Update to Amazon UK and EU agreements and VAT treatment
Effective August 1, 2024, Selling on Amazon, Fulfilment by Amazon, and all other services currently supplied by Amazon Services Europe S.à r.l. (ASE) will be supplied by Amazon EU S.à r.l. (AEU). All agreements, policies, terms and conditions currently referring to ASE, including Amazon Payments agreements, will be updated to AEU. Additionally, all invoices issued by Amazon will be issued by AEU instead of ASE after August 1, 2024.
If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment. As a result, local VAT rules apply and and VAT will be charged on your Amazon fees. In the majority of cases, we expect that you will be able to recover this VAT through your normal VAT return process.
We recommend that you contact your tax advisor for more information on recovering VAT as per your country of establishment's local regulations.
If your company is not established in the countries listed above, you will be invoiced by the AEU head office in Luxembourg, and there will be no change to how VAT is applied on Amazon fees.
Note: This change doesn't impact your account access, listings, product pricing, customer reviews, selling services or the price of services.
For more information, go to Update to Amazon UK and EU seller services entity and VAT treatment.
Seller_i38MVIJDH23AY
I finally got a reply from Amazon VAT services.
I asked what the process would be for claiming this VAT charge back when using Amazon VAT services.
Amazon said they do not support this. They actually said "In principle, you should not have any purchases of services with input VAT charged which relate to your VAT Services on Amazon subscribed countries."
I have written back to tell them I will only have costs outside the UK because Amazon have made this change.
I doubt they will reply.
Seller_yDWFiMveDz7wA
Does this apply to both FBM and FBA? We are only FBM.
Seller_Y8La8aTSXSAbw
Has anyone seen Amazon's reasoning for this change?
Seller_kZYbqQ7EigRdq
I am VAT exempt, but since I have not provided my UK VAT registration number, I will also be charged Amazon fees from 1 August ?
Seller_tRuvBEHDedp4q
Just doing my accounts for May and adding in Tax Invoices from Amazon to discover I have 2 invoices from Amazon for seller fees in May
One from the usual Amazon Luxembourg (reverse charged VAT) covering 1st to 29th May, - but the other for fees on 30th May invoiced from Amazon GB with VAT added.
Makes no difference to me (apart from cashflow) as I can claim the VAT back on the second invoice - but I thought the change was coming into effect as from 1st August?? Seems Amazon have already started on the changeover.
Has anyone else noticed this?
Oh and also just noticed VAT amount is not correct - Amazon have said fees for 30th May were £33.48 and VAT is £6.72
VAT @20% on £33.48 is £6.70 - OK so its only 2p difference but its my 2p and not Amazons. Now if Amazon are charging me an extra 2p in VAT are they sending this extra 2p to HMRC or will they be telling HMRC that they owe £6.70 and keeping the 2p for themselves??
Seller_mCom45RCB261x
”If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment. As a result, local VAT rules apply and and VAT will be charged on your Amazon fees. In the majority of cases, we expect that you will be able to recover this VAT through your normal VAT return process.”
I am a UK company that is amazon exempt an NOT VAT registered, I have been paying VAT on fees since september, should I have been paying VAT on amazon FBA and sellers fees?
Any help appreciated
Seller_XJW948XQxw3t7
will the VAT charged (and deducted from disbursements) be summarized on the payments reports page, so we can see exactly what the fees were on each disbursement, rather than month by month?
