What is VAT?
VAT, in the European Union and the UK, is a consumption tax assessed on the value added to goods and services. It applies to goods and services that are bought and sold for use or consumption in the European Union or UK.
When are you obliged to register for VAT in a country?
Generally speaking, VAT registration might be needed for the following sellers:
All (EU and UK) sellers who sell above certain thresholds in their country of establishment where they are established in either the EU or UK. As of April 2018, the thresholds are €82,800 in France, £85,000 in the United Kingdom and €17,500 in Germany, whereas no such registration threshold exists in Spain. The method of calculation and application of the threshold might differ from country to country.
All EU and non-EU sellers who sell above certain thresholds to private customers (non-VAT registered) from one EU country into another EU country, commonly referred to as “distance selling.” As of April 2018, the thresholds are €100,000 for Germany, and €35,000 for France, Italy, and Spain. The method of calculation and application of the threshold might differ from country to country.
All EU and non-EU sellers who hold inventory in different EU country than the one in which they are established.
All EU and non-EU sellers who transfer their goods from one EU country into another EU country.
The situations listed above do not cover every situation in which VAT registration may be required in a country. In order to help you to determine whether or not a VAT registration may be required according to your specific circumstances, please use this test here
. If you are unsure about your registration requirements, please speak with your external tax advisor. The VAT registration thresholds of each country are subject to change.
How does VAT Services on Amazon work for VAT filings?
Please see the page Process Overview to learn more about filing on VAT Services on Amazon.
Setting up VAT Services on Amazon
There are 4 actions which you should take before you begin filing through VAT Services on Amazon:
Confirm that your default Seller Central shipping address is up to date: You can check your default Seller Central shipping address by navigating to "Settings", and then "Shipping Settings" from the ribbon at the top of Seller Central. If you then select "General Shipping Settings", you will see your default shipping address.
Update your default and item-specific Product Tax Codes: To ensure that you are assigning the correct VAT rate to your products, you should update your Product Tax Codes. Learn more.
Ensure that you have submitted an "opt-out" declaration in all EU countries where you ship your inventory from.
Download and review your Product Tax File: If you navigate to "File your VAT" and then click on "View Product Tax File", on this page you can download and review your Product Tax File.
You are now all ready. You just need to complete your routine monthly procedures in order to submit your VAT filings every month. Learn more on the recommended monthly procedures here.
What does the tax agent do once your VAT filings have been generated?
Once you have reviewed your VAT filings and the filing preparation window has closed, your tax agent will begin submitting your VAT filings to the relevant tax authorities unless you have contacted us by the deadline to discuss the content of any of your VAT filings.
Payment of the liability for your VAT filings is not made by your tax agent. Making payments to the tax authorities is your responsibility. Learn more about how to make your VAT payments here.
What is the tax agent’s role in VAT Services on Amazon?
For the purpose of this service offering, a tax agent is the third-party company who can help you fulfill your legally required VAT filing obligations. The tax agent’s duties might include the following and more:
Helping you to register for VAT.
Preparing your VAT filings and submitting them on your behalf.
Sending notifications to tax authorities on any change in circumstances, such as opting out of taxing in the departure country for distance sales.
ssisting with any tax authorities’ questions or audits.
Note: A tax agent is not an adviser and as a result, the tax agent will, in this capacity, not provide tax advice.
What is Amazon’s role in VAT Services on Amazon?
Amazon maintains and hosts VAT Services on Amazon. In addition, Amazon assists you with the following:
We consolidate all of your transaction details for both Amazon and off-Amazon transactions.
We notify you of basic errors in uploaded data by alerting you in your VAT transaction reports. A full review of your VAT transactions is not carried out, only basic errors will be notified.
We transfer the consolidated data to your tax agent in order to prepare your filings.
We provide support services in case you need assistance.
Note: Amazon does not prepare your VAT filings or submit them to the tax authorities, and cannotis unable to correspond with tax authorities on your behalf. Amazon is also not a tax adviser and as a result, Amazon will, in this capacity, not provide tax advice.
How should I contact for help?
If you have a technical problem, we recommend that you visit the VAT Services on Amazon support centre here.
If you are unable to find an answer to your question, please contact us.