VAT KNOWLEDGE CENTRE
All you need to know about VAT in one place
Welcome to our dedicated VAT education page! This page aims to build your understanding of the European VAT landscape as an Amazon Selling partner. You should be able to find information related to existing regulations and how you might trigger VAT obligations. We will also highlight what steps you need to take to ensure VAT compliance and the solutions that are available for you to utilize.
£25 (excl. VAT) per month + selling fees
Learn more about third-party tax providers who can assist you with your VAT needs:
Whether you’re launching a new business in Europe, or expanding your existing business into the European region, you may need support to comply with various VAT obligations.
Click here for more information on VAT compliance support
Whether you’re launching a new business in Europe, or expanding your existing business into the European region, you may need support to comply with various VAT obligations.
Click here for more information on VAT compliance support
Basic Concepts
What is Value Added Tax (VAT)?
VAT stands for Value Added Tax. It’s a tax that VAT-registered traders in Europe add to the price of the goods they sell, and pass on to the national tax authorities when they file their tax returns.
If you sell goods in any European country, it’s likely you may be required to register for Value Added Tax (VAT) in each country you sell in.
Remember, it is the responsibility of each Amazon selling partner to ensure they are VAT-compliant and you should seek professional advice if you are unsure of your obligations.
If you sell goods in any European country, it’s likely you may be required to register for Value Added Tax (VAT) in each country you sell in.
Remember, it is the responsibility of each Amazon selling partner to ensure they are VAT-compliant and you should seek professional advice if you are unsure of your obligations.
How does VAT work?
The basic principle is that businesses can recover the VAT they have paid on their purchases and then charge VAT on their sales. While you pay the VAT to the tax authorities, the end consumer pays the VAT as part of the purchase price. You will only be able to recover the VAT you have paid on your purchases and charge VAT on your sales if you are VAT registered.
Selling partners with a VAT number in the respective European country should show the VAT charged, including the VAT rate and number to customers on invoices, where a VAT invoice is required. In this way, the customer knows how much VAT is due on the purchased product.
Selling partners with a VAT number in the respective European country should show the VAT charged, including the VAT rate and number to customers on invoices, where a VAT invoice is required. In this way, the customer knows how much VAT is due on the purchased product.
What are the European VAT rates?
Actual VAT rates applied vary between European countries (the standard rate must be at least 15%) and between certain types of products. In addition, certain European countries have retained other rates for specific products.
The VAT guidelines offer national governments freedom to set the number and level of VAT rate they choose, subject only to two basic rules:
The VAT guidelines offer national governments freedom to set the number and level of VAT rate they choose, subject only to two basic rules:
- The standard rate for all goods and services.
- European country can opt to apply one or two reduced rates but only to goods or services listed in the VAT Directive.
Standard VAT rate is the rate that European countries apply to all non-exempt goods and services. It cannot be less than 15%, but there is no maximum.
VAT rates across EU member states
Member State
Code
Standard rate
Germany
DE
19%
France
FR
20%
Italy
IT
22%
Spain
ES
21%
Poland
PL
23%
Czech Republic
CZ
21%
Netherlands
NL
21%
What is a VAT return?
Every VAT-registered person is obliged to file a VAT return for each relevant period. VAT filing is the process of preparing and submitting reports to tax authorities to provide them with information on your transactions in the relevant period and to provide them with the amount of VAT which you are due to pay (or receive in the case of an overpayment of VAT).
A VAT return includes information on the VAT collected from customers, VAT paid to suppliers, along with cross-border sales, cross-border acquisitions, imports and exports.
A VAT return includes information on the VAT collected from customers, VAT paid to suppliers, along with cross-border sales, cross-border acquisitions, imports and exports.
FAQ:
How often should I file returns?
This depends on which European country requirements and Selling partner's obligations in that country. Many European countries require returns to be submitted every month or three months. Please consult a tax advisor to guide you further.
What is Customs Duty?
Customs duty may be payable on the import of goods into a European country coming from outside of the Europe. The customs duty rate is determined based on the HS commodity code applicable to the product being imported, and may be influenced by the origin of the goods. The customs duties and import VAT is calculated as a percentage of the customs value of the goods. Please consult your tax advisor for further guidance.
FAQ:
What does Customs Duty mean for me as a Selling partner?
Goods imported from outside of the Europe, may have to go through customs checks. Customs paperwork/documentation (e.g. customs declaration) must be prepared and accompany imported goods. This documentation is the main source of information used by customs authorities to validate the custom duty/taxes payable. However, in some instances customs authorities may check the goods to determine how much customs duties and/or tax needs to be paid and may request further information, including to establish compliance of the goods with European regulations.
What is Import VAT?
Import VAT may also be payable on the same importation of goods from outside Europe into a European country, in addition to any customs duty which is due. This is calculated on the customs value of the goods plus any applicable duties. Import VAT is normally recoverable via your VAT return provided you are registered for VAT in the country where the goods are declared to the customs authorities and are the ‘owner’ of the goods.
What is invoicing?
In many European countries, customers expect a VAT invoice. VAT laws in the country where you ship your goods from and where the customer is located may require you to provide a VAT invoice. The process for the issuance of a VAT invoice varies based on the country. For further information, click here.
FAQ:
What does invoicing mean for me as a Selling partner?
All European VAT registered Selling partners are required to provide Amazon Business customers with a valid VAT invoice for each order.
Tax representation
If you are a non-EU based Selling partner, you will be required to appoint a Tax Representation in some EU countries in order to register for VAT.
Tax representation is the process where an individual or business acts on behalf of a non-resident company for VAT purposes in the EU. Tax representatives in many EU countries are jointly and severally liable for the VAT debts of a non-EU based Selling partner.
As an online Selling partner, there may be a need for bank guarantees and extra fees to secure the use of a tax representative. These additional requirements are dependent on the country-specific requirements and the provider of tax representation services.
Tax representation is the process where an individual or business acts on behalf of a non-resident company for VAT purposes in the EU. Tax representatives in many EU countries are jointly and severally liable for the VAT debts of a non-EU based Selling partner.
As an online Selling partner, there may be a need for bank guarantees and extra fees to secure the use of a tax representative. These additional requirements are dependent on the country-specific requirements and the provider of tax representation services.
Visit our dedicated VAT Education pages on Seller Central to learn more.
VAT obligations
Do I need a VAT number?
Depending on the nature of your business, you will be required to register for VAT numbers in a European country as per the regulations. This depends on multiple factors, some of which are: place of business establishment, fulfilment model, and your annual sales.
Find out if you need to register for VAT?
Tell us about your business so we can help you determine whether you need to register for VAT:
Which country do you plan to sell in? (select one)
Do you have an Amazon Selling partner Account? (select one)
New to Selling on Amazon
You indicated you do not already have a selling partner account on Amazon. Signing up for the monthly no-commitment plan allows selling partners to reach tens of millions of shoppers on Amazon.co.uk and online in Europe. The monthly selling plan includes incredible benefits to help those just starting out and those looking to grow their business.
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In the United Kingdom
You need to register for VAT in the UK if:
- You store goods in the UK; and
- You sell them to consumers based in the UK; and
- Your sales exceed the UK domestic VAT threshold of £85,000.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in the UK if:
- You store your goods in the UK or
- You sell to UK-based consumers (non-business); and
- Your sales exceed the UK distance selling VAT threshold of £70,000.
Outside the EU
You need to register for VAT in the UK if:
- You sell goods that you store in the UK to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in the UK
Option 1: File on your own
Once you have established you need to register for VAT in the UK, submit an application form to the UK tax authorities. You can do this online on the HMRC (the UK tax authority) website
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell HMRC how much VAT you have collected and start claiming any VAT credit you may have accrued.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
Thanks for Selling on Amazon
You indicated you already have a selling partner account on Amazon.
Helpful quick links:
- Where can I add a VAT number in Seller Central? (Seller Central login required)
- Where can I add a VAT number in Seller Central? (Seller Central login required)
- VAT Calculation Service
- Want Amazon to handle VAT? Learn more about VAT Services
- EU VAT frequently asked questions
- Selling partner Forum VAT related topics
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In the United Kingdom
You need to register for VAT in the UK if:
- You store goods in the UK; and
- You sell them to consumers based in the UK; and
- Your sales exceed the UK domestic VAT threshold of £85,000.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in the UK if:
- You store your goods in the UK or
- You sell to UK-based consumers (non-business); and
- Your sales exceed the UK distance selling VAT threshold of £70,000.
Outside the EU
You need to register for VAT in the UK if:
- You sell goods that you store in the UK to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in the UK
Option 1: File on your own
Once you have established you need to register for VAT in the UK, submit an application form to the UK tax authorities. You can do this online on the HMRC (the UK tax authority) website
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell HMRC how much VAT you have collected and start claiming any VAT credit you may have accrued.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
New to Selling on Amazon
You indicated you do not already have a selling partner account on Amazon. Signing up for the monthly no-commitment plan allows selling partners to reach tens of millions of shoppers on Amazon.co.uk and online in Europe. The monthly selling plan includes incredible benefits to help those just starting out and those looking to grow their business.
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In Germany
You need to register for VAT in Germany if:
- You store goods in the Germany; and
- You sell them to consumers based in Germany; and
- Your sales exceed the German domestic VAT threshold of €17,500.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in Germany if:
- You store your goods in Germany or
- You sell to German-based consumers (non-business); and
- Your sales exceed Germany distance selling VAT threshold of €100,000.
Outside the EU
You need to register for VAT in Germany if:
- You sell goods that you store in Germany to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in Germany
Option 1: File on your own
Once you have established you need to register for VAT in Germany you are required to submit an application form to German tax authorities. Further information can be found at the BZSt, the German Federal Central Tax Office
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell BZSt how much VAT you have collected and start claiming any VAT credit you may have accrued.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
Thanks for Selling on Amazon
You indicated you already have a selling partner account on Amazon.
Helpful quick links (Seller Central login required):
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In Germany
You need to register for VAT in Germany if:
- You store goods in the Germany; and
- You sell them to consumers based in Germany; and
- Your sales exceed the German domestic VAT threshold of €17,500.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in Germany if:
- You store your goods in Germany or
- You sell to German-based consumers (non-business); and
- Your sales exceed Germany distance selling VAT threshold of €100,000.
Outside the EU
You need to register for VAT in Germany if:
- You sell goods that you store in Germany to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in Germany
Option 1: File on your own
Once you have established you need to register for VAT in Germany you are required to submit an application form to German tax authorities. Further information can be found at the BZSt, the German Federal Central Tax Office
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell BZSt how much VAT you have collected and start claiming any VAT credit you may have accrued.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
New to Selling on Amazon
You indicated you do not already have a selling partner account on Amazon. Signing up for the monthly no-commitment plan allows selling partners to reach tens of millions of shoppers on Amazon.co.uk and online in Europe. The monthly selling plan includes incredible benefits to help those just starting out and those looking to grow their business.
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In France
You need to register for VAT in France if:
- You store goods in France; and
- You sell them to consumers based in France; and
- Your sales exceed the French domestic VAT threshold of €82,200.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in France if:
- You store your goods in France or
- You sell to French-based consumers (non-business); and
- Your sales exceed French distance selling VAT threshold of €35,000.
Outside the EU
You need to register for VAT in France if:
- You sell goods that you store in France to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in France
Option 1: File on your own
Once you have established you need to register for VAT in France you are required to submit an application form to French tax authorities. Further information can be found at the French Tax Administration official web page
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell the French Tax Administration how much VAT you have collected and start claiming any accrued VAT credit.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
Thanks for Selling on Amazon
You indicated you already have a selling er account on Amazon. Please click here to login to your selling partner account.
Helpful quick links:
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In France
You need to register for VAT in France if:
- You store goods in France; and
- You sell them to consumers based in France; and
- Your sales exceed the French domestic VAT threshold of €82,200.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in France if:
- You store your goods in France or
- You sell to French-based consumers (non-business); and
- Your sales exceed French distance selling VAT threshold of €35,000.
Outside the EU
You need to register for VAT in France if:
- You sell goods that you store in France to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in France
Option 1: File on your own
Once you have established you need to register for VAT in France you are required to submit an application form to French tax authorities. Further information can be found at the French Tax Administration official web page
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell the French Tax Administration how much VAT you have collected and start claiming any accrued VAT credit.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
New to Selling on Amazon
You indicated you do not already have a selling partner account on Amazon. Signing up for the monthly no-commitment plan allows selling partners to reach tens of millions of shoppers on Amazon.co.uk and online in Europe. The monthly selling plan includes incredible benefits to help those just starting out and those looking to grow their business.
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In Italy
You need to register for VAT in Italy if:
- You store goods in the Italy; and
- You sell them to consumers based in Italy
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in Italy if:
- You store your goods in Italy or
- You sell to Italian-based consumers (non-business); and
- Your sales exceed Italian distance selling VAT threshold of €35,000.
Outside the EU
You need to register for VAT in Italy if:
- You sell goods that you store in Italy to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in Italy
Option 1: File on your own
Once you have established you need to register for VAT in Italy you are required to submit an application form to Italian tax authorities. Further information can be found at the Italian Tax Administration official web page
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell Italian tax authorities how much VAT you have collected and start claiming any VAT credit you may have accrued.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
Thanks for Selling on Amazon
You indicated you already have a selling partner account on Amazon.
Helpful quick links:
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In Italy
You need to register for VAT in Italy if:
- You store goods in the Italy; and
- You sell them to consumers based in Italy;
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in Italy if:
- You store your goods in Italy or
- You sell to Italian-based consumers (non-business); and
- Your sales exceed Italian distance selling VAT threshold of €35,000.
Outside the EU
You need to register for VAT in Italy if:
- You sell goods that you store in Italy to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in Italy
Option 1: File on your own
Once you have established you need to register for VAT in Italy you are required to submit an application form to Italian tax authorities. Further information can be found at the Italian Tax Administration official web page
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell Italian tax authorities how much VAT you have collected and start claiming any VAT credit you may have accrued.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
New to Selling on Amazon
You indicated you do not already have a selling partner account on Amazon. Signing up for the monthly no-commitment plan allows selling partners to reach tens of millions of shoppers on Amazon.co.uk and online in Europe. The monthly selling plan includes incredible benefits to help those just starting out and those looking to grow their business.
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In Spain
You need to register for VAT in Spain if:
- You store goods in Spain; and
- You sell them to consumers based in Spain
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in Spain if:
- You store your goods in Spain or
- You sell to Spanish-based consumers (non-business); and
- Your sales exceed Spain distance selling VAT threshold of €35,000.
Outside the EU
You need to register for VAT in Spain if:
- You sell goods that you store in Spain to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in Spain
Option 1: File on your own
Once you have established you need to register for VAT in Spain you are required to submit an application form to Italian tax authorities. Further information can be found at the Spanish Tax Administration official web page
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell Spanish tax authorities how much VAT you have collected and start claiming any VAT credit you may have accrued.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
Thanks for Selling on Amazon
You indicated you already have a selling partner account on Amazon.
Helpful quick links:
How do I know if I need to register for VAT in the EU?
The below information will help with understanding your potential VAT obligations, whether you need to register for VAT in an EU member state depends on the way you conduct your business. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales (read more about the ‘VAT thresholds’ in EU countries).
Where is your business established?
In Spain
You need to register for VAT in Spain if:
- You store goods in Spain; and
- You sell them to consumers based in Spain
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
In a different EU Country
You need to register for VAT in Spain if:
- You store your goods in Spain or
- You sell to Spanish-based consumers (non-business); and
- Your sales exceed Spain distance selling VAT threshold of €35,000.
Outside the EU
You need to register for VAT in Spain if:
- You sell goods that you store in Spain to customers based in the EU.
You may also need to register for VAT separately in other EU countries if:
- You sell goods to consumers in other EU countries.
How to register for VAT in Spain
Option 1: File on your own
Once you have established you need to register for VAT in Spain you are required to submit an application form to Italian tax authorities. Further information can be found at the Spanish Tax Administration official web page
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
At the end of the VAT registration process you will be provided with a VAT number. You can use this to:
- File VAT tax returns - Tell Spanish tax authorities how much VAT you have collected and start claiming any VAT credit you may have accrued.
- Issue VAT invoices - where you show the VAT collected from customers
- Claim money back on your business expenses - (as well as import VAT paid at the time goods are imported into the EU). See how to claim VAT back on business expenses for more information
Option 2: Let Amazon help
VAT Services on Amazon
VAT Services on Amazon is a convenient and cost-effective solution for handling your VAT registration and filing requirements directly from Seller Central. Learn more about VAT Services on Amazon
If you have questions about your VAT compliance and obligations, it’s always best to seek professional advice.
Note: Goods which are imported into the EU are subject to Customs duty and Import VAT.
VAT regulations across Europe
What are the various VAT regulations across Europe?
It is important for you to meet your VAT and tax obligations in all countries where your business operates. Please consult your tax adviser for guidance on how to meet your VAT obligations. While there are multiple factors involved in defining compliance requirements across the EU, we have summarized them for the Amazon marketplaces from a Selling partner’s perspective.
Hear what selling partners are saying about VAT
When we first looked at the Pan-European FBA option we realised we’d need to register for VAT in each of the countries that we were going to be holding stock in. The VAT registration wasn’t a particularly onerous task for us, though – it’s just a matter of a bit of extra paperwork once a quarter.Zamir Cajee, CEOiQualTech
More resources on VAT
EU tax authorities
FAQs
Get answers to the frequently asked questions about Value Added Tax (VAT).
What are the consequences of non-compliance with Value Added Tax (VAT) obligations in the EU?
EU countries operate a harmonised VAT regime. Failure to comply with VAT registration and ongoing compliance requirements within the EU has serious consequences:
- Typically you have to pay the VAT which you should have paid to the appropriate (EU) tax authorities, plus interest on the VAT from the date it should have been paid. This is usually from the date you should have obtained a VAT registration number, accounted for VAT on your sales and remitted VAT to the tax authorities (despite not charging VAT on your sales during this time).
- If the tax authorities become aware that you have failed to comply with your VAT obligations you may have to pay a financial penalty. The amount of the penalty will typically depend on the amount of VAT due and the length of time you failed to meet your registration obligations. Late registration penalties are generally a percentage based on the VAT amount that should have been remitted to the tax authorities. The ways in which penalties are calculated differ from country to country. If you intentionally or wilfully fail to comply with your VAT obligations, you could also be subject to criminal prosecution by governmental authorities.
In the event that Amazon is notified that you have failed to comply with your VAT compliance obligations, you may lose your selling privileges on Amazon websites. You will be prevented from re-listing until such time you have demonstrated VAT compliance.
On the VAT Resources website we have provided you with some useful information which may assist you in considering your obligations with regards VAT compliance. However this information is not intended to be a comprehensive guide nor tax advice and if you are unsure of your obligations we recommend that you seek advice from either the applicable tax authority or an independent tax advisor.
- Typically you have to pay the VAT which you should have paid to the appropriate (EU) tax authorities, plus interest on the VAT from the date it should have been paid. This is usually from the date you should have obtained a VAT registration number, accounted for VAT on your sales and remitted VAT to the tax authorities (despite not charging VAT on your sales during this time).
- If the tax authorities become aware that you have failed to comply with your VAT obligations you may have to pay a financial penalty. The amount of the penalty will typically depend on the amount of VAT due and the length of time you failed to meet your registration obligations. Late registration penalties are generally a percentage based on the VAT amount that should have been remitted to the tax authorities. The ways in which penalties are calculated differ from country to country. If you intentionally or wilfully fail to comply with your VAT obligations, you could also be subject to criminal prosecution by governmental authorities.
In the event that Amazon is notified that you have failed to comply with your VAT compliance obligations, you may lose your selling privileges on Amazon websites. You will be prevented from re-listing until such time you have demonstrated VAT compliance.
On the VAT Resources website we have provided you with some useful information which may assist you in considering your obligations with regards VAT compliance. However this information is not intended to be a comprehensive guide nor tax advice and if you are unsure of your obligations we recommend that you seek advice from either the applicable tax authority or an independent tax advisor.
How is VAT charged and reimbursed?
In order to charge VAT you must first be registered for VAT and obtain a VAT number. Once you are VAT registered you are bound by the VAT rules applicable to the EU country in which you are registered but it normally means that you must charge VAT (where applicable) on your sales and mention this VAT on a VAT compliant invoice (please consult your tax advisor for specific advice regarding invoicing requirements).
The amount of VAT due to a local tax authority, i.e. charged to your customers, can be offset by the VAT which is incurred on your business purchases/costs (please consult a tax advisor regarding on which costs VAT can be recovered).
Please note that you should check VAT reporting and invoicing requirements in each country in which you register. Although these requirements are similar, there can be notable differences.
The amount of VAT due to a local tax authority, i.e. charged to your customers, can be offset by the VAT which is incurred on your business purchases/costs (please consult a tax advisor regarding on which costs VAT can be recovered).
Please note that you should check VAT reporting and invoicing requirements in each country in which you register. Although these requirements are similar, there can be notable differences.
How to register for VAT in multiple countries?
If you store, move or sell goods in multiple EU countries you may be required to register for VAT in multiple countries. If this is the case, you could be required to submit VAT returns in more than one country.
The requirements to register for VAT in multiple countries vary and we recommend that you consult a tax advisor, particularly if you store goods in more than one EU country or make distance sales within the EU.
The requirements to register for VAT in multiple countries vary and we recommend that you consult a tax advisor, particularly if you store goods in more than one EU country or make distance sales within the EU.
I sell products into an EU country from outside EU (I do not have a business establishment in EU and I do not store goods in EU). Do I need to register for VAT?
We currently only support feeds for text customization for one area and up to 5 lines. Image customization and product configuration are still a manual one-by-one upload.
I sell products from another country into an EU country. Where do I need to register for VAT?
When selling goods from one EU country into another EU country, you should be aware that the VAT requirements and rates could be different from country to country. If you store your goods in an EU country, you may be required to VAT register in that EU Country. Additionally, if you transfer your own goods from one EU Country to another, or if Amazon (FBA) transfers your goods from a fulfilment centre into another country where you have designated your goods can be stored, the transfer may also be treated as a transaction, which needs to be reported on a VAT return. You are responsible for meeting any VAT obligations that apply, including VAT obligations in the Amazon marketplace website locations, the countries from which you are delivering your goods, the countries to which you are delivering or shipping your goods, or any other countries (e.g. country of importation in case you import goods from non EU).
How soon after crossing the VAT threshold do I need to upload a VAT number in Seller Central?
You should monitor your account and apply for a VAT number with the relevant tax authority or with VAT Services on Amazon as soon as you expect to exceed the threshold or breach another VAT registration requirement. Given that time is needed to complete the process, we recommend you apply for your VAT number sufficiently in advance of exceeding the threshold.
What is the difference between an EU VAT registration number and a local VAT number?
EU VAT registration number: VAT registration number that is validated and listed in VIES. The EU VAT registration number is preceded by a country prefix (for example, IT for Italy, ES for Spain) from the country that granted the number.
Local VAT registration number: A local VAT registration number does not have a country prefix and is in principle only meant to be used for domestic transactions within the country that granted the number (for example, purchases from a domestic supplier).
Local VAT registration number: A local VAT registration number does not have a country prefix and is in principle only meant to be used for domestic transactions within the country that granted the number (for example, purchases from a domestic supplier).
What is a tax identification number?
A tax identification number is the officially issued tax identification number issued by the country where the Selling Partner’s business is legally established. For example, if their business is legally established in France, then their local tax identification number is their SIRET number. Similarly, if their business is legally established in China then their local tax identification number is the Uniform Social Credit Code or, if operating as an individual, the ID number from their Chinese ID card.
The business name registered for my VAT number does not match my Seller Central legal name because of a clerical mistake. What should I do?
We cannot accept VAT numbers that don’t match your legal name. You must contact the relevant tax authority to either update your business name for the VAT number registered, or request that they provide a new VAT number belonging to the legal name in your selling partner account.
You may also choose to change your business name in Seller Central, but this may (re)trigger the account verification process, and you will have to provide relevant proof to clear this verification.
You may also choose to change your business name in Seller Central, but this may (re)trigger the account verification process, and you will have to provide relevant proof to clear this verification.
Note: Information on this page does not constitute tax, legal, or other professional advice and must not be used as such. For specific advice on your VAT obligations, we recommend that you consult a tax adviser. Moreover, some legislative changes will occur in January 2021, which might affect the information provided on this page.
On this site, we use cookies and similar tools (collectively, "cookies") to provide and improve services to you and to show ads. To learn more about how Amazon uses cookies, please read the Amazon Cookies Notice.
