Review your list prices to ensure these are inclusive of VAT
Question to booksellers planning to sell in different EU countries past July 1st,
How will handle Amazon’s requirement of selling at a VAT inclusive rate when books in Europe have 11 different rates?
Will you just round up the expected VAT and exclude outlier destinations with higher tax rates such as Bulgaria 20% and Denmark 25%?
As a general thought to Amazon wouldn’t it be much better for Amazon to charge a different VAT rate per country in the same way a different state tax is charged in the US?
Your views are greatly appreciated.
Thanks,
Mr. Holmes
Review your list prices to ensure these are inclusive of VAT
Question to booksellers planning to sell in different EU countries past July 1st,
How will handle Amazon’s requirement of selling at a VAT inclusive rate when books in Europe have 11 different rates?
Will you just round up the expected VAT and exclude outlier destinations with higher tax rates such as Bulgaria 20% and Denmark 25%?
As a general thought to Amazon wouldn’t it be much better for Amazon to charge a different VAT rate per country in the same way a different state tax is charged in the US?
Your views are greatly appreciated.
Thanks,
Mr. Holmes
6 replies
Seller_6fydnvOwuH7PO
My understanding is that that is exactly how they are going to do it.
I.e. Amazon first removes the marketplace domestic VAT from list price, then adds destination country VAT - this is somewhat similar to how VCS and Amazon’s own sales work.
But I didn’t find any explicit mention of this yet on the VAT change help pages.
Edit: … at least for non-EU-established sellers, that is. Not 100% sure what the plan is for EU established ones.
Seller_f5cnodyVjLD4S
That is exactly what they are going to do…
From July 1, 2021 The VAT rate collected and remitted by Amazon will be the one applied in the country of delivery to your customer for those goods
For example, if the goods are delivered to a customer address in Spain, Amazon will apply the relevant Spanish VAT rate.
https://sellercentral-europe.amazon.com/gc/vat-education/eu-dr?ref=sc_vat_ed_iossemail1
