On July 1, 2021, the 27 countries of the European Union (EU) will implement new VAT rules on e-commerce sales which may affect your sales of goods to EU consumers through online stores including Amazon.
If you are established outside the EU – Amazon will collect VAT on the sales of goods delivered to B2C customers in the EU, ordered through any Amazon store, where:
- Goods are delivered from inventory stored outside the EU in a delivery with an intrinsic value of up to EUR 150 – This is referred to as the Import One Stop Shop; or
- Goods of any value are delivered from inventory stored in the EU where you, the Selling Partner, are not established in the EU.
If you are established inside the EU, following changes to the VAT treatment and reporting of intra-EU distance sales will be introduced:
- Distance selling thresholds will be replaced by a general tax at destination principle for all B2C e-commerce supplies of goods, i.e. VAT is due in the destination EU country
- Introduction of Union One-Stop shop (OSS) simplification to report VAT on B2C sales cross EU
Click here to know the legislation in detail and what actions you need to take for the upcoming changes.
If you want a complete view of the European VAT requirements, you can visit our main VAT Education page here.