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EU e-commerce VAT changes
from July 1, 2021 |
What you need to know |
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Hello, |
We thank you for selling on Amazon. On July 1, 2021, the 27 countries of the European Union will implement new VAT rules on e-commerce sales which will affect your sales of goods to EU consumers through online marketplaces including Amazon. Please carefully read the email as it contains potentially important information for your business. |
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From July 1, 2021:
- Amazon will be required to collect and remit VAT on your B2C sales of goods on Amazon in the following situations:
- Goods shipped from an EU location to the EU customer where you, the seller, are not established in the EU; and
- Goods shipped from a non-EU location directly to the EU customer where the value of the shipment does not exceed €150 - specific customs declaration and labelling requirements will apply for these shipments.
- Ending of the VAT exemption on imported small parcels valued at €22 or less. From July 1, 2021, all importations of e-commerce parcels will be subject to VAT irrespective of their value.
- The existing thresholds for distance sales of goods within the EU will be replaced by a new EU-wide threshold of €10,000. This will not be applicable on sales performed from a different country than your country of establishment or on sales where Amazon is required to collect and remit the VAT.
- The EU will introduce an optional VAT reporting procedure called Union One Stop Shop (“Union-OSS”). This simplified reporting procedure enables EU established sellers to report VAT on their distance sales throughout the EU under a single VAT filing in their home member state.
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| Please note that these changes do not affect the sale or delivery of goods to B2B customers in the EU where current VAT reporting requirements will continue to apply. You will still be required to meet your VAT registration requirements in the EU countries in which you hold inventory. |
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Please ensure that your Seller Central account details (e.g. business address, VAT registration numbers, default shipping address) are accurate and remain up to date and that you continue to provide list prices inclusive of VAT for the Amazon store you are listing on (e.g. prices on Amazon.de should be inclusive of German VAT). Refer to VAT information in your Amazon Seller Central account.
If you need help with VAT registration and filing in the UK, Germany, France, Italy, Spain, Poland, and Czech Republic, refer to VAT Services on Amazon to sign up today.
Further information along with additional steps that you should take to prepare your business will be provided in late April 2021. Our EU VAT e-commerce legislation help page will also be updated on a regular basis. We are here to help you prepare for these changes.
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