Amazon VAT: What are the obligations for European companies to sell on Amazon?
Since the reform of the OSS / IOSS Single Window in July 2021, the VAT rules for distance selling have profoundly changed. Standardized sales thresholds, online VAT declaration, removal of the VAT exemption for imported goods under 22€, many changes that require European businesses to comply with intra-community VAT.
- This article is intended for Amazon Sellers.
- Posted :
- Reading Time : 5 min.
Amazon VAT: for your local sales
For your local sales, there is no change. Your inventory is hosted in your country of establishment and sold in B2C in that same country:
- Local VAT rules
- Local VAT rates
- National VAT declaration and payment
VAT rules for your sales in the EU with stock in your country of establishment
Your company sells its goods in B2C via Amazon in one or more EU countries from a stock established in your company’s country of residence:
- Register on the OSS One-Stop Shop in your country of establishment with your intra-community VAT number
- Apply the VAT of the country of delivery
- Declare and pay the VAT every quarter on the OSS Single Window
- File an Intrastat declaration in your country if you exceed the e-commerce sales threshold | See the intrastat thresholds of EU countries
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VAT rules for your sales in the EU with one or more stocks in the EU
If your company sells in B2C via Amazon and has subscribed to the NAP-European :
- Register for VAT in the countries hosting your inventory
- Register on the OSS One-Stop Shop in your country of establishment with your intra-community VAT number
- Apply the VAT of the country of delivery
- Declare stock transfers
- Declare domestic sales on the local VAT return
- Declare intra-community distance sales on the OSS one-stop shop
- Pay VAT on intra-community remote sales through the OSS single window
- Pay VAT on domestic sales via the local declaration
- File an Intrastat declaration in your country if you exceed the e-commerce sales threshold | See intrastat thresholds of EU countries
Example for a German company that has subscribed to Amazon’s NAP-Europe and sends its inventory to Spain and the Czech Republic:
Step 1: Sending the goods to Amazon’s inventory: the company must register for VAT in Spain and the Czech Republic to store the goods. It will therefore have an intra-community VAT number in DE, ES and CZ and will have reporting obligations in all three countries.
Step 2 : She registers at the OSS single window with her DE VAT number on the German tax site
Step 3: She declares the intracom sales via the OSS and the domestic sales in each country where she is registered for VAT.
Amazon VAT rules for your EU sales with imported products
Your company makes e-commerce sales via Amazon of goods located outside the EU at the time of the order. You need to distinguish between imported packages valued at less than €150, and those valued at more than €150:
Imported parcels of -150€:
Amazon is responsible for VAT in this case and must register for the IOSS import scheme:
- Your company issues an invoice including VAT from your customer's country
- The -150€ package is imported into the EU with a copy of the invoice and Amazon's IOSS number: VAT is not claimed on import
- Amazon declares and pays the VAT via the IOSS Single Window
Imported parcels of +150€ :
Your company remains responsible for VAT and performs a classic import:
- Import into the EU with payment of customs duties and VAT according to the rules of the country
- You invoice your customer with the VAT of his country
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