Seller Forums
Sign in
Sign in
user profile
Sign in
user profile
Sign in
user profile
News_Amazon

Update to Amazon UK and EU agreements and VAT treatment

Effective August 1, 2024, Selling on Amazon, Fulfilment by Amazon, and all other services currently supplied by Amazon Services Europe S.à r.l. (ASE) will be supplied by Amazon EU S.à r.l. (AEU). All agreements, policies, terms and conditions currently referring to ASE, including Amazon Payments agreements, will be updated to AEU. Additionally, all invoices issued by Amazon will be issued by AEU instead of ASE after August 1, 2024.

If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment. As a result, local VAT rules apply and and VAT will be charged on your Amazon fees. In the majority of cases, we expect that you will be able to recover this VAT through your normal VAT return process.

We recommend that you contact your tax advisor for more information on recovering VAT as per your country of establishment's local regulations.

If your company is not established in the countries listed above, you will be invoiced by the AEU head office in Luxembourg, and there will be no change to how VAT is applied on Amazon fees.

Note: This change doesn't impact your account access, listings, product pricing, customer reviews, selling services or the price of services.

For more information, go to Update to Amazon UK and EU seller services entity and VAT treatment.

3.3K views
201 replies
Tags:News and announcements
121
Reply
201 replies
user profile
Seller_8pu1BcITpOjUp

can anyone tell me what happens if you are not VAT registered as you fall under the threshold? does this mean that FBA and seller fees will be 20% extra and that because we are not registered for VAT this will be an additional cost that we cannot recover?

10
user profile
Seller_nRhZxElkqUPAM

So how about if you are UK based but have accounts in DE.

Will you reclaim for UK and DE in the UK have to do them separately?

20
user profile
Seller_a7KfTOsGyRvnj

How do we get a proper statement from 1st August showing VAT on fees?

20
user profile
Seller_XEL6qq7YDef5M

Subject: Urgent Clarification Needed on VAT Application on Amazon Fees

Hello Amazon Team,

I am a UK-based seller, and I have serious concerns regarding the recent update about VAT treatment effective August 1, 2024. I would greatly appreciate clarification on the following points:

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

What is Amazon’s guidance or support for handling VAT reclaims in each country?

Challenges with VAT Reclamation:

I have had very bad experiences reclaiming VAT from France, with delays extending over three years. This situation has caused significant financial strain. The potential requirement to reclaim VAT from multiple countries could severely impact cash flow and potentially bankrupt many businesses, especially when VAT constitutes 20% on top of Amazon fees, which already take up around 50% of turnover.

Given the gravity of these concerns, I urge Amazon to provide detailed guidance and support for sellers on these points. It is crucial to understand how these changes will be implemented and what measures will be in place to assist sellers with VAT reclaims efficiently.

Thank you for your prompt attention to these urgent issues.

160
user profile
Seller_0L2wIKRLuFYXz

This is probably all linked to the place of establishment vat issue that happened,

20
user profile
Seller_dBkFAAKkpAi1G

I received your new policy notice yesterday, which stated:

After August 1, 2024, your withdrawal amount will change. Local VAT rules will apply to fees charged by Amazon, and we will deduct the relevant VAT when charging fees;

What impact does this policy have on us? Do you need to withhold VAT on every order placed by Amazon registered by local companies (UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium and Sweden)?

I understand that local companies also have to start withholding VAT? Our company was established in Northern Ireland. I don’t quite understand whether it needs to be withheld. I need your answer.

00
user profile
Seller_76AUwmqvSyRIM
user profile
Seller_XEL6qq7YDef5M

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

View post

The announcement is not ambiguous. It is crystal clear.

user profile
News_Amazon
If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment.
View post
Post edited

You will be charged by the AEU country in your country of establishment. So if, for example, you are established in the UK, you will be charged by Amazon UK for ALL UK and EU sales. The invoices will include VAT and you will have to reclaim that VAT from HMRC in the standard way.

30
user profile
Seller_h3ZUmYDTn4dAs

at least it can't get any worse

70
user profile
Seller_rCJ7QkwtaCHwv

Hello, Could you please clarify what happens if you are on the flat rate scheme? On the flat rate scheme you cannot re-claim vat so it would not be right for Amazon to take the 20% as the sellers cannot reclaim the difference from HMRC. I am assuming Amazon will have a filter for flat rate companies where we can input out rate? Say, 7.5%. Or, this will be left as is and the rules not affect flat rate vat sellers? Looking forward to your reply so we can better prepare for the changes ahead.

00
user profile
Seller_MT8rt0A2OpbCx

Personally, I think this is fairer for VAT registered sellers. Currently, if you are VAT registered, we pay 20% of profits to HMRC. For non VAT registered, they can keep that 20% plus, essentially, have another 20% off Amazon selling fees.

82
user profile
News_Amazon

Update to Amazon UK and EU agreements and VAT treatment

Effective August 1, 2024, Selling on Amazon, Fulfilment by Amazon, and all other services currently supplied by Amazon Services Europe S.à r.l. (ASE) will be supplied by Amazon EU S.à r.l. (AEU). All agreements, policies, terms and conditions currently referring to ASE, including Amazon Payments agreements, will be updated to AEU. Additionally, all invoices issued by Amazon will be issued by AEU instead of ASE after August 1, 2024.

If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment. As a result, local VAT rules apply and and VAT will be charged on your Amazon fees. In the majority of cases, we expect that you will be able to recover this VAT through your normal VAT return process.

We recommend that you contact your tax advisor for more information on recovering VAT as per your country of establishment's local regulations.

If your company is not established in the countries listed above, you will be invoiced by the AEU head office in Luxembourg, and there will be no change to how VAT is applied on Amazon fees.

Note: This change doesn't impact your account access, listings, product pricing, customer reviews, selling services or the price of services.

For more information, go to Update to Amazon UK and EU seller services entity and VAT treatment.

3.3K views
201 replies
Tags:News and announcements
121
Reply
user profile

Update to Amazon UK and EU agreements and VAT treatment

by News_Amazon

Effective August 1, 2024, Selling on Amazon, Fulfilment by Amazon, and all other services currently supplied by Amazon Services Europe S.à r.l. (ASE) will be supplied by Amazon EU S.à r.l. (AEU). All agreements, policies, terms and conditions currently referring to ASE, including Amazon Payments agreements, will be updated to AEU. Additionally, all invoices issued by Amazon will be issued by AEU instead of ASE after August 1, 2024.

If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment. As a result, local VAT rules apply and and VAT will be charged on your Amazon fees. In the majority of cases, we expect that you will be able to recover this VAT through your normal VAT return process.

We recommend that you contact your tax advisor for more information on recovering VAT as per your country of establishment's local regulations.

If your company is not established in the countries listed above, you will be invoiced by the AEU head office in Luxembourg, and there will be no change to how VAT is applied on Amazon fees.

Note: This change doesn't impact your account access, listings, product pricing, customer reviews, selling services or the price of services.

For more information, go to Update to Amazon UK and EU seller services entity and VAT treatment.

Tags:News and announcements
121
3.3K views
201 replies
Reply
201 replies
201 replies
Quick filters
Sort by
user profile
Seller_8pu1BcITpOjUp

can anyone tell me what happens if you are not VAT registered as you fall under the threshold? does this mean that FBA and seller fees will be 20% extra and that because we are not registered for VAT this will be an additional cost that we cannot recover?

10
user profile
Seller_nRhZxElkqUPAM

So how about if you are UK based but have accounts in DE.

Will you reclaim for UK and DE in the UK have to do them separately?

20
user profile
Seller_a7KfTOsGyRvnj

How do we get a proper statement from 1st August showing VAT on fees?

20
user profile
Seller_XEL6qq7YDef5M

Subject: Urgent Clarification Needed on VAT Application on Amazon Fees

Hello Amazon Team,

I am a UK-based seller, and I have serious concerns regarding the recent update about VAT treatment effective August 1, 2024. I would greatly appreciate clarification on the following points:

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

What is Amazon’s guidance or support for handling VAT reclaims in each country?

Challenges with VAT Reclamation:

I have had very bad experiences reclaiming VAT from France, with delays extending over three years. This situation has caused significant financial strain. The potential requirement to reclaim VAT from multiple countries could severely impact cash flow and potentially bankrupt many businesses, especially when VAT constitutes 20% on top of Amazon fees, which already take up around 50% of turnover.

Given the gravity of these concerns, I urge Amazon to provide detailed guidance and support for sellers on these points. It is crucial to understand how these changes will be implemented and what measures will be in place to assist sellers with VAT reclaims efficiently.

Thank you for your prompt attention to these urgent issues.

160
user profile
Seller_0L2wIKRLuFYXz

This is probably all linked to the place of establishment vat issue that happened,

20
user profile
Seller_dBkFAAKkpAi1G

I received your new policy notice yesterday, which stated:

After August 1, 2024, your withdrawal amount will change. Local VAT rules will apply to fees charged by Amazon, and we will deduct the relevant VAT when charging fees;

What impact does this policy have on us? Do you need to withhold VAT on every order placed by Amazon registered by local companies (UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium and Sweden)?

I understand that local companies also have to start withholding VAT? Our company was established in Northern Ireland. I don’t quite understand whether it needs to be withheld. I need your answer.

00
user profile
Seller_76AUwmqvSyRIM
user profile
Seller_XEL6qq7YDef5M

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

View post

The announcement is not ambiguous. It is crystal clear.

user profile
News_Amazon
If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment.
View post
Post edited

You will be charged by the AEU country in your country of establishment. So if, for example, you are established in the UK, you will be charged by Amazon UK for ALL UK and EU sales. The invoices will include VAT and you will have to reclaim that VAT from HMRC in the standard way.

30
user profile
Seller_h3ZUmYDTn4dAs

at least it can't get any worse

70
user profile
Seller_rCJ7QkwtaCHwv

Hello, Could you please clarify what happens if you are on the flat rate scheme? On the flat rate scheme you cannot re-claim vat so it would not be right for Amazon to take the 20% as the sellers cannot reclaim the difference from HMRC. I am assuming Amazon will have a filter for flat rate companies where we can input out rate? Say, 7.5%. Or, this will be left as is and the rules not affect flat rate vat sellers? Looking forward to your reply so we can better prepare for the changes ahead.

00
user profile
Seller_MT8rt0A2OpbCx

Personally, I think this is fairer for VAT registered sellers. Currently, if you are VAT registered, we pay 20% of profits to HMRC. For non VAT registered, they can keep that 20% plus, essentially, have another 20% off Amazon selling fees.

82
user profile
Seller_8pu1BcITpOjUp

can anyone tell me what happens if you are not VAT registered as you fall under the threshold? does this mean that FBA and seller fees will be 20% extra and that because we are not registered for VAT this will be an additional cost that we cannot recover?

10
user profile
Seller_8pu1BcITpOjUp

can anyone tell me what happens if you are not VAT registered as you fall under the threshold? does this mean that FBA and seller fees will be 20% extra and that because we are not registered for VAT this will be an additional cost that we cannot recover?

10
Reply
user profile
Seller_nRhZxElkqUPAM

So how about if you are UK based but have accounts in DE.

Will you reclaim for UK and DE in the UK have to do them separately?

20
user profile
Seller_nRhZxElkqUPAM

So how about if you are UK based but have accounts in DE.

Will you reclaim for UK and DE in the UK have to do them separately?

20
Reply
user profile
Seller_a7KfTOsGyRvnj

How do we get a proper statement from 1st August showing VAT on fees?

20
user profile
Seller_a7KfTOsGyRvnj

How do we get a proper statement from 1st August showing VAT on fees?

20
Reply
user profile
Seller_XEL6qq7YDef5M

Subject: Urgent Clarification Needed on VAT Application on Amazon Fees

Hello Amazon Team,

I am a UK-based seller, and I have serious concerns regarding the recent update about VAT treatment effective August 1, 2024. I would greatly appreciate clarification on the following points:

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

What is Amazon’s guidance or support for handling VAT reclaims in each country?

Challenges with VAT Reclamation:

I have had very bad experiences reclaiming VAT from France, with delays extending over three years. This situation has caused significant financial strain. The potential requirement to reclaim VAT from multiple countries could severely impact cash flow and potentially bankrupt many businesses, especially when VAT constitutes 20% on top of Amazon fees, which already take up around 50% of turnover.

Given the gravity of these concerns, I urge Amazon to provide detailed guidance and support for sellers on these points. It is crucial to understand how these changes will be implemented and what measures will be in place to assist sellers with VAT reclaims efficiently.

Thank you for your prompt attention to these urgent issues.

160
user profile
Seller_XEL6qq7YDef5M

Subject: Urgent Clarification Needed on VAT Application on Amazon Fees

Hello Amazon Team,

I am a UK-based seller, and I have serious concerns regarding the recent update about VAT treatment effective August 1, 2024. I would greatly appreciate clarification on the following points:

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

What is Amazon’s guidance or support for handling VAT reclaims in each country?

Challenges with VAT Reclamation:

I have had very bad experiences reclaiming VAT from France, with delays extending over three years. This situation has caused significant financial strain. The potential requirement to reclaim VAT from multiple countries could severely impact cash flow and potentially bankrupt many businesses, especially when VAT constitutes 20% on top of Amazon fees, which already take up around 50% of turnover.

Given the gravity of these concerns, I urge Amazon to provide detailed guidance and support for sellers on these points. It is crucial to understand how these changes will be implemented and what measures will be in place to assist sellers with VAT reclaims efficiently.

Thank you for your prompt attention to these urgent issues.

160
Reply
user profile
Seller_0L2wIKRLuFYXz

This is probably all linked to the place of establishment vat issue that happened,

20
user profile
Seller_0L2wIKRLuFYXz

This is probably all linked to the place of establishment vat issue that happened,

20
Reply
user profile
Seller_dBkFAAKkpAi1G

I received your new policy notice yesterday, which stated:

After August 1, 2024, your withdrawal amount will change. Local VAT rules will apply to fees charged by Amazon, and we will deduct the relevant VAT when charging fees;

What impact does this policy have on us? Do you need to withhold VAT on every order placed by Amazon registered by local companies (UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium and Sweden)?

I understand that local companies also have to start withholding VAT? Our company was established in Northern Ireland. I don’t quite understand whether it needs to be withheld. I need your answer.

00
user profile
Seller_dBkFAAKkpAi1G

I received your new policy notice yesterday, which stated:

After August 1, 2024, your withdrawal amount will change. Local VAT rules will apply to fees charged by Amazon, and we will deduct the relevant VAT when charging fees;

What impact does this policy have on us? Do you need to withhold VAT on every order placed by Amazon registered by local companies (UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium and Sweden)?

I understand that local companies also have to start withholding VAT? Our company was established in Northern Ireland. I don’t quite understand whether it needs to be withheld. I need your answer.

00
Reply
user profile
Seller_76AUwmqvSyRIM
user profile
Seller_XEL6qq7YDef5M

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

View post

The announcement is not ambiguous. It is crystal clear.

user profile
News_Amazon
If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment.
View post
Post edited

You will be charged by the AEU country in your country of establishment. So if, for example, you are established in the UK, you will be charged by Amazon UK for ALL UK and EU sales. The invoices will include VAT and you will have to reclaim that VAT from HMRC in the standard way.

30
user profile
Seller_76AUwmqvSyRIM
user profile
Seller_XEL6qq7YDef5M

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

View post

The announcement is not ambiguous. It is crystal clear.

user profile
News_Amazon
If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment.
View post
Post edited

You will be charged by the AEU country in your country of establishment. So if, for example, you are established in the UK, you will be charged by Amazon UK for ALL UK and EU sales. The invoices will include VAT and you will have to reclaim that VAT from HMRC in the standard way.

30
Reply
user profile
Seller_h3ZUmYDTn4dAs

at least it can't get any worse

70
user profile
Seller_h3ZUmYDTn4dAs

at least it can't get any worse

70
Reply
user profile
Seller_rCJ7QkwtaCHwv

Hello, Could you please clarify what happens if you are on the flat rate scheme? On the flat rate scheme you cannot re-claim vat so it would not be right for Amazon to take the 20% as the sellers cannot reclaim the difference from HMRC. I am assuming Amazon will have a filter for flat rate companies where we can input out rate? Say, 7.5%. Or, this will be left as is and the rules not affect flat rate vat sellers? Looking forward to your reply so we can better prepare for the changes ahead.

00
user profile
Seller_rCJ7QkwtaCHwv

Hello, Could you please clarify what happens if you are on the flat rate scheme? On the flat rate scheme you cannot re-claim vat so it would not be right for Amazon to take the 20% as the sellers cannot reclaim the difference from HMRC. I am assuming Amazon will have a filter for flat rate companies where we can input out rate? Say, 7.5%. Or, this will be left as is and the rules not affect flat rate vat sellers? Looking forward to your reply so we can better prepare for the changes ahead.

00
Reply
user profile
Seller_MT8rt0A2OpbCx

Personally, I think this is fairer for VAT registered sellers. Currently, if you are VAT registered, we pay 20% of profits to HMRC. For non VAT registered, they can keep that 20% plus, essentially, have another 20% off Amazon selling fees.

82
user profile
Seller_MT8rt0A2OpbCx

Personally, I think this is fairer for VAT registered sellers. Currently, if you are VAT registered, we pay 20% of profits to HMRC. For non VAT registered, they can keep that 20% plus, essentially, have another 20% off Amazon selling fees.

82
Reply

Similar Discussions

Similar Discussions

Go to original post