Under Amazon MCI sellers can choose the countries into which they ship and store their inventory, and fulfill orders from any Amazon’s European marketplace. Sellers will have to charge the VAT of the country the goods are held in and orders are despatched so a local VAT registration will be required.
For customers on marketplaces for which sellers do not store their inventory locally, Amazon offers cross-border delivery of their products. This may trigger VAT distance selling issues so the distance selling thresholds of the relevant EU member states will need to be kept in review.
There may be member states where some products are held locally with an existing VAT registration but other products are delivered “cross-border”. The VAT situation becomes complicated.
RKG Consulting, Chartered Tax Advisers will be pleased to advise sellers on all aspects of Amazon FBA VAT compliance.