Reduced 2026 fees = bigger margins. See what you saveReduced 2026 fees = bigger margins. See what you saveVAT KNOWLEDGE CENTRE
All you need to know about VAT in one place
Welcome to our dedicated VAT education page! This page aims to easily build your understanding of the EU VAT landscape as an Amazon Seller. 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.
Basic Concepts
What is Value Added Tax (VAT)?
VAT stands for Value Added Tax. It’s a tax that VAT-registered traders in the EU 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 EU country, it’s likely you may be required to register for Value Added Tax (VAT) in each country you sell in.
Remember: it’s the responsibility of each Amazon seller 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 EU country, it’s likely you may be required to register for Value Added Tax (VAT) in each country you sell in.
Remember: it’s the responsibility of each Amazon seller 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.
Sellers with a VAT number in the respective EU 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.
Sellers with a VAT number in the respective EU 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 EU VAT rates?
Actual VAT rates applied vary between EU countries (the standard rate must be at least 15%) and between certain types of products. In addition, certain EU countries have retained other rates for specific products*.
The VAT guidelines offer national EU governments freedom to set the number and level of VAT rate they choose, subject only to two basic rules:
The VAT guidelines offer national EU 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.
- An EU 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 EU 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 states
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.
Frequently
asked
questions:
How often should I file returns?
This depends on which EU country requirements and Seller's obligations in that country. Many EU 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 an EU country coming from outside of the EU. 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.
Frequently
asked
questions:
What does Customs Duty mean for me as a Seller?
Goods imported from outside of the EU, 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 EU regulations.
What is Import VAT?
Import VAT may also be payable on the same goods imported from outside Europe into an EU country, in addition to any customs duties due. This is calculated on the basis of the customs value of the goods plus any applicable customs 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 EU 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. Learn more about invoicing.
Tax representation
If you are a non-EU based Seller, 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 Seller.
As an online Seller, 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 Seller.
As an online Seller, 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.
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.
VAT regulations across Europe
What are the various VAT regulations across Europe?
It is important to comply with your VAT obligations in all countries where your business operates. Consult your tax advisor for guidance on meeting your VAT obligations. While there are many factors involved in determining compliance requirements across the EU, we have summarized them for Amazon from a Sales Partner perspective.
More resources on VAT
EU tax authorities
Frequently Asked Questions
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. 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 this 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. 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 this 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 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 seller 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.
Do I have to register for VAT to sell on Amazon Poland?
Sellers on Amazon Poland may be required to register VAT depending on where they store the goods and where their customers are located.
The most important points are:
1. If you store goods in Poland, a VAT number is usually required
2. Selling to customers in other EU countries may incur additional tax obligations
3. VAT rules depend on the business model and the level of sales
4. EU mail order rules (OSS) may apply
It is important to carefully analyze your tax situation and make sure that you meet all the requirements before you start selling. If you're just starting out, a guide for new sellers that explains how to prepare for selling on Amazon might be helpful.
The most important points are:
1. If you store goods in Poland, a VAT number is usually required
2. Selling to customers in other EU countries may incur additional tax obligations
3. VAT rules depend on the business model and the level of sales
4. EU mail order rules (OSS) may apply
It is important to carefully analyze your tax situation and make sure that you meet all the requirements before you start selling. If you're just starting out, a guide for new sellers that explains how to prepare for selling on Amazon might be helpful.
Note: Information on this page does not constitute tax, legal, or other professional advice and must not be used as such.
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