Have you been thinking about starting to sell on Amazon internationally? We’ve answered all the most common questions sellers have about Amazon VAT and selling to Europe.
Yes. Under OSS, Amazon will handle the VAT on cross-border B2C sales of goods dispatched from one EU country. You'll still need to register for VAT in countries where you physically hold stock. These registrations cover the "taxable supply" you're creating by storing your goods there.
If you're registered for VAT in the EU or the UK, you should be able to reclaim the VAT charged on eligible Amazon fees. Amazon may also reverse charge the amount, depending on where you’re based.
Whether Amazon sellers need a fiscal representative to register for VAT depends on the country in which they're registering. In some countries, they're mandatory for all non-EU businesses. Others have countries that are exempt from the requirement or just don't require them at all.
Getting a fiscal representative in place can increase the total time it takes for you to get VAT registered. Make sure you're factoring that in when planning!
An EORI number is used to identify who is importing goods into the EU or UK. You get a VAT number assigned to you when you register for VAT. The VAT number identifies you as VAT registered, and tax authorities use it to track stuff like:
Both VAT numbers and EORI numbers are key tools in the fight against fraud.
The EU and the UK require you to have an EORI number if you're importing goods into their customs territories. So, Amazon sellers will need one if they're shipping goods to customers or warehouses in the EU or the UK.
Amazon sellers will also need a VAT number if they decide to store their goods in an EU country or the UK.
No, you have to register for VAT to reclaim it. Reclaims are made through your VAT return, and you can't file one unless you're registered. However, you can choose to register before you cross the threshold, if you want.
Important! The threshold only applies to businesses based in the UK. Register in the UK before your first sale if you're an international Amazon seller.
If you store your stock in a Pan-EU country, you will need to have a VAT registration there. Disabling countries won't remove the requirement to register and file returns for the period your goods were stored there. You can deregister for VAT if you can show that you no longer require a registration in a specific country. However, deregistering and registering can take a long time (and cost a lot of money); it's not a quick fix.
When you import goods into the EU to send to Amazon FBA, you have two options to deal with the import VAT:
Postponed VAT Accounting (PVA) is a system that lets you pay all the import VAT you owe in a country on your VAT return. Not all countries use PVA, and some have specific requirements you have to meet before you can use it. You can usually reclaim import VAT on your VAT returns if you hold onto the import documentation.
Learn more: The UK also lets you defer customs duties if you register to do so.
Yes! Marketplace VAT services may help with tax calculation on Amazon, but you remain responsible for registrations, filings, payments, and recordkeeping. Review what the service covers vs. what remains your obligation, especially for off-Amazon sales or inventory transfers.
Deemed supplier rules shift VAT collection to Amazon for certain low-value B2C imports. However, you might need to register for VAT or one of the EU's VAT schemes if you:
Import One Stop Shop (IOSS) covers B2C sales of goods imported into the EU in consignments with a value of EUR 150 or less. Amazon is considered the deemed supplier, so Amazon sellers don't need to register for IOSS if Amazon is their only sales channel. One Stop Shop (OSS), on the other hand, covers cross-border B2C sales within the EU, like when using Amazon FBA warehouses.
Keep VAT invoices, marketplace reports (transactions, fees), stock movement logs, import documents, and evidence of dispatch/arrival. Keeping your paperwork organised will make filing your returns easier. Plus, VAT reclaims and audits will be a breeze (should one come up).
When you use MCF to fulfil sales made off-Amazon, you're responsible for handling the VAT on that order. What you need to do will depend on:
You might need to register for VAT in a specific country, or for one of the EU's VAT schemes (IOSS, OSS, Non-Union OSS). We've got two easy ways for you to find out: Take our 30-second EU VAT Quiz, or book a call with one of our experts and tell them about your business.
