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This article applies to selling in: United Kingdom

EU VAT Calculation Services Methodology

Last updated on 26 March, 2019.

Contents

  1. Purpose
  2. Overview
  3. Seller VAT Calculation Eligibility Criteria
  4. VAT Registration Numbers
  5. Determining the VAT Jurisdiction
  6. Assigning a Product Tax Code (PTC)
  7. Determining the VAT Exclusive/Inclusive Price
  8. Time of Sale for VAT Calculation
  9. Refunds
  10. VAT Rate Maintenance
  11. VAT Invoicing
  12. VAT Calculation Reporting
  13. Enrolment Activation
  14. Deactivation

1. Purpose

This document describes the methodology we apply to calculate VAT for Sellers using Amazon's VAT Calculation Services.

Important: Please read this VAT Calculation Methodology carefully before using Amazon’s VAT Calculation Services. Sellers are responsible for the accuracy of all calculation, invoicing, tax reporting and any other tax-related obligations. Sellers should consult a tax advisor if they need assistance in configuring tax settings for their business.

2. Overview

Amazon’s VAT Calculation Services will only perform VAT calculations for the 28 European Union (EU) member states, based on Seller-determined VAT calculation settings and any related Seller information set up during configuration. Our VAT Calculation Services do not perform VAT calculations in countries located outside of the EU.

To do your VAT calculations in an automated way, VAT Calculation Services make an assumption that you need to be aware of before you enrol in this programme. Both VAT Calculation Services and VAT Services on Amazon assume that you have opted for taxation in the country of arrival of your shipment as from the moment you have a verified VAT number for that country in your Seller Central account. This implies that a cross border EU sale of goods to consumers (distance sale) will always be taxed in the country of arrival of the shipment if a valid VAT number for that country is available.

The general VAT rules that apply on distance sales state that these sales are taxed in the EU country of dispatch of the shipment as long as you have not reached a certain threshold of distance sales performed to a specific EU country. However, it is possible to opt to tax your distance sales immediately in the arrival country. Therefore, where you have not exceeded distance selling threshold for one or more of your VAT registered countries please ensure, prior to enroling into VAT Calculation Services, you have duly informed the relevant tax authorities that you opt to immediately tax your distance sale in the EU country of arrival.

We use a third party calculation engine, Vertex Indirect Tax O Series, to support VAT Calculation Services.

Our services include support for the following VAT calculations and related functions:

  • VAT rates (including monthly updates);
  • VAT jurisdiction determination;
  • VAT exclusive price logic:
    • i.e. how VAT will be imputed from the seller’s inclusive display price;
  • Pre-populated product tax codes (PTCs) to support product-specific taxability across the EU member states:
    • Example: Books, clothing and food;
  • The ability to add/remove VAT registration numbers;
  • The ability to specify a single, default 'Ship From' location for Seller-fulfilled orders;
  • The ability to select a Seller-defined, default PTC;
  • The ability to set an ASIN/SKU level PTC;
  • The ability to specify shipping and gift wrap taxability;
  • The ability to handle B2B (business-to-business) and B2C (business-to-consumer) transactions;
  • VAT Calculation report;
  • Detailed Amazon VAT Transactions report including details on VAT rate, VAT amount and VAT exclusive price to facilitate VAT reporting; VAT invoice and credit note generation;
  • Amazon’s VAT Calculation Service utilises a third-party VAT calculation software. This software contains VAT calculation rules and logic, including logic related to rounding of the calculated amounts.
  • XML invoice and credit note creation on domestic B2B supplies in Italy
  • VAT Calculation Services supports non-resident domestic reverse charge calculations where the Customer is VAT registered and established in the country where the transaction takes place for VAT purposes and the Seller is only VAT registered in this country (but not established). Belgium, France, Italy, Netherlands and Spain have implemented a domestic reverse charge mechanism in such case.

    Example

    A French VAT registered Seller who does not have a physical presence in France lists an item at € 12.00 on Amazon.fr, ships the items from France and sells the item to a B2B Customer located in France (VAT rate = 0% - non-resident domestic reverse charge)

    VAT exclusive item price calculation: € 12.00/ (1 + 0.20) = € 10.00

    Final VAT inclusive item price calculation: € 10.00 * (1 + 0.00) = €10.00

Our services do not currently include support for the following calculations and related functions:

  • Any other reverse charge calculation other than that described above
    • Example: Product related reverse charge calculation on domestic supplies as mobile phones, above a threshold; any other non-resident domestic reverse charge etc.
  • The ability to specify multiple 'Ship From' locations for Seller-fulfilled orders;
  • Calculation on PrimeNow transactions;
  • Calculation on digital products and services, including a delivery of goods which were ancillary to a supply of services;
  • Calculation of customs duties, taxes and fees due on the importation of goods:
    • Example: Goods imported from China into the EU,
  • Calculation of any regulatory or environmental fees/taxes:
    • Example: Bottle deposits and Waste Electrical & Electronic Equipment (WEEE);
  • VAT calculation at the shipment level
    • That is, our service calculates VAT at the unit level and is then multiplied by the quantity of the product purchased, for example, if a buyer purchases 10 units of product X then VAT Calculation Services calculates VAT on one unit and then multiples the value by 10
  • Post-transaction VAT calculation, invoicing and reporting corrections;
  • Generation of VAT returns and other tax-related reports:
    • Example: Intrastat and European Sales Listings/Recapitulative Statements;
    • VAT obligations in respect of the EU cross border movement of Seller’s own goods such as goods transferred between Amazon fulfilment centers (FCs). The Seller will be responsible for ensuring the necessary compliance related obligations are fulfilled. The details of the EU cross border FC-to-FC transfers are available in the Amazon VAT Transactions Report in the Reports section of your Seller Central account.
  • Any special VAT schemes including the Cash Accounting scheme, Second Hand Margin Scheme or special publishers' VAT regime.

VAT Calculation Services rely on the correctness of the VAT registration numbers, PTC (Product Tax Code), and other VAT calculation settings supplied or configured by the Seller and, if applicable, the VAT registration number supplied by the Customer. Sellers are solely responsible for ensuring that their information and settings are at all times accurate and up-to-date. We do not represent or warrant that the VAT calculations or VAT invoices produced by our services will at all times be correct or that they will at all times be reported timely to the relevant Tax Authority (where the services include such reporting) and we are under no obligation to (but may in our discretion) verify or correct the information supplied by the Seller or the Customer. In particular, Amazon assumes no liability for VAT invoices which are incorrect as a result of inaccurate or incomplete information supplied by the Seller or the Customer.

3. Seller VAT Calculation Eligibility Criteria

Following are the requirements for a Seller to be eligible to enrol into VAT Calculation Services:

  • VAT Registration Number
    • Seller has a valid EU intra-community VAT registration number
    • Seller is VAT registered in the locations where they allow their inventory to be placed and request VAT calculations to be performed.
  • Legal Name – The Seller’s legal name in Seller Central must match the legal name associated with their respective VAT registration number held by the Tax Authorities.
  • Default ‘Ship From’ Location – Seller must provide a single default ship-from location that is located in one of the EU28 countries.
Note: By enroling in VAT Calculation Services, the Seller agrees to provide invoices for Amazon-fulfilled shipments dispatched from countries where the Seller has not provided a valid VAT registration number.

4. VAT Registration Numbers

Our VAT Calculation Services will use all verified VAT registration numbers (EU only) in order to determine the jurisdiction in which the transactional VAT liability exists when selling on Amazon’s European marketplaces. VAT numbers can be input during the VAT Calculation Services enrolment process and then managed from the VAT Information section in Account Info in Seller Central.

Amazon performs verification on VAT registration numbers supplied by both Sellers and Customers. However, Amazon cannot guarantee the validity of a VAT registration number used in its VAT Calculation Service at any moment. Only VAT registration numbers granted by EU Member States will be used in VAT Calculation Services.

VAT registration numbers are verified via various methods:

If a VAT registration number is activated for intra-community (EU Cross Border) transactions it will be verified via the EU VAT Information Exchange System (VIES) database. Further details about the verification process can be found here.

Amazon allows Customers to enter their Local VAT ID’s (VAT IDs that are only domestically verifiable) in Italy and Spain. These VAT registration numbers are verified by the below described process. Once verified they will be used in the VAT calculation performed by VAT Calculation Services.

  • For Italian VAT registration numbers, these are verified against the local IT tax authorities website, Agenzia.
  • For Spanish VAT registration numbers, a copy of the VAT certificate is required. Further details about this verification process can be found here

The requirement to have a VAT registration number where you store inventory

  • If you have goods stored in one of our European fulfilment centres (FC’s), you must have a valid VAT registration number in that jurisdiction for VAT Calculation Services to perform VAT calculation and invoicing. For example, if you have goods in a German FC you should have a German VAT registration number.
  • If you successfully join VAT Calculation Services and then subsequently remove VAT registration numbers from your account or if you do not have a valid VAT registration number for a given jurisdiction, then VAT Calculation Services will charge the Customer the tax inclusive price but not perform a VAT calculation or generate a VAT invoice. VAT Calculation Services will only generate a receipt for all orders where the downloadable VAT invoice badge was promised and the Seller will therefore be responsible for generating their own invoice.

Seller Central Legal name

VAT Calculation Services requires your Legal Name in Seller Central to match exactly with the legal name associated with your VAT registration number. Once your legal name has been correctly entered if you like a different Trading Name displayed on your storefront you can achieve this by updating your ‘Display Name’ which can be found under ‘Account Information’.

Group VAT registration number

If you have a Group VAT registration number, and the company you are registering for VAT Calculation Services is not the parent company, you must provide your ‘Certificate of Members’ which states all of the Legal Company names associated with the VAT registration number. The Legal Name of the Company you are registering on VAT Calculation Services must be shown on this Certificate in order to pass the Legal Name eligibility check.

Italian and Spanish Customers without a VAT registration number

Spanish and Italian Customers who do not have a VAT registration number can provide their Business Registration Number (Número de Identificación Fiscal, sujeto no pasivo de IVA) or Codice Fiscale number.

5. Determining the VAT Jurisdiction

The Vertex jurisdiction selection logic uses information from four transaction-related details to determine whether it is a B2B or B2C transaction as well as the VAT jurisdiction and tax type (i.e., VAT). These four transaction-related details are:

  • Seller VAT Registrations;
  • Customer VAT registrations (if applicable);
  • Ship-from location;
  • Ship-to location.

5.1 Seller VAT Registrations:

All the EU member state granted VAT registration numbers that have been supplied by the Seller under Account Info > Tax Information > VAT/GST Registration Numbers

5.2 Customer VAT Registrations:

All EU member state granted VAT registration numbers that have been supplied by the Customer in their Amazon account.

5.3 Ship-from location:

A. Products shipped using Fulfilment by Amazon (FBA): Upon shipment of the product, the final VAT calculation will use the actual ‘Ship From’ location for shipments originating from an Amazon fulfilment location.

B. Seller-fulfilled products for VAT calculation purposes: Seller-fulfilled shipments will use the default ‘Ship From’ location configured within your VAT calculation settings.

4.4 Ship-to location:

The ‘Ship To’ location is based on the Customer-supplied country, county/province, city and postal code as Amazon’s VAT Calculation Services will also handle VAT calculation for orders shipped to certain VAT excluded territories such as the Channel Islands. Our VAT Calculation Services will calculate tax based on the tax location our system determines to have the highest confidence level as matching the Customer-supplied address.

6. Assigning a Product Tax Code (PTC)

The PTC is important in order to determine the applicable VAT rate on your products in the relevant country where VAT is due (tax jurisdiction).

As a system default, the standard rate PTC (A_GEN_STANDARD) will be set as the Seller default PTC once VAT Calculation Services are enabled. VAT Calculation Service will always apply the standard VAT rate on your products in each of the countries (for example, currently 19% in Germany, 20% in UK).

If you wish to change the default behaviour and assign another PTC, you can do so by either changing the Seller-defined default PTC assignment within your tax settings, or by setting offer level PTC assignments. An offer level PTC assignment applies on an individual offer basis and can also be used to choose a PTC that is different from your Seller-defined default PTC. The Offer level PTC assignment will take precedence over the default PTC.

Please refer here for the list of specific PTC codes and associated VAT rates.

Note: All PTC’s must be spelled correctly, as displayed in the EU Seller Central help pages, for them to be effective in VAT calculations. Invalid PTC’s will be disregarded in VAT calculations in favour of the Seller’s default PTC. Offer level PTC assignments are only valid per the marketplace you make the assignment, if you want the assignment to be valid across all EU marketplaces then you must perform an offer level PTC assignment on each marketplace.

7. Determining the VAT Exclusive/Inclusive Price

Amazon’s VAT Calculation Services utilises three primary components to support a calculation:

  • VAT registration numbers and VAT calculation settings configured by the seller;
  • Logic and rules built into Vertex Indirect Tax O Series;
  • Accompanying methodologies applied by Amazon, e.g. VAT exclusive price determination and the allocation of order-level promotions to individual items in an order.

Our VAT Calculation Services uses the Seller-provided tax inclusive selling price (“Display price”) and the logic described below, which is based on the seller’s VAT registration status, to determine which VAT rate will be used to derive the tax exclusive price (“VAT exclusive price”).

7.1 Imputation of VAT from the display price to derive the VAT exclusive price:

Sellers are expected to provide an item display price targeted at customers in the local marketplace on which they list their items.

Therefore, generally, the imputation of VAT from the display price will be performed as follows:

Note: The standard German VAT rate (19%) and Polish VAT rate (23%) have been used below. The actual VAT rate used will depend on the PTC (see section 6.0).

  • If a Seller is VAT registered in the country of the marketplace (UK, Germany, France, Italy or Spain), we will use the VAT rate of the product in that country to derive the VAT exclusive price.
    • Example:

      A German VAT-registered Seller, that lists an item at €11.90 on Amazon.de, will see the following VAT exclusive price for an item subject to VAT at the standard rate:

      11.90/ (1 + 0.19) = €10.00

  • If the Seller does not have a VAT registration number in the marketplace country, we will use the VAT rate of the product in the default ‘Ship From’ country the Seller has provided.
    • Example:

      A Polish VAT-registered Seller, whose default 'Ship From' country is also Poland and who is not VAT registered in Germany, lists an item at €12.30 on Amazon.de. The Seller will see the following VAT exclusive price for an item subject to VAT at the standard rate:

      12.30/ (1 + 0.23) = €10.00

Note: Amazon Business Customers: The logic outlined above will also be used to determine the VAT exclusive item price shown to Amazon Business Customers on the Amazon website as part of their Amazon Business shopping experience.

7.2 Computation of VAT on the VAT exclusive price:

Once the VAT exclusive price is determined, based upon the logic detailed above, a VAT calculation is then performed to determine the VAT on that price which is also the total price to be charged to the Customer.

This calculation takes into account the three primary components, that is, VAT registration numbers, Vertex rules and logic and accompanying Amazon methodologies, in order to perform the computation.

VAT calculations are performed separately on each of the following components:

  1. Item:

    VAT is calculated on the item by first deriving the VAT exclusive price off the display price, as described above. Once the VAT exclusive price is determined, the final VAT inclusive selling price is determined by performing a VAT calculation using the methodology described in section 7.0.

    • Example – B2C:

      A German and Austrian VAT-registered Seller lists an item at €11.90 on Amazon.de, ships the item from Germany and sells the item to a B2C Customer based in Austria (VAT rate = 20%):

      VAT exclusive item price calculation: 11.90/ (1 + 0.19) = €10.00

      Final VAT inclusive item price calculation: 10.00 * (1 + 0.20) = €12.00

    • Example – B2B:

      A German and Austrian VAT-registered Seller lists an item at €11.90 on Amazon.de, ships the item from Germany and sells the item to a B2B Customer based in Austria (VAT rate = 0% - intracommunity supply of goods):

      VAT exclusive item price calculation: 11.90/ (1 + 0.19) = €10.00

      Final VAT inclusive item price calculation: 10.00 * (1 + 0.00) = €10.00

  2. Promotions:

    Promotions are fixed-price inclusive, meaning the VAT inclusive promotion value is only determined upon the calculation of the final VAT inclusive selling price (see section 7.2 A). The VAT calculated on the promotion follows the VAT rate associated with the item. Once the VAT inclusive promotion value is determined, we will use the VAT rate associated with the item to derive the VAT exclusive promotion value.

    • Example – B2C:

      A German and Austrian VAT-registered Seller lists an item at €11.90 on Amazon.de and sells the item to a B2C Customer based in Austria (VAT rate = 20%) with a 10% promotion:

      VAT exclusive item price calculation: 11.90/ (1 + 0.19) = €10.00

      VAT inclusive item price calculation: 10.00 * (1 + 0.20) = €12.00

      VAT inclusive item promotion calculation: 12.00 * 0.10 = €1.20

      VAT exclusive item promotion calculation: 1.20/ (1 + 0.20) = €1.00

      Final VAT inclusive item price calculation: 12.00 – 1.20 = €10.80

    • Example – B2B:

      A German and Austrian VAT-registered Seller lists an item at €11.90 on Amazon.de and sells the item to a B2B Customer based in Austria (VAT rate = 0% - intracommunity supply of goods) with a 10% promotion:

      VAT exclusive item price calculation: 11.90/ (1 + 0.19) = €10.00

      VAT inclusive item price calculation: 10.00 * (1 + 0.00) = €10.00

      VAT inclusive item promotion calculation: 10.00 * 0.10 = €1.00

      VAT exclusive item promotion calculation: 1.00/ (1 + 0.00) = €1.00

      Final VAT inclusive item price calculation: 10.00 – 1.00 = €9.00

  3. Shipping Charges:

    Shipping charges are fixed-price inclusive, meaning the price of shipping will not vary based upon the transactional details listed in section 5.0. Only the VAT exclusive shipping charge may vary from one transaction to another.

    • Example – B2C:

      A German and Austrian VAT-registered Seller ships an item from Germany to a B2C Customer in both Germany (19%) and Austria (20%) and the VAT inclusive shipping charge is the same to both countries, that is, €5.00. In both cases, the customer will always pay the full €5.00

      Fixed VAT inclusive shipping charge to a German Customer: €5.00

      VAT exclusive shipping price calculation: 5.00/ (1 + 0.19) = €4.20

      Fixed VAT inclusive shipping charge to an Austrian Customer: €5.00

      VAT exclusive shipping price calculation: 5.00/ (1 + 0.20) = €4.17

    • Example – B2B:

      A German and Austrian VAT-registered Seller ships an item from Germany to a B2B Customer in both Germany (19%) and Austria (0% - intracommunity supply of goods) and the VAT inclusive shipping charge is the same to both countries, that is, €5.00. In both cases, the Customer will always pay the full €5.00

      Fixed VAT inclusive shipping charge to a German Customer: €5.00

      VAT exclusive shipping price calculation: 5.00/ (1 + 0.19) = €4.20

      Fixed VAT inclusive shipping charge to an Austrian Customer: €5.00

      VAT exclusive shipping price calculation: 5.00/ (1 + 0.00) = €5.00

    Shipping Taxability Options:

    By default, each shipping charge is assigned the same product tax code as the corresponding item. Therefore, the same product taxability rules will be applied to shipping charges. A Seller may override the default shipping taxability rule by designating if shipping should always be taxable at the standard VAT rate.

    Sellers should consult a tax advisor if they need assistance in configuring this tax setting for their business.

  4. Gift Wrap Charges:

    Gift wrap charges are fixed-price inclusive, meaning the price of gift wrap will not vary based upon the transactional details listed in section 5.0. Only the VAT exclusive gift wrap charge may vary from one transaction to another.

    • Example – B2C:

      A German and Austrian VAT-registered Seller gift wraps an item and ships it from Germany to both a Customer in both Germany (19%) and Austria (20%). The VAT inclusive gift wrap charge is the same to both countries, that is, €3.00. In both cases, the customer will always pay the full 3.00 EUR.

      Fixed VAT inclusive gift wrap charge to a German Customer: €3.00

      VAT exclusive gift wrap price calculation: 3.00/ (1 + 0.19) = €2.52

      Fixed VAT inclusive gift wrap charge to an Austrian Customer: €3.00

      VAT exclusive gift wrap price calculation: 3.00/ (1 + 0.20) = €2.50

    • Example – B2B:

      A German and Austrian VAT-registered Seller gift wraps an item and ships it from Germany to both a Customer in both Germany (19%) and Austria (0% - intracommunity supply of goods). The VAT inclusive gift wrap charge is the same to both countries, that is, €3.00. In both cases, the Customer will always pay the full €3.00.

      Fixed VAT inclusive gift wrap charge to a German Customer: €3.00

      VAT exclusive gift wrap price calculation: 3.00/ (1 + 0.19) = €2.52

      Fixed VAT inclusive gift wrap charge to an Austrian Customer: €3.00

      VAT exclusive gift wrap price calculation: 3.00/ (1 + 0.0) = €3.00

    Gift Wrap Taxability Options:

    By default, each gift wrap charge is assigned the same product tax code as the corresponding item. Therefore, the same product taxability rules will be applied to gift wrap charges. A Seller may override the default gift wrap taxability rule by designating if gift wrap should always be taxable at the standard VAT rate.

    Sellers should consult a tax advisor if they need assistance in configuring this tax setting for their business.

8. Time of Sale for VAT Calculation

VAT is pre-calculated at order checkout using the VAT calculation rules and rates in effect on the order checkout date. However, the VAT actually charged to the Customer will be based on the VAT calculation rules, rates and actual ship-from location in effect at the time a payment method charge is authorized.

Depending on how a shipment is fulfilled, payment method charge authorization could occur shortly after an order is submitted or immediately prior to product shipment.

Many factors can change between the order checkout date and the payment method charge authorization date. As a result, the pre-calculated VAT amount may differ from the amount actually charged. For example - VAT calculation rules or rates and the actual ship-from location may change (located under Fulfilment by Amazon Settings) and this could lead to an increase or decrease in the VAT charged and hence an increase or decrease in the price margin.

9. Refunds

All refund amounts will be treated as VAT exclusive and VAT calculations on refunds will follow the VAT calculation treatment of the original sales transaction to which it relates.

The Customer refund process will depend on whether the product is shipped using Fulfilment by Amazon (FBA) or is Seller-fulfilled.

9.1 Products shipped using FBA:

Our VAT Calculation Services will calculate VAT on Customer return and non-customer return related refunds and adjustments, for example a Seller issues a partial refund against the product but did not require the Customer to return it.

Note: We will not calculate VAT on adjustments designated as concession/goodwill. Our VAT Calculation Services performs VAT calculation on the return of physical goods without regard to the period of time between the original sale and the return.

9.2 Seller-fulfilled products:

Our VAT Calculation Services will calculate VAT on any refunds issued by the seller via Seller Central. All such refunds are issued at the sole discretion of the seller.

Note: We will not calculate VAT on adjustments designated as concession/goodwill.

VAT Calculation Service does not support VAT Only Refunds which produce a Credit Note and a new 0% VAT invoice. This mainly applies to B2B cross-border supplies of goods where the customer informs the seller afterwards about his VAT registration number in the other EU Country and claims refund of the VAT charged. If you must process a VAT Only Refund, please use the Goodwill refund option and produce your own credit note and new VAT invoice.

10. VAT Rate Maintenance

VAT rates, as well as VAT calculation rules and logic, are supplied by our third party provider, Vertex, which provides monthly updates that we implement before the end of the calendar month.

11. VAT Invoicing

Amazon’s VAT Calculation Services will automatically create VAT invoices and credit notes to the Customer in the name and on behalf of the Seller. The Seller however legally remains the issuer of the VAT invoice that has been generated using Amazon’s VAT Calculation Services. VAT calculation and invoice generation will also occur on orders that were placed prior to the activation date but fulfilled after the activation date. You must ensure that you no longer produce VAT invoices and credit notes for such orders and all transactions that occur after enrolment within our VAT Calculation Services.

Sellers still need to provide credit notes, as required, for transactions that occurred prior to enrolment within VAT Calculation Services but which are only returned/refunded after.

Amazon’s VAT Calculation Services uses EU VAT Directive rules to create VAT invoices and not local country specific exceptions. A unique VAT invoice and credit note sequence will be created for each country within which the Seller is VAT registered and which will be printed on the documents. Invoice numbers are created in numerical sequence. In the event a Seller deactivates VAT Calculation services and then re-activates the service the sequence will continue from the last number. There are situations however where you may witness a skip within that sequence. There are two reasons why this may occur:

  • Cancelled Orders: A Customer places an order, an invoice number is assigned but the Customer cancels that order. Since the invoice number was assigned to an order that was cancelled the next number in the sequence is used for the following order.
  • Error in fulfilment process: During the order and fulfilment process an invoice number is assigned, if for any reason the process needs to restart a new invoice number is assigned.

Simplified VAT Invoices and Simplified Credit Notes will be generated when a Seller sells under their Spanish VAT registration number to Customers who have not provided a VAT registration number, a business registration number or their Citizen ID.

Receipts (that is, no VAT invoices) will be generated when:

  • a Seller sells under their Italian VAT registration number to Customers who have not provided a VAT registration number or a Codice Fiscal.
  • a Seller ships goods from one of our European fulfilment centre but does not have a valid VAT registration number in that jurisdiction and for those orders downloadable VAT invoice badge was granted.

XML invoices will be generated for domestic B2B sales in Italy and the SDI will send this directly to the customer if the following conditions are met:

  • You have entered your Sistema di Interscambio (SDI), Account ID and/or Certified Email Address or
  • You have a VAT number and are physically present in Italy (your physical presence is considered true if the address associated with your IT VAT Number is in Italy)

VAT invoices are available for download in Seller Central:

  • Seller Fee invoices – can be accessed by navigating to ‘Tax Document Library’ folder available under the ‘Reports’ tab and choosing ‘Seller Fee Invoices’ tab.
  • Amazon VAT Calculation invoice URLs – can be accessed by navigating to ‘Tax Document Library’ folder available under the ‘Reports’ tab and choosing ‘Amazon VAT Calculation’ tab. The invoice URLs will be embedded as part of the report extracted for a chosen period.
  • The Italian XML invoice can be obtained by going to your personal Tax portal on the Italian Tax Authorities website. Please note Amazon will provide a duplicate PDF document for each order in Seller Central but this is not an official invoice. You can only receive the official invoice from your personal Tax portal.

In the event a sale occurs where products are shipped from a location the Seller does not have a VAT registration number then a receipt will be generated instead of a VAT invoice.

12. VAT Calculation Reporting

For sellers who use our VAT Calculation Services, the VAT Calculations report will include VAT calculation information for Sellers. This information can be useful in the preparation of the Seller’s periodic VAT returns. Additional information can also be found in the Amazon VAT Transactions Report in the ‘Reports’ section of your Seller Central account.

Sellers should consult a tax advisor if assistance is needed in the compilation and filing of any tax-related returns.

13. Enrolment Activation

During VAT Calculation Services enrolment, Sellers will be provided with the opportunity to determine when the calculation service will commence. The VAT Calculation settings will be effective from 12:00:00 AM UTC for any activation date Seller chooses.

Please note any amendments made to your calculation service commencement date post activation requires 30 minutes for the changes to take into effect in the system. Sellers are advised to monitor their transactions for the period the change is being made and make corrections as required.

14. Deactivation

Sellers will be provided with the opportunity to deactivate VAT Calculation Services. Sellers will be solely responsible for calculation, VAT invoicing and reporting from that date onwards.

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