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Advanced VAT settings for Amazon Sellers
Advanced VAT settings for Amazon Sellers

Customize your VAT calculations for more complex VAT scenarios

Ashley Schroder avatar
Written by Ashley Schroder
Updated over a week ago

This article will cover how the custom VAT settings in A2X will allow sellers to override Amazon's VAT calculation or replace it if VAT Calculation Service (VCS) is disabled.

These settings are for advanced and/or complex VAT situations, if you are using these settings it is important you have discussed your VAT scenario with your tax adviser.

When to use custom VAT settings

There are two primary situations where sellers may want to use these settings:

  1. Amazon is not calculating any VAT at all (VCS is disabled) but the sellers is operating from multiple countries (such as Pan-EU).

  2. Amazon VCS is enabled, but the seller is using a different VAT calculation method to Amazon and wishes to override Amazon's taxable jurisdiction.

In both scenarios A2X will not use Amazon's "jurisdiction" value and instead base the jurisdiction on the departure and arrival country for the order. The departure country will be the jurisdiction except where the arrival country is in the list of arrival VAT countries.

How to use custom VAT settings

You need to click the link 'customize' to view the advanced VAT options panel:

That will then give you two options: to override Amazon's VAT calculation and if overriding, which arrival countries to use for jurisdiction.

To use the advanced settings you need to enable the VAT override. Once enabled you can enter Arrival VAT countries.

Arrival VAT countries are those countries where you wish to use the shipped-to country, not the shipped-from country when determining VAT jurisdiction. A reason this might be useful would be if you are not using Amazon's default "opting to tax" calculation and are factoring in distance selling thresholds in some countries.

These settings are for advanced VAT users and it's highly recommended sellers seek professional advice before using the VAT override.

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