Key takeaways
- Simplify EU VAT compliance: Amazon VAT Services helps sellers handle VAT registration, calculation, and filing in seven European countries — all through one streamlined platform.
- Save time and reduce risk: Automating VAT processes ensures accurate filings, timely payments, and fewer compliance errors or penalties.
- Partner with Taxually: Choose Taxually as your Amazon VAT Services provider for expert support, tailored solutions, and complete peace of mind.
Taking care of your business’s VAT obligations can be a real headache, which is why employing VAT compliance specialists such as Taxually is a good move. We don’t just work directly with clients, though, we also offer VAT Services through our partnership with Amazon. If you’re an Amazon seller considering Amazon VAT Services, you can find out more here.
What is VAT Services on Amazon?
Amazon VAT Services is a program that helps sellers on Amazon to comply with VAT requirements in Europe. Currently, VAT Services on Amazon is available in the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic.
As an online marketplace, Amazon provides a platform for third-party sellers to reach customers in Europe. However, each country in the EU and UK has its own VAT laws and regulations, which can be complex and time-consuming for sellers to navigate.
The VAT Services on Amazon program assists sellers by providing VAT registration, calculation, and filing services for their sales in the seven European countries mentioned above. This allows sellers to focus on their business operations while ensuring that they comply with EU and UK VAT requirements.
Those who sign up to Amazon VAT Services will also be provided with guidance on VAT regulations and offered support for tax audits and disputes. By using this program, sellers can reduce the risk of non-compliance and the associated VAT penalties and fines.
Amazon VAT Services should not be confused with Amazon VAT Calculation Services, which works by automatically calculating the VAT on each sale made through Amazon. A VAT invoice is generated which sellers can then forward to their customers.
The advantages of VAT Services on Amazon
Amazon VAT Services offers several advantages to sellers who use its platform to sell their products. These include:
- Compliance with European VAT regulations: VAT Services on Amazon helps sellers comply with the complex and frequently changing VAT regulations in Europe. This can help sellers avoid costly VAT penalties and legal issues.
- Simplified VAT registration: Sellers can register for VAT in multiple EU countries, as well as in the UK, quickly and easily, without the need for expensive legal advice or tax consultants.
- Accurate VAT calculations: With Amazon VAT Services, sellers can be confident that any VAT calculation will be completed accurately, removing the risk of errors that could result in incorrect VAT payments and fines.
- Timely VAT payments: VAT from seller payouts is automatically deducted and remitted to the appropriate tax authorities within the stated deadlines, ensuring timely compliance with VAT regulations.
- Reduced administrative burden: By handling VAT compliance on behalf of sellers, VAT Services on Amazon reduces the administrative burden of VAT compliance, allowing sellers to focus on growing their business.
The disadvantages of Amazon VAT Services
If you’re an Amazon seller, the VAT Services offered by them can be a great way to streamline your VAT responsibilities. However, there are a few downsides:
- Unable to change VAT services provider: At the moment, when you choose your third-party provider from the Amazon selection, you won’t be able to change it to another provider once the registration process has begun.
- Limited number of countries. Currently, Amazon’s VAT Services is only available for the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic. However, further EU countries are expected to be added in the coming years.
- Not suitable for all: While an excellent solution for many businesses, other companies may find that, due to the complexities of their business model, Amazon VAT Services is not suited to them. In this case, a tailored option is preferable.
Conclusion
Amazon VAT Services is a valuable tool for sellers on Amazon who want to expand their business in Europe while staying compliant with VAT regulations. You can easily sign up via your Amazon seller account and select Taxually as your VAT Services provider.
To find bespoke solutions for your business, optimize your VAT costs, and reach millions of new potential customers, email us at mycompliance@taxually.com and we’ll arrange a free call with one of our VAT experts.
Frequently asked questions
What is VAT Services on Amazon?
VAT Services on Amazon is a program that helps sellers meet their VAT compliance requirements when selling in Europe. It covers VAT registration, calculation, and filing for the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic, making it easier for Amazon sellers to stay compliant.
How does Amazon VAT Services work?
Once registered, Amazon VAT Services manages your VAT processes across supported countries. It calculates the correct VAT, files returns on time, and remits payments to local tax authorities, ensuring compliance without manual effort.
Which countries are covered by Amazon VAT Services?
Currently, VAT Services on Amazon is available in seven countries: the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic. More EU countries are expected to be added in the future as Amazon expands the program.
Can I choose my VAT provider on Amazon?
Yes. When signing up for VAT Services on Amazon, sellers can choose from Amazon’s list of approved VAT partners, including Taxually. However, once the registration process begins, it’s not possible to change providers.
What are the benefits of using VAT Services on Amazon?
The main benefits include simplified VAT registration, accurate VAT calculation, timely payments, and full compliance with EU and UK VAT regulations. It also reduces admin work so you can focus on growing your business.
Are there any drawbacks to Amazon VAT Services?
While convenient, the program currently supports a limited number of countries and doesn’t suit every business model. Some sellers with complex operations may benefit more from tailored VAT compliance solutions like those offered by Taxually.
