When selling goods or services online, companies are generally required to charge VAT on the sales made to customers in the countries where the company is registered for VAT purposes. The VAT rate may vary depending on the country where the customer is located, the type of product or service being sold, and other factors.
For sales made through Amazon’s OSS (One Stop Shop) program, Amazon acts as a VAT intermediary between the seller and the customer. This means that Amazon collects and remits the VAT on behalf of the seller, simplifying the VAT registration process for the seller.
To calculate the VAT owed for OSS sales, Amazon would typically use the VAT rate applicable in the country where the customer is located, based on the information provided by the seller. Amazon would then collect the VAT amount from the customer and remit it to the appropriate tax authority.
It’s important to note that VAT rules can be complex and may vary depending on the specific circumstances. If you have questions about VAT or how it applies to your sales on Amazon, it’s always best to consult with a tax professional, like my VAT Direct, or accountant who can provide tailored advice based on your specific situation.
For more information please contact our VAT team on +44 (0) 208-004-1160 in the UK, or ++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.