At “hellotax” we try to make things easier for our clients and try to get them informed about all the issues they might encounter regarding E.U. VAT.
There are 2 types of invoices with different VAT rates. The VAT rates applied are strictly depending on the type of service Amazon provides and also from what country it provides. First type of service is Amazon advertising, which includes selling through their affiliates and the second service is the FBA subscription. These 2 services are charging different VAT rates as they are directly affected by the location of the provided service. Advertising services are provided by Amazon headquarters in Luxembourg and the FBA services are provided by local Amazon branches in the country where the warehouse is located, thus applying that country's related VAT rate.
Under the European Union VAT rules, Amazon will collect EU VAT on monthly subscription fees and on Selling on Amazon fees if you meet specific criteria. If you are already EU VAT registered Amazon will not collect VAT on these fees.
The criteria which triggers Amazon to collect fees is:
- You don’t have an EU VAT number
- You are a resident of an EU country
- You sell on a non-EU website
- You are selling from Luxembourg, the European headquarters of Amazon
Regarding EU VAT collected by Amazon on monthly subscription fees and selling on Amazon fees, an Invoice will be provided by Amazon and it will be emailed to the primary email address of your seller account.
You can also find this invoice in your Seller Central account:
Seller Central ➜ Reports ➜ Tax Document Library ➜ Seller Fee Tax Invoices
Until recently Amazon issued their invoices by Amazon Luxembourg. These invoices were issued with 0%(referencing the Reverse Charge mechanism). Starting with October 2018 PPC services and advertising services provided by Amazon will be invoiced by local Amazon subsidiary like Amazon online GmbH, Amazon online Spain S.L., etc. If you are using advertising services locally, the local VAT rate will be applied. For example if you have a German company and you are selling in Germany and you use Amazon Advertising services for the German marketplace(a PPC campaign), the 19% VAT rate will be applied. You can balance this when you pay the VAT returns.
If you are using amazon advertising services for other marketplaces, the invoice will be addressed to your headquarters country and the 0% VAT rate will be applied, even if you own a VAT number in that country. These still need to be reported in the headquarters country.
FBA and Selling fees
Currently these kind of invoices are issued by Amazon Luxembourg with 0% VAT rate. Lately we have seen cases where these kind of invoices were issued by local Amazon subsidiary, in cases where FBA fees can be correctly assigned to a specific country. In such cases the respective local VAT rate will be applied. Nothing is yet official regarding these invoices.
*unless you are selling from Luxembourg
You can find additional information about this on Amazon's website under this link.