Account Health & Compliance / Country of Selling Policies

VAT solutions

4. VAT solutions …………………………………………………………………………..………… 1

4.1 What is VAT Services on Amazon? …………………………………..………..……... 2
4.2 How do I use VAT Services on Amazon? ……………………………..………..……... 4
4.3 How do I use VAT Services on Amazon to file my taxes? …………..………..……... 13
4.4 VAT solutions from other service providers …………….….….….….….….….……... 30
4.5 FAQs about Amazon’s VAT solutions ………………………………………..………… 31
EU Arc Compliance Policies - Country of Selling Policies

4.1 What is VAT Services on Amazon?

4.1.1 What is VAT Services on Amazon?
VAT Services on Amazon is a Value Added Tax (VAT) compliance solution that allows you to
apply for a tax number offline with the assistance of a tax agent and to file VAT online in Seller
Central. Following the EU tax reform, it is now easier to achieve a one-stop service for tax
number registration + filing + tax payment.

VAT Services on Amazon supports VAT registration and filing in up to seven European countries,
including the United Kingdom, Germany, France, Italy, Spain, Poland, and the Czech Republic.

• If you already have access to Seller Central, click here to register for this service.
• If you don't have access to Seller Central, click here to learn more.

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4.1.2 Benefits and fees of VAT Services on Amazon

• Safe and reliable

• Amazon rigorously screens and manages service providers.

• Amazon oversees and facilitates the entire registration process, s
o you don't have to worry.
• You can pay monthly instead of a large lump sum to maintain go
od cash flow.

• Save time and effort

• Get your tax number as soon as one week to launch quickly in Europe.
• Tax data is automatically generated so you won't need to do additional
manual work.
• VAT Services on Amazon supports a variety of declaration and transaction
types with the one-stop application across platforms.

• Worry-free compliance

• With a high historical compliance rate, tax authorities trust Amazon,

which reduces the risk of an audit affecting your business.
• VAT Services on Amazon automatically captures and checks each
transaction and its accounting results, so that your transactions are
more accurate and fully compliant.
• Register for a UK tax number and get an automatic 120-day grace
period, so that you don’t need to apply again.

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4.2 How do I use VAT Services on Amazon?

Next, we'll show you how to get started with VAT Services on Amazon:

① If you haven't opened a store yet, click here to learn about and get ready for tax
agents and VAT. Account review and tax registration are carried out simultaneously.
② If you already have a store, click here to learn about VAT Services on Amazon or
follow the steps below to sign up now!

• Step 1 — Start from the Seller Central navigation bar

To sign up to use VAT Services on Amazon, go to Seller Central → Reports →
Manage your VAT.

After signing up for VAT Services on Amazon, you can access the VAT Services on
Amazon page any time by going to the Manage your VAT tab.

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• Step 2 — Go to the welcome page

Once you click Manage your VAT, you will see the VAT Services on Amazon welcome
page, where you can learn more about the features and benefits of the service. After
reading about the services, click Start now to move to the next step.

• Step 3 — Confirm your business information

You'll need to confirm some information about your business on this page, including
your business type, name, and the country of establishment.
• If no changes are required, click Confirm to proceed to the next step;
• If you need to make changes, click Edit to update your information.

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• Step 4 — Select countries where you need tax services

If you already have a VAT number somewhere, you can add it by clicking Add an
existing VAT number. You can exclude any country shown using the Remove button
or add the countries you want to register for VAT by clicking Add country. If you
want to know about charges, you can read more by clicking VAT Services on Amazon
Fees.

• Step 5 — Choose your tax agent (more agents are continually added)

You'll see the tax agent assigned to you by the system, and if you want to change
your tax partner, click ‘click here.’ Carefully read the VAT Services on Amazon terms
and conditions again and click Agree and continue to complete this step.

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• Step 6 — Start VAT registration

1. You'll be taken to the Status Dashboard where you can view your subscription
status for each country. You can find your current tax agent with contact details
at the top of the page. Contact your tax agent with any questions.

Tax Agent A

2. Provide your business information and upload documents for verification.

Provide your business information in the online form, including the contact
person for your business, company information, accounting information, and
country. You will need to enter all required information in this form. This process
takes about 5 to 10 minutes, with helpful prompts if you need them.

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At the end of the form, you'll be able to check all the information you've provided.

Note: Ensure that all the

information you provide in
the online form matches
the information in your
company documents.

3. Collect and upload documents for verification — Once you've finished with
business information, click the Start button next to Documents. You'll be taken to
the page to collect and upload documents for verification, where you can obtain
the required documents upon request and upload a scan of the original by clicking
the Upload button next to each requested document.

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• Important

1. If an error occurs, you'll see an error notification on the Status Dashboard. Click
Fix errors to read a description of the error and the actions you need to take to
resolve it. You'll also receive an email notification and see a description of the
error in Seller Central.

2. Once your business information and all documents have been verified and there
are no errors or missing documents, you can proceed to the next step.

3. Download, sign, and mail paper documents — Once Amazon has verified your
business information and all documents, click the Start button next to Sign form
to go the page for signing your form. Complete the following steps to proceed:

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a) Download, print, and sign the application form.

b) Uploading electronic files — After signing, upload these documents under

Upload electronic documents.

c) Prepare the required documents to be sent by mail — Prepare copies of all

the originals requested and add the documents you printed and signed in
step a, as well as the official copies you have obtained from the relevant
agency.

4. Get your VAT number(s)

Congratulations on receiving your VAT number(s)! Once Amazon has received

your VAT number and tax certificate, it will be added to your Seller Central
account. You'll also receive an email with details on how to begin filing VAT
returns using VAT Services on Amazon. You can download your VAT registration
certificate from the Status Dashboard and click View your VAT filing information
to begin filing. Your VAT number will automatically be uploaded to your Tax
Settings page.

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4.3 How do I start using VAT Services on

Amazon to file my taxes?
4.3.1 What is a VAT return?
VAT filing is the process of preparing and submitting reports to tax authorities to provide them
with information of your transactions in the relevant period and the amount of VAT to be paid.

4.3.2 Types of VAT filing

Generally, you can file three types of VAT reports with VAT Services on Amazon:

VAT returns
Tax authorities use the VAT returns to calculate your VAT liability
for a VAT accounting period. A VAT return includes:
• information on the VAT collected from customers in a period,
• VAT paid to suppliers in a period,
• cross-border sales,
• cross-border acquisitions, and
• imports and exports.

EC Listings (ECSL/ECPL)
ECSL/ECPL is a declaration of the transfer your goods
between EU member states. If your goods are transferred
between fulfillment centers in an EU member state, you
must declare your transfer.

Intrastat
Intrastat is a declaration of your transfer or B2B trade
between EU member states. You need to declare Intrastat
when the value of your ECSL/ECPL transfers or B2B sales
exceed a certain cumulative threshold in a calendar year.
The specific threshold varies from country to country.

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In addition to the three returns above, there are also special reporting requirements in some
states. For example, some may require submission of additional reports. These reports are
usually used to further collect information of business transactions for statistical purposes.

Note: VAT reports are usually filed on a monthly, quarterly, or yearly basis, depending on the
country and report type.

4.3.3 Note the following before using the filing service:

• If you already have a VAT number for the reporting country, you can start using the
online filing service.

• If you don't have a VAT number for your reporting country, you can transfer to a tax
agent or directly use VAT Services on Amazon to apply for a tax number, regardless
of whether you have another agent. You can then use the online filing service after
obtaining your tax number.

Refer to the VAT Filing Handbook to learn more about the VAT filing and the tax agent
transfer process with VAT Services on Amazon.

4.3.4 Steps to file your VAT

• One-time setup
• After you have used VAT Services on Amazon to complete VAT registration or
transfer to a tax agent, click Reports → File your VAT.

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• Review and confirm your set-up and click Finish settings.

• VAT filing processes and timeline on VAT Services on Amazon

Below are the five steps and their descriptions for tax filing on VAT Services on Amazon.

Step Process Operations required Start time End time

Early stage
23:59 CET,
(7th day of previous
1 Review product tax file - 7th of
month to 7th of this
every month
month)
Review Amazon VAT 10:00 CET, 23:59 CET,
2 Transactions Report 4th of 7th of
(you can’t modify) every month every month
Review Additional VAT Report,
Reporting period 10:00 CET, 23:59 CET,
add non-Amazon transactions
3 (4th to 7th of every 4th of 7th of
or import VAT deductions
month) every month every month
(review and modify as needed)
23:59 CET,
4 Review filing documents - 7th of
every month
After filing Once payment
Payment Payment due
5 (7th to 11th of every information
(mandatory) date
month) is generated

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• Steps to file using VAT Services on Amazon

Review product tax file used to prepare the

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Amazon VAT Transactions Report

• What is a product tax file?

A product tax file is a template populated with information you have previously
provided to list products on Amazon EU stores. This information is required to
complete your VAT filings. In particular, it includes the physical movements of your
goods throughout the EU.

• What does the product tax file contain?

The product tax file contains the details of any of your products that has been sold,
refunded, or returned in any of your VAT Services on Amazon filing countries within
the past three months.
The information in the product tax file has been pre-populated by VAT Services on
Amazon based on information that you have previously provided, so you only need
to review the information and update it if necessary. It is your responsibility to
ensure that the information is correct. Below is the information required for each
product in the product tax file:

• ASIN, seller SKU, and product title

• Cost and item price on Amazon

• Place manufactured

• Commodity code used to classify goods for import and export

• Other required information

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• Why aren't all of my products in the product tax file?

To make your product tax file as simple as possible, VAT Services on Amazon
only populates the details of any of your products that has been sold, refunded,
or returned in any of your VAT Services on Amazon filing countries within the
past three months. This is to ensure that you are only reviewing the information
for those products that your tax filing countries require.

• How do I make changes to my product tax file?

Step 1 — Log in to Seller Central → Product Tax File to download your pre-
populated product tax file.
Step 2 — Review the product tax file and update with the latest information if
you need to make any changes.
Step 3 — Save the product tax file as a Unicode text file.
Step 4 — Click Upload to complete your updated product tax file.

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Download and review your Amazon VAT

2
Transactions Report

• What does the Amazon VAT Transactions Report contain?

The Amazon VAT Transactions Report contains relevant information for VAT on
transactions that occur in VAT Services on Amazon-subscribed countries. It
includes details such as, buyer shipments, buyer returns, buyer refunds,
fulfillment center transfers, and inbound inventory movements on Amazon
Fulfillment Network (AFN) and Merchant Fulfilled Network (MFN) channels:
• Sale
All transactions in which a buyer purchases goods from you (only if you’ve
activated the VAT calculation service (VCS) would the Amazon VAT
Transactions Report include your sales transactions; see below for details).
• Return
All transactions in which a buyer returns goods to you and there is a
product movement.
• Refund
All transactions in which you issue a refund to a buyer and there is no
product movement (only if you’ve activated the VAT calculation service
(VCS) would the Amazon VAT Transactions Report include your sales
transactions; see below for details).
• FC transfer
All movements of your inventory between Amazon fulfillment centers.
• Inbound
All movements of your inventory to an Amazon fulfillment center.

Tip:
• If a refund is issued and the goods are physically returned to an Amazon
fulfillment center, all relevant transactions will be automatically reported
in your Amazon VAT Transactions Report. You don’t need to report these
separately.

• Multi-Channel Fulfillment (MCF) transactions are not included in this report

and must be added as non-Amazon transactions in your Additional VAT
report.

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• What if I disagree with data in the report?

This report is automatically generated by the system with the data provided in
the product tax file, as well as any other relevant transactions. If you have any
concerns about Amazon VAT transactions, please contact Amazon Seller
Support.

If you have Amazon sales or refunds in your Amazon VAT Transactions report,
you will be unable to make changes to the VAT calculations. This is because VAT
invoices have been raised for these Amazon sales and refunds and it is important
for VAT purposes that the VAT declared on your VAT filings matches the VAT
declared on your invoices.

However, you can make changes to some product information (such as product
weight and product ID) in the Amazon VAT Transactions Report by updating
your product tax file and regenerating your VAT filings. Refer to the Product tax
file help page for more information.

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• What is the VAT Calculation Service (VCS)? How do I activate this service?

With the help of the VAT Calculation Service, you can show the VAT-free price
and VAT invoice that Amazon Business buyers expect to see. By sharing your
VAT information and other tax configuration preferences with Amazon, VCS
can calculate the applicable VAT based on all orders on Amazon European
marketplaces and issue electronic VAT invoices. You can also get a detailed
VAT report to fulfill your declaration obligations.

Enroll and activate VAT Calculation Service here. For more information, visit
the VAT Calculation Service help page.

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Download and view your Additional VAT Report (including

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non-Amazon transactions and import VAT)

• What does the Additional VAT report include?

The Additional VAT Report contains information about all the cross-border
movements, purchases, or imports within the EU associated with your non-
Amazon sales, refunds, returns, credits, and goods. If you have not activated
Amazon's VAT Calculation Service (VCS), it may also include your Amazon sales
and refund transactions that have not been calculated. Moreover, Amazon VCS
may not calculate the VAT of some transactions, for which you need to provide
missing information.

• How does VAT Services on Amazon calculate the VAT due of transactions in
Additional VAT Report?

Your Additional VAT Report has been populated with the details of your Amazon
sale and refund transactions because the VAT information for these transactions,
including the VAT rate and VAT amount, has been calculated by VAT Services on
Amazon's VAT calculation tool.

It is important that you review the details of these transactions to ensure that
the VAT information is accurate and matches the VAT invoices and credit notes
that you have issued for these transactions.

• I use the VAT Calculation Service, so why do I still find sales and refund
transactions in this report?

If you use Amazon’s VAT Calculation Service, the Additional VAT Report may
contain information of some Amazon transactions that lack certain information
to ensure the information is correctly provided in your VAT returns.

You should review the details of these Amazon transactions to ensure that they
are correct, and also use the report to provide the details of any off-Amazon
transactions, including sales, refunds, returns, credits, EU cross-border stock
movements, and purchases.

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• How do I make changes to the Additional VAT Report?

Click Additional VAT Report to download the report and update it with
information of your transactions in the previous month. Then click Upload to
upload the updated report to Amazon Seller Central. As you fix the errors or
click the Exclude error transactions button, Amazon exclude these transactions
from the report.

Tip:
The report cannot be modified after the 7th of each month.

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You can refer to the worksheet template below to fill in the import VAT. After
any modification to this sheet, you need to click Validate template to check
whether the format is correct, and then click Save as Unicode text file to save
and then upload it.

• What should I do if I forget to provide data during the reporting period?

During the preparation period, you can change your VAT filings by modifying or
adding transactions in your Additional VAT Report. Once you miss the deadline,
you will not be able to make any changes to your VAT filings via VAT Services on
Amazon.

If you forgot to provide data before the deadline for declaration, please contact
the Seller Support team for further options.

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4 View generated filings

• How do I view filings?

Once you have reviewed the Amazon VAT Transactions Report and the
Additional VAT Report, you should click View filings to view the filings they
generated. On this page, you can find the summary of the VAT amount for each
country as well as the status and deadline of each filing.

You can also view a complete file by clicking Download all filings, which
downloads a compressed file containing all your filings in pdf or txt format.

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If you click on Past Filings, you can view previous filings and pay the taxes due
in them.

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5 VAT payment

• Payment process and deadlines

As the filings are generated, you can click VAT payment instructions for
instructions and log in to VAT Services on Amazon to view the amount of VAT
payable in each country and the payment deadline.

Tip:
• For all VAT payments to the authorities, ensure that you provide the
correct reference number during transfer as described in the payment
instructions.
• You must ensure your VAT payment reaches the tax authority before the
deadline.

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The table below sets out the VAT return deadlines for each country. These deadlines
might change each month, and you must always use the payment deadline and
payment instructions prepared by your tax agent, available on the VAT Services on
Amazon page, in order to make your VAT payments.

Country Deadline for payment

Germany The 10th of the month following the end of the VAT filing period

United Kingdom The 31st of the month following the end of the VAT filing period

Czech Republic The 25th of the month following the end of the VAT filing period

• Penalties for late VAT payments

The following table contains details of the general range of penalties levied by the
tax authorities for late VAT payments. The application of penalties in case of
infractions can be a complex and subjective legal matter, and higher penalties can
apply under certain circumstances.

Country Reason for penalty Penalty

United Kingdom Late VAT payment 0% to 15% of the VAT liability

Germany Late VAT payment 1% of unpaid VAT for each month

Czech Republic Late VAT payment Interest on the payment due

Note: The above information is for reference 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.

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6 Filing past VAT obligations (retroactive filings)

• What is a retroactive filing?

When your VAT registration number is issued in a country, you may have some
VAT returns that are due for periods before you submitted your first VAT filing
with VAT Services on Amazon. There are usually two reasons for this:

1. You had an obligation to register for VAT in the country from a date
before you submitted your VAT registration application, for example
because you had been storing inventory in that country.

2. There may be a period between when you submit your VAT registration
application and when you receive your VAT registration number from the
tax authorities and submit your first VAT filing.

Tip:
• In both cases, you are required to submit VAT filings for these past VAT
obligations, and from the earliest date up until you filed your first
periodical VAT filings on VAT Services on Amazon. If you have no
transactions to report for past periods, tax authorities may still require
submission of nil filings.

• Failure to make payment of the VAT liability may lead to additional

penalties or late payment interest. You must file your retroactive returns
and pay the corresponding VAT liability as soon as possible.

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• How can I request to submit my retroactive returns?

1. If you registered for the VAT identification number through VAT Services
on Amazon and you are starting to file VAT via Seller Central for the first
time, you can file retroactive returns via Seller Central.

Go to the Submission of your past VAT obligations page under File your VAT
and select to file retroactive returns.

2. If you are not yet set up to start VAT filing, you will not have access to the
page yet. Wait until your tax agent has completed your onboarding for
VAT filing.

Your tax agent will not be able to generate and submit any retroactive
returns until they have completed the onboarding for VAT filing for the
country. The Submission of your past VAT obligations page will be available
once your tax agent has completed your onboarding for VAT filing, and you
will receive an email notification.

3. If you are set up to start filing or are filing already on Seller Central, but
do not have access to the Submission of your past VAT obligations page,
or the country you are looking for is not available on the page, you can file
retroactive returns with your tax agent outside Seller Central.

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4.4 VAT solutions by other service providers

Click here to contact other third-party service providers through the Amazon Service Provider
Network (SPN) and learn more about VAT. Select 'Where do you want to sell?' to find local third-
party service providers that provide tax services.

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4.5 FAQs about Amazon’s VAT solutions

I selected only one country at first. Can I add more later?

Yes, just ask your tax agent for help. VAT Services on
Amazon provides Sellers with a flexible combination
of services. However, in order to shorten your the time
needed for your tax number application, we
recommend that you check all the countries you need
during initial registration.

I have already registered for a UK or German tax

number. Can I still use VAT Services on Amazon?

Yes, you can still use VAT Services on Amazon to

register the tax number of other European countries.
Or you may also transfer your existing tax numbers to
VAT Services on Amazon to handle filings.

Do I need to communicate with Amazon email myself?

The tax agent will contact you and help complete the
tax number registration process.

When can I start filing online?

Please keep an eye on the case notification and filing

page (Seller Central → Reports→> VAT filings), and
transfer to online filings as soon as possible.

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