Sellers aren’t always required to register for VAT in the destination EU country.
By May 2022 Amazon plans to have its European Fulfilment Network (EFN) fully reopened between the UK and the EU. This is good news for UK sellers who wish to sell their UK stored products into Germany, France, Italy and Spain without the need to be VAT registered in the above mentioned destination countries.
There are some eligibility restrictions including the price of an eligible product must not exceed £122 in the UK or €135 in the EU.
For Business-to-Consumer sales that don’t exceed €150/£135, Amazon must account for VAT which the customer pays at checkout. For sales above €150/£135 and all Business-to-Business sales the customer is the importer of record and pays any import VAT and duties, Amazon will collect an estimate of the import fees from the customer at checkout to remit these amounts on the customer’s behalf.
If you have additional questions about Amazon’s EFN and your VAT obligations, please contact our VAT experts on +44 (0) 208-004-1160 in the UK, ++1 (714) 782-7000 in the USA or email us at query@MyVATdirect.com.
About My VAT Direct Ltd
My VAT Direct is a bespoke VAT registration, fiscal representation, calculation and filing service specifically designed to assist Amazon Sellers and e-commerce merchants who desire the benefits of cross-market selling without the worry of tax compliance in foreign markets.
My VAT Direct is comprised of knowledgeable and experienced tax experts, who for 10+ years have helped e-commerce sellers enjoy the selling opportunities a mass market can provide.
About SMBE Direct Ltd
My VAT Direct is a subsidiary of SMBE Direct, a world reaching B2B and B2C business services conglomerate, giving rise to exceptionally talented and well-experienced professionals organised into business units, that provide direct services to SMEs and enterprise level businesses, whereby increasing their brand awareness and sales.