A US-based ecommerce business selling through Amazon and Shopify was already working with SimplyVAT for its Canadian GST compliance before appointing the team in November 2025 to take over its German VAT registration and returns.
Soon after SimplyVAT took over from the company’s previous VAT agent, the German Tax Authorities opened an audit covering the 2023 tax period. This immediately created significant operational hurdles for the business, as the German Tax Authority deactivated its VAT registration. In turn, Amazon restricted its seller account, preventing the company from trading in Germany - Europe’s largest ecommerce market - during a peak sales period.
The situation got complicated very fast. The 2023 VAT returns had been prepared and submitted by the previous agent, leaving both SimplyVAT and the ecommerce seller with limited visibility over the figures originally reported.
SimplyVAT’s Audit Team took immediate ownership of the case, working closely with the business to rebuild its German VAT position from the ground up. The team carried out a detailed review of its historical transactions, gathered supporting documentation for the audit period, reconciled the data previously submitted, and prepared the necessary corrections for the entire 2023 tax year.
The SimplyVAT team managed all interactions with the German Tax Authorities, using their knowledge of the language, the case and German VAT law to ensure that every regulatory query was addressed quickly and precisely. Through ongoing support and transparent communication, SimplyVAT provided the company with the confidence and technical guidance needed to navigate the audit process.
In April 2026, the German Tax Authorities accepted the explanations, supporting evidence, and corrections submitted by SimplyVAT. As a result, the company’s German VAT registration was reinstated and the restrictions on its Amazon seller account were lifted. This allowed the business to resume full operations in the German market - one of its primary EU trading territories.
The resolution of this compliance challenge enabled the ecommerce seller to protect revenue, re-establish customer relationships in Germany, and continue its international growth trajectory with renewed confidence.
This case demonstrates the value of specialist VAT support when ecommerce businesses face historical compliance issues, Tax Authority investigations, or marketplace restrictions. VAT investigations can have a direct impact on trading operations, especially for ecommerce businesses that rely on marketplaces such as Amazon. With an expert in your corner, you can resolve complex compliance issues efficiently, protect your commercial activity, and return your focus to trading with confidence.
