What is new in Seller Central?

1. Confirm your OSS VAT status in Seller Central. If you have already received confirmation from your local tax authority that you are enrolled in Union One-Stop Shop (OSS), please mark the VAT registration number used for OSS in Seller Central.
2. We have created the following manuals for you on how to register for Union One-Stop Shop. Please download the manual for each EU member state in which you have established your business for instructions on how to enrol with your local tax authority for OSS. You can also find these manuals in our EU VAT on e-Commerce (EU VOEC) Legislation – 2021 Help page.

OSS Germany; OSS France; OSS Italy; OSS Poland; OSS Austria; OSS Sweden; OSS Netherlands; OSS Czech Republic

What is changing from July 1st onwards in the EU?

Following the implementation of the EU e-commerce VAT changes from 1 July 2021, we will see the following changes to VAT treatment and reporting of intra-EU distance sales in the EU:

1. Distance Selling Thresholds in the EU are being removed
   Distance selling thresholds will be replaced by a general tax at destination principle for all Business-to-Consumer (B2C) e-commerce supplies of goods, i.e. VAT is due in the destination EU country. Because of the tax at destination principle introduced, you may be required to obtain a VAT registration number in each EU member state where you perform B2C distance sales.
2. EU has foreseen a Union One-Stop shop (OSS) simplification to report VAT on Business-to-Consumer sales cross EU
   To remove the high administrative burden of obtaining and managing up to 27 EU VAT registration numbers, we encourage you to opt in to One-Stop Shop (OSS). When opting in for OSS, you will report all EU B2C Distance Sales through a single VAT return within your country of establishment, irrespective of the actual ship-from country. Note that only B2C cross border sales can be reported through OSS. One-Stop Shop does not remove other obligations for obtaining a VAT registration number such as holding inventory in other EU countries as local sales and B2B sales remain taxable in line with current VAT rules.
3. You may benefit from a Micro-Business exemption
   When you do not exceed a cross EU threshold of EUR 10,000 in cross-border B2C distance sales dispatched from your country of establishment annually, you may benefit from a micro-business exemption on those specific sales and you are allowed to charge VAT from your country of establishment instead of the destination country.
4. Amazon will collect and remit VAT if you are dispatching inventory with an intrinsic value of up to EUR 150 from outside of the EU to customers in the EU
   From July 1, 2021, Amazon will collect VAT on the sales of goods delivered to B2C customers in the EU, ordered through any Amazon store, and delivered from inventory stored outside the EU in a delivery with an intrinsic value of up to EUR 150 – This is referred to as the Import One-Stop Shop (IOSS). Please visit our EU VAT on e-Commerce (EU VOEC) Legislation – 2021 Help page to learn how to prepare your business for dispatching inventory from outside of the EU to customers in the EU.
5. Local anti-fraud legislations remain, but Union One-Stop Shop (OSS) can now be used
   In all jurisdictions with local tax-related anti-fraud legislations (i.e. France, Austria and Germany), local VAT registration numbers are required if you store inventory in these countries. In case you only fulfil B2C distance sales to these countries, a declaration of opt-in to Union One-Stop Shop (OSS) will be sufficient to continue selling in France, Austria or Germany.
6. VAT Services on Amazon will not support generation or filing of OSS reports at the time of launch of this legislation
   Enrolment into Union One-Stop Shop (OSS) and filings of OSS declarations is done in your country of establishment within the EU. VAT Services on Amazon currently does not provide VAT compliance services in the country of establishment of your business, and would therefore not support the generation or filing of OSS reports at the time of launch of this legislation. We will, however, help you identify the transactions that should be filed in your OSS declarations. These transactions will be excluded from VAT reports prepared by VAT Services on Amazon, and you will need to work with your domestic/home country tax agents for OSS returns filing. Please contact your domestic/home country tax agent with regards to obtaining an OSS number and filing your OSS returns.
7. Union One-Stop Shop (OSS) changes for VAT Calculation Service
   From July 1, 2021, we will adjust the VAT Calculation Service methodology according to the new rules introduced through the EU VAT on e-Commerce Package (EU VOEC) and the following changes will be made to its calculation logic:
   • For all B2C cross-border sales, the VAT Calculation Service will apply and generate an invoice with the VAT rate of the country to which the order is dispatched (destination tax) if you have provided an OSS VAT registration number or a VAT registration number for the destination country. If you do not provide an OSS registration number or have no VAT registration number in the country to which the order is shipped, then you will not be issued an invoice with VAT calculation.
   • As per the current methodology, the VAT Calculation Service generates a document (invoice or receipt) only if you have provided us with a valid VAT registration number for the country you are dispatching from.
   • The VAT Calculation Service will not support microbusiness exemption if you have yearly distance sales lower than EUR 10,000.

Further information regarding this change, and the implications for your business, is available on the EU VAT on e-Commerce (EU VOEC) Legislation - 2021 Help page.

Recommended Actions

1. Consider Registering for Union One-Stop Shop (OSS)

   OSS may simplify VAT reporting on your sales of goods to EU consumers on Amazon stores. Under OSS, you only need to be registered for VAT in the country where you have established your business to report VAT on your distance sales to customers in all EU member states. Starting in April 2021, all EU Member States are obliged to provide you with an online portal to allow you to opt in to OSS in the country where you have established your business. Check the following OSS manuals for the EU country in which you have established your business on how to apply for OSS.

   Germany OSS; France OSS; Italy OSS; Spain OSS; Austria OSS; Czech Republic OSS; Netherlands OSS; Poland OSS; Sweden OSS

   If you already received confirmation from your local tax authority that you are successfully enrolled into OSS, please mark the VAT registration number used for OSS in Seller Central here.

   Note that if you store inventory in any EU Member state, you will still be subject to local VAT registration requirements as all local supplies and Business-to-Business sales remain taxable/reportable in line with the current VAT rules.

   The official guide to OSS is published by the EU commission here.

   Would you consider registering for OSS? Please let us know your opinion here.

2. Review and update your Seller Central account details

   Please ensure that your Seller Central account and VAT details are accurate and up to date by reviewing:

   • Your business address by visiting Business address page.

     The address you provide must represent your primary place of business (head office or branch) where you receive services from Amazon. Your business address is normally where you have registered your business and where its management are located. For private individuals, this will represent your usual place of residence. Note that company name and address in Seller Central needs to match the data provided on each EU VAT Registration number.

     We may perform identity checks to confirm that your business belongs and operates from this address. If we are unable to verify your business address, this could lead to your account (and/or your disbursements) being suspended until we can successfully verify your details.

   • Update your default shipping address by visiting Shipping Settings in case you dispatch to customers directly.

     The address you provide must represent the primary address from which you self-fulfil orders. This address may be used by Amazon to determine the originating jurisdiction for your sales and the ‘deliver-from’ address for sellers participating in VAT Calculation Services.

   • Update your VAT registration numbers by visiting VAT calculation settings.

     You should provide a VAT registration number issued in the same country as your business address (and mark this as primary). Failure to provide this VAT registration number might result in incorrect VAT charges. We may require you to provide other VAT registration numbers belonging to your business in countries outside of your business address country. In certain locations, local laws/regulations mean that Amazon must collect your local VAT registration number(s) where you store your inventory or where you have exceeded certain sales thresholds. We may also require details of your other VAT registration numbers in order for you to participate in certain Amazon programmes.

     Note that the business name and address for each EU VAT registration number needs to match the business name and address stored by the issuing European tax authority. If this information does not match, we may consequently need to suspend your selling privileges in the respective country.

     It is recommended that you regularly review this information to ensure it remains up to date.