VAT Services on Amazon
Amazon VAT Service
Amazon VAT Service program can be beneficial for sellers, who are required to register for VAT in countries where they sell. There are several reasons a seller may choose to use Amazon’s VAT services.
Amazon can assist sellers with their VAT registration, filing, and compliance obligations via a third-party tax service provider in up to 7 countries (UK, Germany, France, Italy, Spain, Poland and the Czech Republic). Amazon provides tools and resources to help sellers manage their VAT obligations, including the VAT Calculation Service.
VAT Services on Amazon program can provide simplified VAT registration, automated VAT calculation, compliance assistance, enhanced customer experience, and cost-effectiveness.
What is VAT for UK or EU Amazon Seller account?
If you are an Amazon seller account, whether you need to register for VAT (Value Added Tax). It is depend on several factors. It can be your location, the location of your customers, and the value of your sales.
In general, if you are selling goods from one EU country to another, you will need VAT number in the country of destination if you exceed the threshold for distance sales. The threshold varies from country to country but is generally around €10,000-€85,000. If you are selling goods within the same country, you will need to register for VAT if you exceed the national threshold, which also varies.
It’s recommended to consult with an amazon seller accountant or tax professional to ensure that you are meeting all of your VAT obligations as an overseas FBA Amazon seller. FZCO can provide you with guidance on the specific rules and regulations that apply to your situation.
VAT for FBA UK Amazon Sellers
VAT registered UK Amazon FBA (Fulfillment by Amazon) seller, you are required to charge VAT on your sales to customers within the UK and other EU countries, depending on your sales volume and location.
Register for VAT: You need to register for VAT if your sales exceed the current threshold. If you are below the threshold, you can still voluntarily register for VAT.
Set up your Amazon seller account for VAT: You need to ensure that your Amazon seller account is set up to correctly charge and account for VAT on your sales.
VAT for Overseas Amazon FBA Sellers (non-UK, EU)
If you are an overseas Amazon FBA (Fulfillment by Amazon) seller, selling to customers in the UK or EU. You may need to register for and charge VAT and VAT calculation depending on your sales volume and location.
Imports VAT : If you are importing goods into the UK or EU, you may need to pay import VAT and customs duties.
VAT Returns: You need to submit regular VAT returns to the tax authorities in the UK or other EU countries where you are registered.
Record keeping: You need to keep accurate records of your VAT transactions, including invoices and receipts.
VAT for Overseas Amazon FBA Sellers (non-UK, non-EU)
If you are an overseas FBA Amazon (Fulfillment by Amazon) seller, selling to customers in the UK or EU, and you are not based in the UK or EU, you will require to register for VAT in the UK or EU.
Distance Selling Thresholds: If you are based outside the EU, but you sell goods to customers in the EU. You need to register for VAT in an EU country within 90 days. This is Amazon requirement.
Import VAT: If you are importing goods into the UK or EU, you may need to pay import VAT and customs duties. The VAT rate UK depends on the type of goods you are importing.
Simplified and accurate, EU-wide VAT processing for Amazon sellers
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