VAT on Amazon fees to Sellers

If you are a VAT-registered EU seller you must provide your VAT number to Amazon in order for Amazon to “zero-rate” its listing or referral fee in the case of the supply of a cross-border service.  So, assuming Amazon SARL is VAT-registered in Luxembourg and your business is established in the UK, unless you register and supply your UK VAT number, Amazon will charge you UK VAT which you will not be able to recover.  As the UK VAT rate is 20{e68217344b855fcd608ed2c4c41f83644da7cd41ea524fbfa2ad06c632d3255d}, Amazon’s service will cost you 20{e68217344b855fcd608ed2c4c41f83644da7cd41ea524fbfa2ad06c632d3255d} more than it would to a VAT-registered UK competitor.

From 1 January 2015 the VATMOSS legislation was introduced throughout the EU under which VAT on “electronically delivered services” is charged based on where the “customer” (you) rather than the “supplier” (Amazon) is located.

You should read the other articles on our website about the VAT liability of the goods you are selling on Amazon. Different VAT rules apply to the sale of goods than to the provision of services.