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This article applies to selling in: United Kingdom

Tax Authority Penalties

The following table contains, by means of various use cases, some reasons for incurring penalties in VAT Services on Amazon subscription countries, details on the potential penalty amount and late payment interest rates, if any. The application of penalties in case of infractions can be a complex and subjective legal matter. Therefore, this table cannot be seen as a complete overview of the penalties or policies from the tax authority.

Note: Details under the section “Tax Authority Penalties” have been provided by a third-party tax provider, Avalara, and should be read as general guidance only. Tax authorities will make assessments on penalties on a case-by-case basis. Information on this page does not constitute tax, legal or other professional advice, and must not be used as such.
Country Causes Amounts Interest
UK Late VAT filing and/or late VAT payment Penalties increase with each late payment. The first late payment will incur no penalties, after which:

Annual turnover is less than GBP 150,000.00:

  • 2nd late payment = no penalty
  • 3rd late payment = 2% of VAT liability (penalty waived if less than GBP 400.00)
  • 4th late payment = 5% of VAT liability (penalty waived if less than GBP 400.00)
  • 5th late payment = 10% of VAT liability or GBP 30.00, whichever is more
  • 6th and subsequent late payments = 15% of VAT liability or GBP 30.00, whichever is more

Annual turnover is GBP 150,000.00 or more:

  • 2nd late payment = 2% of VAT liability (penalty waived if less than GBP 400.00)
  • 3rd late payment = 5% of VAT liability (penalty waived if less than GBP 400.00)
  • 4th late payment = 10% of VAT liability or GBP 30.00, whichever is more
  • 5th and subsequent late payments = 15% of VAT liability or GBP 30.00, whichever is more

VAT return contains careless or deliberate inaccuracy 100% of any tax under-stated or over-claimed

Tax authorities’ assessment is too low and you don’t inform them it is wrong within 30 days 30% of assessment

Germany Late VAT filing 1% to 10% of VAT liability

Late VAT payment 1% per month on every full EUR 50.00 unpaid; e.g. VAT liability = EUR 183.00; payment delay= one month; penalty = 1% of 150 = EUR 15.00

Unpaid VAT discovered in Audit Interest payment starting 15 months after payable VAT deadline;

E.g. If payable VAT deadline is 10 Jan 2014; interest starts in April 2016

6% per annum
France Late VAT filing 0-30 days – Up to 10%

Return not submitted within 30 days after receiving a notification from the Tax Authorities – Up to 40%

Suspicion of fraud – Up to 80%

2.4% per annum
Late VAT payment 0-30 days – Up to 10%

Return is not submitted within 30 days after receiving a notification from the Tax Authorities – Up to 40%

Suspicion of fraud – Up to 80%

2.4% per annum
Unpaid VAT discovered in Audit Decided on a case-by-case basis Decided on a case-by-case basis
Spain Late VAT registration EUR 400.00

Late VAT filing
  1. If notified by the Tax Authorities and tax payment due: 50-150% of the VAT payments due
  2. If notified by the Tax Authorities and no VAT payment due: EUR 200
  3. If voluntary disclosure and no VAT payment due: EUR 100, EUR 200
  4. If voluntary disclosure and tax payment due: 5-25% of the VAT payments due (25% reduction if paid within deadlines)

Incomplete returns EUR 300.00-EUR 20,000.00; Calculated with EUR 20.00 per incomplete information

Late VAT payment 0-3 months – 5% of VAT payment due;

3-6 months – 10% of VAT payment due

6-12 months – 15% of VAT payment due

After 12 months – 20%

After one year – 3.75% per annum
Unpaid VAT discovered in Audit 50-150% of the VAT payment due

Poland Late VAT registration PLN 93.60 to PLN 18,720.00

Late VAT filing PLN 93.60 to PLN 18,720.00

Late VAT payment Interest on payment due 8% per annum
Unpaid VAT discovered in Audit Decided on a case-by-case basis
Czech Republic Late VAT filing For each day of delay: 5% of VAT payment due

Late VAT payment Interest on payment due 15% + <Repo rate in the applicable country for every calendar half year>
Unpaid VAT discovered in Audit 20% of the VAT payment due

For Italy Reduced penalties (applied to base penalty) Time frame
Reason Penalties
Late payments 30% 1/10 + (1/15 for each day of delay) Within 14 days of the violation
1/10 Between 15 and 30 days from the violation
1/9 Between 31 and 90 days from the violation or from the deadline of Annual Return
1/8 Within one year of the violation or within the deadline of Annual Return relating to FY in which the violation occurred
1/7 Within two years of the violation or within the deadline of Annual Return relating to FY following the year in which the violation occurred
1/6 After two years of the violation or after the deadline of Annual Return relating to FY following the year in which the violation occurred
1/5 After having received the “verbale di constatazione - PVC” (official notice)
Incorrect Annual Returns 90% to 180% of VAT payment due 1/9 Within 90 days of the violation or of the Annual Return deadline
1/8 Within one year of the violation or within the deadline of Annual Return relating to FY in which the violation occurred
Communications not filed (Annual Communication, ANR or black list) EUR 516.00 to EUR 2,065.00 1/7 Within two years of the violation or within the deadline of Annual Return relating to FY following the year in which the violation occurred
1/6 After two years of the violation or after the deadline of Annual Return relating to FY following the year in which the violation occurred
Annual Returns not filed 120% to 240% of the VAT payment due; minimum EUR 258.00 50%; minimum EUR 200.00 Within 1 year of the Annual Return deadline
Accounting violations
  1. 90% to 180% of the VAT payment due; minimum EUR 500.00
  2. EUR 258.00 to EUR 2,000.00 if the VAT payment has been made
  3. 5% to 10% of the VAT payment due if the transactions are not subject to VAT
1/9 Within 90 days of the violation
Not issuing invoices or receipts 150% of the VAT payment due; minimum of EUR 500.00 1/9 Within 90 days of the violation
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