Amazon has detailed guidance on the general overview for sellers established both inside and outside the EU. They also suggest steps that sellers can take to prepare.
These links can be found HERE. You must be logged in to Amazon Seller Central to view these articles. Please find a summary of this information below.
General Overview - Sellers Established Outside the EU
From July 1st, 2021, Amazon will collect VAT on sales of goods that are delivered to B2C customers in the EU and ordered through any Amazon store, where:
Goods are delivered from inventory stored outside the EU in a shipment with an intrinsic value of up to EUR 150
Goods of any value are delivered from inventory stored in the EU where the selling partner is not established in the EU.
Where either of these supplies takes place, Amazon will calculate and collect the VAT from the customer and remit this directly to the tax authorities.
The seller will not receive the EU VAT amount in their disbursements and the seller will not be required to report/remit the VAT to the EU Tax Authorities.
The VAT rate used will be the VAT rate of the country of delivery (where the customer is located).
For example, if goods are delivered to a customer at an address in France then Amazon will use the French VAT rate.
Amazon will not collect VAT on the sale or delivery of goods to VAT-registered customers in the EU.
The seller will still be required to meet VAT registration requirements in any EU countries where they hold stock.
The old VAT exemption for sales of goods under EUR 22, where goods are delivered from outside the EU, has been abolished. Instead, the VAT rate of the destination country will be used for these sales.
General Overview - Sellers Established Inside the EU
Distance selling thresholds are removed from July 1st, 2021. They will be replaced by the general tax at destination principle for all B2C e-commerce supplies of goods. VAT will be due in the destination EU country.
Due to this new principle, a seller may need to obtain a VAT registration number in each EU member state where they perform B2C distance sales.
Alternatively, in some circumstances, the seller can opt to use the VAT One Stop Shop. This does not apply if the seller holds stock in other EU countries.
Amazon has provided resources with information on how to register for OSS in each EU country. These can be found HERE if you are logged into Seller Central.
If a seller does not exceed a cross EU threshold on sales of EUR 10,000, they may qualify for the micro-business exemption.
Amazon will collect and remit VAT if the seller ships inventory from outside of the EU to customers in the EU, for shipments that have an intrinsic value of up to EUR 150.
How to Prepare - Sellers Established Outside the EU
Review your Amazon Seller Central account details including business address, shipping address, and up to date VAT registration information
Review list prices to ensure they are inclusive of VAT
Review and update your VAT invoicing and reporting details
Check and confirm your VAT registration obligations in the EU (especially if you are storing inventory in EU countries)
How to Prepare - Sellers Established Inside the EU
Review your Amazon Seller Central account details including business address, shipping address, and up to date VAT registration information
Consider registering for the Union One-Stop-Shop (OSS)
Be aware that fulfilling orders to EU customers from inventory stored outside the EU may trigger additional VAT obligations and preparations under the Import One Stop Shop (IOSS)
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