Many jurisdictions have enacted ‘remote services’ tax rules, which require non-resident service providers (like Amazon) to charge, collect and remit value added taxes (‘VAT’) which includes VAT, GST, consumption tax and other similar transaction taxes from their customers (like Selling Partners on Amazon online stores). In most countries, the services in scope for taxation are referred to as ‘Electronically Supplied Services’ (‘ESS’), although the scope varies by country and in some cases includes almost all services provided by a remote supplier.
ESS is generally defined as any service which are classified as following:
In most jurisdictions, listing fees, such as Selling on Amazon (‘SoA’), and advertising fees, such as Amazon Sponsored Advertising (‘advertising’) fall within the definition of remote services and ESS tax rules. Fulfilment by Amazon (‘FBA’) and related fees generally fall outside of the scope of such rules.
If the following conditions are true, then Amazon may be required to charge you VAT on your SoA and advertising fees:
Most jurisdictions that tax remote services do not require non-resident service providers to charge VAT to business customers. To support this treatment, the recipient of the service typically must provide its VAT or Tax ID to the service provider.The chart below shows jurisdictions where Amazon charges tax on the remote sale of services as required under local law. It also shows whether the provision of a VAT or Tax ID impacts taxability. Note that tax rules can change frequently and the information below may become outdated. This information is provided for reference only and should not be relied upon. If you have questions, consult with your Tax Advisor.
|Your Business Location||If I provide my Tax ID, will my fees be taxed?||If I DO NOT provide my Tax ID, will my fees be taxed?|
|Non-EU Countries in Europe|
|Canary Islands (IC)||No||Yes|
|Switzerland (CH) & Busingen & Liechtenstein (LI)||Yes||Yes|
|United Kingdom (GB)||No||Yes|
|India||No||Yes (advertising only)|
|Japan (JP)||N/A*||Yes (SoA only)|
|Saudi Arabia (SA)||No||Yes|
Yes (SoA only)
Note that new rules take effect from 1 January, 2022, that will bring ads services in-scope of ESS rules.
|South Korea (KR)||No||Yes|
|United Arab Emirates (UAE)||No||Yes|
|South Africa (ZA)||Yes||Yes|
|New Zealand (NZ)||No||Yes|
|British Columbia (CA-BC)||Yes||Yes|
|Saskatchewan (CA – SK)||Yes||Yes|
|Costa Rica (CR)||Yes||Yes|
|Mexico (MX)||Yes (SoA only)||Yes (SoA only)|
|Colombia (CO)||No||Yes (advertising only)|
Amazon uses the details you provide in your Seller Central account to determine the location of you and/or your business. Relevant account details include, but are not limited to:
To ensure that you are taxed correctly, you must keep your account details accurate and up to date. Failure to do so may result in incorrect tax calculations and additional costs to you or your business.
Account information mentioned above can be updated by navigating to Settings > Account Info.
The address you provide as your Business Address must represent your primary place of business where you receive services from Amazon. Typically, your business address is where you have registered your business and where its management is located. For non-business sellers, this represents your usual place of residence.
Amazon may perform identity checks to confirm your business belongs at and operates from this address.
At a minimum, you should provide your Tax ID or VAT registration number issued in the same country as your business address. Failure to provide this Tax ID or VAT registration number may result in incorrect tax charges.
Note: You may also provide other VAT registration numbers belonging to your business in countries outside of your business address country.
The default shipping address you provide must represent the main address from which you self-fulfil orders. Note that this address may be used by Amazon to determine the originating jurisdiction for your sales.
Your return address is the main address you use to accept returns from your customers.
Invoicing requirements for taxable sales of remote services vary by jurisdiction. Amazon will supply an invoice when legally required to do so.
To view tax invoices, go to Seller Central > Reports > Tax Document Library > Seller Fee Tax Invoices.
Regardless of whether Amazon issues an invoice or not, you may review VAT charges in date range reports. You can view these reports by going to Seller Central > Reports > Payments > Date Range Reports > and selecting a transactional report for a particular time frame.
The process of obtaining a Tax ID or VAT ID varies by jurisdiction. For more information, consult the relevant tax authority website or your Tax Advisor. If your country does not have VAT or does not tax remote services, you may still provide your VAT or other Tax ID in your Seller Central account.
As described above, Amazon calculates VAT on your fees based on the business information you have supplied.
If you believe you were incorrectly charged, you may request a refund for previously-charged VAT.To enquire if a refund is available:
While Amazon is committed to helping our sellers, we do not provide tax advisory or compliance services. Contact your Tax Advisor if you have any questions about taxes or need assistance with your tax returns. Amazon maintains a list of third-party tax advisors as a resource for sellers. Amazon does not endorse the services of any tax advisor.