Tax on Remote Services FAQ
What are remote services and when are they subject to tax?
Many jurisdictions have enacted “remote services” tax rules, which require non-resident service providers (such as Amazon) to charge, collect and remit value added taxes (“VAT”), which includes VAT, GST, consumption tax and other similar transaction taxes from their customers (such as selling partners on Amazon online stores). In most countries, the services in scope for taxation are referred to as “Electronically Supplied Services” (“ESS”), although the scope varies by country and in some cases includes almost all services provided by a remote supplier.
ESS is generally defined as any service which are classified as following:
- Delivered over the internet
- Essentially automated and involves minimal human intervention
- Would be impossible to provide without information technology
When does Amazon charge tax on remote services?
In most jurisdictions, listing fees, such as Selling on Amazon (“SoA”), and advertising fees, such as Amazon Sponsored Advertising (“advertising”), fall within the definition of remote services and ESS tax rules. Fulfilment by Amazon (“FBA”) and related fees generally fall outside of the scope of such rules.
If the following conditions are true, then Amazon may be required to charge you VAT on your SoA and advertising fees:
-
You purchase services from an Amazon store outside of the jurisdiction in which your business is located
- For example: Your business is located in Germany and you purchase SoA to make sales on Amazon.com
- The jurisdiction in which your business is located taxes the remote sale of services
Most jurisdictions that tax remote services do not require non-resident service providers to charge VAT to business customers. To support this treatment, the recipient of the service typically must provide its VAT or Tax ID to the service provider.
The chart below shows jurisdictions where Amazon charges tax on the remote sale of services as required under local law. It also shows whether the provision of a VAT or Tax ID impacts taxability. Note that tax rules can change frequently and the information below may become outdated. This information is provided for reference only and should not be relied upon. If you have questions, consult your tax advisor.| Your business location | If I provide my Tax ID, will my fees be taxed? | If I DO NOT provide my Tax ID, will my fees be taxed? |
|---|---|---|
| European Union | No | Yes |
| Outermost regions of EU | ||
| Martinique (MQ) | No | Yes |
| Reunion Island (RE) | No | Yes |
| Guadeloupe (GP) | No | Yes |
| Non-EU Countries in Europe | ||
| Albania (AL) | No | Yes |
| Belarus (BY) | No | Yes |
| Canary Islands (IC) | No | Yes |
| Iceland (IS) | No | Yes |
| Moldova (MD) | No | Yes |
| Norway (NO) | No | Yes |
| Ukraine (UA) | No | Yes |
| Serbia (RS) | Yes | Yes |
| Switzerland (CH) & Busingen & Liechtenstein (LI) | Yes | Yes |
| United Kingdom (GB) | No | Yes |
| Asia | ||
| Armenia (AM) | No | Yes |
| Bahrain (BH) | No | Yes |
| Bangladesh (BD) | No | Yes (advertising only) |
| Cambodia (KH) | No | Yes |
| India (IN) | No | Yes (advertising only) |
| Indonesia (ID) | Yes | Yes |
| Japan (JP) | N/A* | Yes (SoA only) |
| Laos (LA) | Yes | Yes |
| Kazakhstan (KZ) | No | Yes |
| Kyrgyzstan (KG) | Yes | Yes |
| Nepal (NP) | No | Yes |
| Uzbekistan (UZ) | No | Yes |
| Malaysia (MY) | Yes | Yes |
| Oman (OM) | No | Yes |
| Saudi Arabia (SA) | No | Yes |
| Singapore (SG) | No | Yes |
| South Korea (KR) | No | Yes |
| China (CN)-Taiwan (TW) | No | Yes |
| United Arab Emirates (UAE) | No | Yes |
| Vietnam (VN) | Yes | Yes |
| Africa | ||
| Benin (BJ) | No | Yes |
| Côte d’Ivoire (CI) | Yes | Yes |
| Cameroon (CM) | Yes | Yes |
| Egypt (EG) | No | Yes |
| Ghana (GH) | Yes | Yes |
| Kenya (KE) | Yes | Yes |
| Nigeria (NG) | Yes | Yes |
| Senegal (SN) | Yes | Yes |
| South Africa (ZA) | Yes | Yes |
| Tanzania (TZ) | No | Yes |
| Uganda (UG) | No | Yes |
| Zambia (ZM) | Yes | Yes |
| Zimbabwe (ZW) | Yes | Yes |
| Oceania | ||
| Australia (AU) | No | Yes |
| New Zealand (NZ) | No | Yes |
| North America | ||
| Bahamas (BS) | Yes | Yes |
| Barbados (BB) | Yes | Yes |
| Canada (CA) | No | Yes |
| British Columbia (CA-BC) | Yes | Yes |
| Saskatchewan (CA-SK) | Yes | Yes |
| Quebec (CA-QC) | No | Yes |
| Costa Rica (CR) | Yes | Yes |
| Mexico (MX) | Yes (SoA only) | Yes (SoA only) |
| South America | ||
| Chile (CL) | No | Yes |
| Colombia (CO) | No | Yes (advertising only) |
| Peru (PE) | No | Yes |
| Suriname (SR) | No | Yes |
| Transcontinental | ||
| Georgia (GE) | No | Yes |
| Russia (RU) | No | Yes |
| Turkey (TR) | No | Yes |
*There is no Tax ID system in Japan. Whether remote sales of services are subject to tax in Japan depends on the nature of the service. At this time, remote sales of SoA are subject to consumption tax and remote sales of advertising are not.
How do I provide my Tax ID to Amazon?
- Sign in to Seller Central.
- Go to Settings and then select Account Info.
- Select Tax Information and select VAT/GST Registration Numbers.
- Click Add a VAT/GST registration number.
- From the list of countries, select your business location and add your Tax ID
- Click Add number.
How does Amazon determine my location?
Amazon uses the details you provide in your Seller Central account to determine the location of you and/or your business. Relevant account details include, but are not limited to:
- Business Address
- VAT registration number(s)
- Default Shipping Address and Return Address Settings
- Banking information
- Credit card information
To ensure that you are taxed correctly, you must keep your account details accurate and up to date. Failure to do so may result in incorrect tax calculations and additional costs to you or your business.
Account information mentioned above can be updated by navigating to Settings > Account Info.
What is my business address?
The address you provide as your Business Address must represent your primary place of business where you receive services from Amazon. Typically, your business address is where you have registered your business and where its management is located. For non-Amazon business sellers, this represents your usual place of residence.
Amazon may perform identity checks to confirm your business belongs at and operates from this address.
What VAT information do I need to provide to ensure I am properly taxed?
At a minimum, you should provide your Tax ID or VAT registration number issued in the same country as your business address. Failure to provide this Tax ID or VAT registration number may result in incorrect tax charges.
Note: You may also provide other VAT registration numbers belonging to your business in countries outside of your business address country.
What are my default shipping address and return address?
The default shipping address you provide must represent the main address from which you self-fulfil orders. Note that this address may be used by Amazon to determine the originating jurisdiction for your sales.
Your return address is the main address you use to accept returns from your customers.
Will Amazon provide me with an invoice for tax collected on my fees?
Invoicing requirements for taxable sales of remote services vary by jurisdiction. Amazon will supply an invoice when legally required to do so.
Where can I find invoices in my Seller Central Account?
To view tax invoices, go to Seller Central > Reports > Tax Document Library > Seller Fee Tax Invoices.
I did not receive an invoice for my purchase of services. Where can I find the amount of tax I was charged?
Regardless of whether Amazon issues an invoice or not, you may review VAT charges in date range reports. You can view these reports by going to Seller Central > Payments > Reports Repository > and selecting a transaction report for a particular time frame.
I do not have a Tax ID or VAT ID. How do I get one?
The process of obtaining a Tax ID or VAT ID varies by jurisdiction. For more information, consult the relevant tax authority website or your tax advisor. If your country does not have VAT or does not tax remote services, you may still provide your VAT or other Tax ID in your Seller Central account.
How do I receive a refund for incorrectly charged tax on my fees?
As described above, Amazon calculates VAT on your fees based on the business information you have supplied.
If you believe you were incorrectly charged, you may request a refund for previously-charged VAT.
To enquire if a refund is available:-
Contact Amazon Selling Partner Support through the Contact Us form.
- Choose Selling on Amazon.
- Click My issue is not listed.
- Under What do you need help with?, request a refund of the incorrectly charged tax.
- You will receive an update for your case when your request has been processed. The update will provide the estimated date when you can expect to receive a refund in your seller account if your request was approved.
Can Amazon help me with my tax return?
While Amazon is committed to helping our sellers, we do not provide tax advisory or compliance services. Contact your Tax Advisor if you have any questions about taxes or need assistance with your tax returns. Amazon maintains a list of third-party tax advisors as a resource for sellers. Amazon does not endorse the services of any tax advisor.
