Learn about the added VAT compliance complexity when selling with FBA and how we can help solve those challenges.
Are you an Amazon seller venturing into the European market or a business that is just getting started with Amazon FBA, but the complexities of Amazon Seller VAT (Value Added Tax) obligations are leaving you perplexed? With so many fulfillment options offered by Amazon to choose from like FBM, FBA, EFN, Pan European FBA, COS, MCF, it is hard enough to make sense of each setup even before you factor in the VAT implications, which vary greatly between these options.
SimpleVAT can help you navigate the complex world of EU VAT for Amazon Sellers by not only offering an end -to-end VAT compliance solution including Amazon VAT registration, but also guiding you in choosing a suitable fulfillment option for your business, that will not break the bank with ridiculous Amazon fees, unneeded VAT registrations, overpaying or double paying VAT tax, and will help steer you clear of hefty VAT compliance penalties.
There is a simple rule that you need to follow to get an idea about the VAT requirements for Amazon FBA sellers in the EU - you need to register for VAT in each country, where you keep stock. Amazon has FBA warehouses (or Amazon Fulfillment Centers), in 8 EU countries – Germany, France, Italy, Spain, Poland, Czech Republic, Sweden and the Netherlands. You can opt to keep stock in just one country (EFN), in multiple countries (MCI), or go all in with Amazon’s Pan European program, which means you will potentially keep stock in all 8 countries.
The choice between these fulfillment programs boils down to striking a balance between the desirable effects of having stock as close to the customer as possible, and the cost associated with Amazon FBA VAT compliance obligations that go along with it. Amazon VAT Services can be costly and this will be an ongoing expense for your business.
Sellers who have a lot of stock and have a high turnover, or plan on doing so, can opt for the Pan European program which entails 6 VAT registrations and ongoing VAT filing, whereas sellers with less products, lower volume of stock and sales, should opt for the European Fulfillment Network (EFN), which only requires one VAT registration and filing in one country. The difference in the cost of VAT compliance is substantial between the two options described above. We can help you choose the appropriate fulfillment program, and offer VAT registration and filing in one or multiple countries. For more information, please refer to our Pricing page.
With Call-off Stock, a legislative simplification for VAT in the EU, you can reduce the number of VAT registrations needed to just one for all four of these countries - Germany, France, Italy, Spain. For Pan European FBA, you will still need VAT registration numbers in Poland and the Czech Republic. COS can be a useful tool in certain scenarios, but it comes with its drawbacks too.
For full VAT compliance, VAT registrations in the countries where you keep stock are not all that’s needed. In addition to reporting local VAT for sales that happen within the countries where you are VAT registered, you will also need to report cross-border sales like for example when a customer from the Netherlands purchases a product which is fulfilled from the German FBA warehouse, where you keep stock.
an EU-wide OSS registration in the country of establishment of your business. Even if you're not established or represented in the EU, we facilitate hassle-free registration for the VAT OSS/IOSS, ensuring compliance with cross-border sales.
Local VAT registrations in each country where you keep stock. Gain access to all EU countries with our expert assistance in VAT registrations tailored for Amazon FBA sellers.
an EU-wide OSS registration in the country of establishment of your business. Even if you're not established or represented in the EU, we facilitate hassle-free registration for the VAT OSS/IOSS, ensuring compliance with cross-border sales.
Stay ahead of your VAT responsibilities with our filing services, designed for sellers managing sales not only on Amazon but across various marketplaces and platforms. Regular filing of VAT returns in each country where you have a VAT number, and OSS filing.
Navigating VAT complexities is made easy through our meticulous process, backed by a team of seasoned experts of Amazon accountants and VAT specialists, and automated by cutting-edge software solutions:
Rely on our team of experienced Amazon accountants with a wealth of knowledge in VAT registrations across all EU countries. Note that registrations can be a lengthy process taking 4-8 weeks and plan ahead for your FBA expansion in Europe.
Benefit from our software solution, seamlessly integrated with APIs across your marketplaces and sales channels, ensuring accurate data for OSS VAT returns. This allows you to automate your invoicing and OSS reports, so that you free up time to focus on business growth instead.
| Amazon VAT Services | SimpleVAT | |
|---|---|---|
| VAT registration | In top 7 markets (DE, FR, IT, ES, CZ, PL, GB) | In all 27 EU member states |
| VAT filing | yes | yes |
| EORI number | yes | yes |
| Fiscal representation | yes | yes |
| Intrastat reporting (if applicable) | yes | yes |
| EC Sales List (ECSL) | yes | yes |
| OSS/IOSS registration and filing | no | yes |
| Who provides the service | Third parties | We do |
| Support | Through Amazon Seller Central | Direct account manager |
| Tax advisory | Not offered | Free |
We understand that the journey into VAT compliance can be daunting. That's why SimpleVAT offers free consultations to Amazon FBA sellers. Take the first step toward VAT clarity and seamless compliance by reaching out to our experts. We're here to guide you through the intricacies and provide tailored solutions for your business.
