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VAT for Pan EU Amazon Sellers
VAT for Pan EU Amazon Sellers

More VAT information for Amazon sellers using Amazon's Pan-EU program

Iona Bird avatar
Written by Iona Bird
Updated over a week ago


Disclaimer
: you should get tax advice from your accountant or tax adviser, these instructions are for technical configuration of A2X.

Amazon offers the Pan EU FBA program to place your stock in multiple EU countries. This is fantastic for customers as they can receive orders much more quickly in those countries, and it can boost your sales growth in the EU. 

By having stock in the EU countries and fulfilment operations, you will need to be VAT registered - a fact Amazon includes in their FAQ.

Cloud accounting systems like QuickBooks Online and Xero aren't equipped to handle multi-country VAT returns (yet). As the process is complex, it would generally requirie specific country tax experts to review and prepare each return that complies with the local laws.

A2X can use the Amazon VAT data to help with your local VAT return and maintain accurate VAT information in your accounting system for other international VAT returns.

For an overview of VAT handling for Amazon sellers in UK and Europe please see this guide.

To enable VAT jurisdiction tracking in A2X you need to be using the Amazon VAT calculation service (VCS). You can enable the setting and specify all of your VAT registrations in the A2X Settings > VAT page as shown below.

Once enabled you will see the jurisdiction for all your Amazon sales in each marketplace and can account for the VAT in each as required by your accountant or tax adviser to ensure an accurate VAT return in your accounting system and an accurate record of the VAT collected by Amazon in each country.

Additionally, VAT jurisdiction tracking will also account for sales exported from the EU and for sales made to other businesses in the EU (B2B sales). You can find out more about the different types of VAT transactions you will see when this setting is enabled.

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