Amazon’s VAT Calculation Service provides sellers with VAT calculation services and invoicing functionality. By enrolling in our VAT Calculation Service, Amazon Business sellers will also be able to offer VAT exclusive prices to Amazon Business customers and will have the Downloadable VAT Invoice badge for their offers, increasing the visibility of their products on Amazon Business. Additionally, for Amazon Business sellers that are located outside of the EU and ship goods directly from their non-EU location to customers located in the EU (acting as the importer of records), a Downloadable Receipt Badge will be displayed on such offers.
No, Amazon’s VAT Calculation Service is available to all sellers as long as they fulfil the basic enrolment criteria.
Amazon’s EU VAT Calculation Service can only be used for sales on the Amazon EU marketplaces. In principle, the VAT Calculation Service only supports products that are dispatched from locations within the EU. However, for orders that are directly shipped from outside the EU into the EU, the VAT Calculation Service will issue a receipt (i.e. a ‘proof of purchase’, not a VAT invoice) with no VAT calculation.
Refer to our EU VAT Calculation Service Methodology document. This document will provide you with comprehensive information on the functionality as well as the logic and methodologies applied.
Sellers are able to define a future date for the activation of the VAT Calculation Service. When you register, the first available activation date will be after five working days.
You can go back to the VAT Calculation Service settings page in Seller Central and update your information. The tax information section can be found here.
The VAT included in your pricing should be inclusive of the target marketplace country’s VAT if you are VAT registered in that country. For instance, if you are VAT registered in Germany, your Amazon.de prices should be inclusive of German VAT (assuming there are no special VAT rates applicable). If you are not VAT registered in that country, your pricing should be inclusive of the VAT associated with the Default country for VAT exclusive price, which you selected in the tax enrolment process. For instance, if you selected UK as the Default country for VAT exclusive price and you are not VAT registered in Germany, your Amazon.de prices should be inclusive of UK VAT (assuming there are no special VAT rates applicable).
Amazon’s VAT Calculation Service uses the tax inclusive selling price (‘Display price’) that you provided for the marketplace, as well as logic that is based on your VAT registration status in certain countries, in order to determine which VAT rate will be used to derive the exclusive price (‘VAT exclusive price’).
For comprehensive information on how tax calculations are performed and how that influences your pricing, refer to the EU VAT Calculation Service Methodology document.
Your VAT exclusive prices will only be visible to Amazon Business customers and only if you are enrolled in Amazon’s VAT Calculation Service.
VAT calculation on your orders will start on the activation date you stipulate and on the condition that your settings fulfil the eligibility criteria for participation in VAT Calculation Service.
After activation, our VAT Calculation Service will automatically issue invoices and credit notes to Amazon Business customers and the customers who have entered their VAT numbers or tax codes into their accounts, where applicable. You should ensure that you no longer produce VAT invoices and credit notes for transactions that occur after enrolment within the service. You would still need to provide credit notes, as required, for transactions that occurred prior to the activation of the VAT Calculation Service.
Amazon’s VAT Calculation Service supports VAT invoice correction to update the Billing Address and/or the Legal Business Name of the Business customers on the VAT invoice. VAT Calculation Service issues a credit note against the original invoice and a new corrected VAT invoice with the updated Billing Address and/or Legal Business Name.
You should provide the address from where you self-fulfil your products as your default ship-from address. Our VAT Calculation Service will use Amazon’s fulfilment location addresses for products fulfilled as part of the FBA programme.
If you ship products from locations outside the EU, you can still use the service for your FBA orders by signing up with your non-EU address as the default ship-from location. In principle, the VAT Calculation Service will only perform VAT calculation and issue VAT invoices for your FBA offers. However, if you are importing products from outside the EU, clearing the duties and taxes associated with that import in your own name and then making local (intra-EU) sales from that location, you may specify that importation point as the default ship-from location. In that case, the VAT Calculation Service will also perform VAT calculation and issue VAT invoices.
For orders that are directly shipped from outside the EU into the EU for which duties and taxes are cleared in the customers’ name, the VAT Calculation Service will only issue a receipt (i.e. a ‘proof of purchase’, not a VAT invoice).
Our VAT calculation service includes support for several classes of products that require special VAT treatment – including food, clothing and books. During the enrolment process you will be asked to provide an Amazon-supplied default product tax code (e.g. standard-rated products or food) to be applied to your offers. If you list products across a number of different product tax codes, you can override the default code by specifying a product tax code at the offer level. You can find the complete list of product tax codes available here.
We will complete two steps to determine the amount to be charged to the customer. First, we will remove the VAT included in the VAT-inclusive offer price to determine the VAT-exclusive selling price. Next, we will use your tax settings and transactional information (including location, product and customer information) to determine the correct amount of VAT to be added to the VAT-exclusive selling price. This may result in a higher or lower VAT-inclusive selling price to the customer. If the customer is a VAT-registered business or if the order is shipped outside the EU, this may result in no additional VAT (subject to the reverse charge mechanism or zero rate). We do not calculate additional VAT on sales of products shipped outside the EU.
If you believe your business is required to be registered for VAT purposes, please consult your tax advisor on how to obtain a VAT registration number.
In principle, yes – Sellers are required to provide at least one valid European Union (EU) VAT registration number in order to enrol into the VAT Calculation Service. When enrolled into Fulfilment by Amazon, sellers must provide all EU VAT numbers associated with their business for countries where their inventory is stored. Storing FBA units in a country outside your home-marketplace country will trigger additional VAT registration and reporting obligations for your business. Please consult your local tax advisor for guidance, as necessary.
Yes, Amazon does take steps to verify a seller’s VAT registration number. This can include, but is not limited to, performing checks against the EU’s VAT Information Exchange System (VIES). Please allow 1-4 business days for your new VAT registration number to complete the verification process.
Yes, Amazon’s VAT Calculation Service allows you to enter multiple European Union (EU) VAT registration numbers as part of the enrolment process. VAT registration numbers can also be provided by visiting the Tax Information section on Seller Central’s Account Info page.
The ‘primary’ VAT registration number you select should be the VAT registration number associated with your primary place of business. This is the VAT registration number that will be used to determine how VAT will be applied to sales commissions. Selecting your ‘primary’ VAT registration number does not affect Amazon’s VAT Calculation Service. This means that if you are enrolled in VAT Calculation Service, all valid EU VAT registration numbers will be used in the service, irrespective of whether or not the number is designated as ‘primary’. If you need assistance in determining your primary place of business, please consult your local tax advisor.
No. However, in order to perform precise tax calculations for your self-fulfilling orders within the EU, you have to provide a VAT registration number for your default ship-from location. It is also important that you provide VAT registration numbers for any Amazon fulfilment locations that you signed up for as part of the FBA programme. For a complete overview, refer to the EU VAT Calculation Service Methodology document.
You can edit, delete or add additional VAT registration numbers by going to the VAT Calculation Service page in your Account Information within Seller Central.
The default ship-from address is used to determine where you self-fulfil your orders. For a comprehensive overview, please refer to the EU VAT Calculation Service Methodology document.
The ship-from address represents the location from which seller-fulfilled goods are dispatched, whereas your registered business address generally represents your primary or officially registered place of business.
Currently, Amazon’s VAT Calculation Service can only support a single ship-from location for seller-fulfilled items. If you have multiple ship-from locations, please carefully consider whether Amazon’s VAT Calculation Service is suitable for your business by referring to the EU VAT Calculation Service Methodology document.
In order to perform precise tax calculations, Amazon’s VAT Calculation Service requires sellers to provide a full ship-from address.
A Product Tax Code (PTC) is an Amazon-defined code that has the correct set of VAT rates across the European Union for a specific product category. The PTC is used to determine the appropriate VAT rate to apply to sales of your products. You can select the default PTC that you will use for most of your listings. Additionally, you can set a PTC at the offer listing level.
Our VAT Calculation Service provides sellers with a wide variety of Product Tax Codes (PTCs) to select from. Please contact your tax advisor for assistance on which PTCs best fit your needs.
The default Product Tax Code (PTC) will be applied to all products that do not have an offer listing level PTC assigned. The default PTC should be the PTC that you want to use for most of your listings. Please contact your tax advisor for assistance on which default PTC best fits your needs.
The product tax code ‘A_GEN_NOTAX’ is intended to be used for products that are outside the scope of EU VAT, for example some gift cards and vouchers. This is explained in more detail on the Seller Central help page for ‘A_GEN_NOTAX’.
You will still be able to choose the most appropriate default product tax code for your circumstances from the full list on Seller Central.
Yes. If you believe that you are listing products that are outside the scope of VAT and ‘A_GEN_NOTAX’ is the correct product tax code for your circumstances, then you can continue to assign the ‘A_GEN_NOTAX’ product tax code to your offers. However, you will not be able to set it as your default product tax code as described above.
If you assign a product tax code to one of your listings, this product tax code will override your default product tax code. You can review the details of your listings, and update the product tax code, in the Manage Inventory on Seller Central.
Not immediately. If you are currently using ‘A_GEN_NOTAX’ as your default product tax code, this will continue to apply until the next time that you update and save changes to your VAT Calculation Service settings on Seller Central.
However, please note that in the near future we will stop allowing the use of ‘A_GEN_NOTAX’ as the default product tax code. Before we do this, we will give you a 30-day notice to prepare for the change. In the meantime, we encourage you to start verifying whether ‘A_GEN_NOTAX’ is the most appropriate product tax code for your listings.
If you are unsure which default product tax code is right for your circumstances, we recommend you to speak to your tax advisor.
The Product Tax Code (PTC) is a code defined by Amazon that assigns the correct VAT rates to be applied throughout the EU for a specific category of products. The default PTC will be used for all products for which no tax code has been specified. If you wish to provide a PTC other than the default PTC for some of your products, you can set it via Manage Inventory in Seller Central or using an inventory file.
The VAT Calculations Report provides the following information on:
VAT Invoices amended by Amazon’s VAT Calculation Service on behalf of sellers using the service
To access the VAT calculation report, go to Reports > Tax Document Library > Amazon VAT Calculations Tab.
To access the VAT Invoices, go to Reports > > Tax Document Library > Amazon VAT Invoices Tab.
You are responsible for the accuracy of your data used for any reporting or tax purposes.
The report and VAT Invoices are available to all sellers actively using Amazon’s VAT Calculation Service. For multi-user accounts, the user account must have Tax Settings permissions set to View & Edit.
The VAT Transactions Report is monthly report that provides detailed information on transactions for sales, returns, refunds, cross border inbound, and cross border fulfilment for all transactions.
The VAT Calculation Report provides only details regarding VAT calculations and invoices performed and created by the VAT Calculation Service. The VAT Calculation Report does not report on FBA inbound shipments and fulfilment centre transfers. More information on the VAT Transactions Report.
Calculation data and invoices will be available in the VAT Calculations Report three days after the order has been shipped.
VAT invoices will be available in the Amazon VAT Invoices three days after the order has been shipped.
You can find the field names, definitions and examples here.
VAT Calculations: The VAT Calculations Report provides the following information on:
Invoices: The Invoices Report provides all the information about invoices and receipts for a given requested period. The VAT Invoices will be separate PDFs in a zipped folder for optimal downloading.
Yes. If you have activated Amazon’s VAT Calculation Service, Amazon will create the invoice in XML-PA format and submit directly to the Tax portal, Sistema di Interscambio (SDI), on your behalf. For more information, refer to the EU VAT Calculation Service Methodology document.
SDI is a portal owned and operated by the Italian government. All in-scope invoices must be submitted to SDI in a specific XML format. Invoices will go through an automatic authentication process, after which the submitting system will receive an acceptance receipt or rejection notice. SDI sends accepted invoices directly to the customer’s SDI mailbox.
VAT Calculation Services creates and submits the invoice data via XML to the SDI as soon as that data is ready. The SDI then reviews this information and sends the official invoice directly to the customer.
You will need to provide your SDI account ID and certified email address in order for VAT Calculation Service to create and send an XML invoice on your behalf. To provide Amazon with your SDI information:
The VAT Calculation Service uses your SDI Account ID and Certified Email Address information as an indicator that you require an XML invoice to be created. Without this information a PDF Invoice will be sent to your customer.
You will need to go to your personal Tax portal on the Italian Tax Authorities website to download the official XML invoice. Please note that Amazon will provide a duplicate PDF document and duplicate XML invoices submitted to SDI for each order in Seller Central, but note this is not an official invoice. You can only receive the official invoice from the Tax portal.
For more information on how to obtain SDI account ID and certified email address, visit the Interchange System website directly.
Yes. Amazon will create a credit note in XML-PA format and submit directly to SDI.
If you receive an invoice request from a customer, check whether the customer has registered the VAT number or tax code in their Amazon account. If the customer is an Amazon Business customer, the VAT Calculation Service will automatically issue the invoice.
The VAT Calculation Service issues a purchase receipt for the following use cases:
If you are contacted by a customer to change the invoices issued by the VAT Calculation Service, follow the below steps:
If two invoices have been issued for the same transaction, you will need to cancel the invoice you issued by means of a credit note.
You have at your disposal the VAT Calculation Service Report in which you will find the information starting from the third day after the shipment. Before the three days, the following applies: If the customer is an Amazon Business customer (you can check it from the order detail where you will find evidence of the customer type), the invoice will be issued by the VAT Calculation Service. If the order does not have the Amazon Business badge on the order page and the customer has requested the invoice, you will need to check with the customer if they have entered the tax code or VAT number in their Amazon account. If you have entered this information, the VAT service has automatically issued an invoice. If you have not entered this information, the VAT service has issued a purchase receipt.
There are two different types of customer accounts:
The table below provides a list of territories where the EU VAT rules do not apply. Therefore, VAT Calculation Services (VCS) treats shipments to these territories as VAT exempt for exports.
|(a) | the Canary Islands;||Tax Exempt|
|(b) | the Åland Islands;||Tax Exempt|
|(c) | the Channel Islands( Jersey/Guernsey)||Tax Exempt|
|(d) | the Island of Heligoland;||Tax Exempt|
|(e) | the territory of Büsingen;||Tax Exempt|
|(f) | Ceuta;||Tax Exempt|
|(g) | Melilla;||Tax Exempt|
|(h) | Livigno;||Tax Exempt|
|(i) | Campione d’Italia;||Tax Exempt|
|(j) | the Italian waters of Lake Lugano||Tax Exempt|
|(k) | the French overseas departments;||Tax Exempt|