payment methods linked to it.
I am no longer a resident of the EU, and I have updated all my information to reflect my current address. Can Amazon refund previously-charged EU VAT to my seller account?
Based on the information in your seller account, Amazon is required to charge and remit EU VAT. Amazon was able to link your account with the EU at the time the EU VAT was collected. A valid EU VAT registration number or certificate is required for Amazon to issue a refund for European Union VAT, which cannot be issued without it.
How do I receive a refund for previously-charged EU VAT on my seller account?
To begin, go to the European VAT Information page in Seller Central and enter your EU VAT registration number.
The EU VAT charged to your seller account must then be refunded through Amazon Seller Support. A copy of your EU VAT registration certificate can be attached to your email to Seller Support if you do not have an EU VAT registration number.
It can take up to 90 days for EU VAT refunds in the EU to be processed. Amazon will notify you when your request has been processed. If your refund request is approved, you will be notified via email when to expect a credit to your seller account.
Will Amazon provide me with an EU VAT invoice for any EU VAT collected on my monthly subscription fees and Selling on Amazon fees?
Sellers charged EU VAT on monthly subscription fees and Selling on Amazon costs will receive an Amazon invoice each month. Invoices for your seller account will be emailed to the primary email address we have on file for you each month.
Seller Central > Reports > Tax Document Library > Seller Fee Tax Invoices is another place where you may see your monthly invoices.
Why did I not receive an EU VAT tax invoice?
If you’ve provided Amazon with a valid EU VAT registration number or if you don’t pay any monthly membership fees and your account hasn’t had any sales activity for the month, you will not receive an EU VAT tax invoice.
I have added my EU VAT registration number in my seller account. Can Amazon send me updated invoices with my EU VAT registration number?
If you have made any modifications to your seller account, Amazon will not update your invoices to reflect those changes.
Can Amazon help me with my tax return?
Tax advice and compliance are not services we offer despite our desire to assist sellers. In the event that you have any questions concerning taxes or need help completing your tax returns, please contact a tax professional. Please note that this list is for the use of our sellers only. See External Tax Advisors for more information. Tax advisors are not endorsed by Amazon.
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