All you need to know about Amazon & VAT

VAT Matters as a Seller on Amazon

Amazon is one of the largest international online sales platforms, and since 2020, Amazon has opened its doors to Dutch online retailers! This means that you, as an online seller, can join Amazon and sell your products via the platform. In this blog, we will explain how selling on Amazon works, how Staxxer can assist with your Amazon VAT declaration and Amazon VAT invoice.

Amazon is an international marketplace model: an e-commerce platform where online buyers and sellers are connected. Since Amazon is a major player internationally, it is possible that Amazon stores stock of your products in another country.

Amazon FBA

For every online seller who uses Amazon as a platform, there is the option to use Amazon FBA (Fulfilment By Amazon). With this option, Amazon takes care of the logistics part of your orders. Think of storage of your goods, shipping and returns, customer service, and invoicing. This option ensures that your products are stored in an Amazon warehouse. When an order is placed, the product will be shipped from the nearest warehouse. This way, the customer receives the order as quickly as possible! In addition, all your products get the option for Amazon Prime delivery and they get ‘buy-box’ priority. Two benefits compared to non-FBA sellers!

However, there is a fee for this, which consists of the Fulfilment fee and a storage fee. This fee depends on the dimensions and the weight of your product.

Moreover, very important: when Amazon stores your products in, for example, France, you are also liable for VAT there! You are personally responsible for this VAT declaration and for applying for a French VAT number. This also applies if you do not choose FBA but store your goods across the border yourself! Amazon also offers sellers a PAN-European FBA option. This means that it is possible to distribute your stock over 6 European countries: Germany, France, Italy, Spain, Poland, and the Czech Republic. This means you become VAT liable in all 6 of these countries! Staxxer can help you get a PAN-European VAT number, so you don’t have to worry about arranging all the numbers.

One Stop Shop (OSS) Declaration and Amazon VAT

If you have stock stored in another European member state via Amazon and/or if you sell products outside the Netherlands, these sales are included in your One Stop Shop (OSS) declaration. This applies, for example, when an order is shipped to France from a Belgian warehouse. The rule here is that the country of destination determines the VAT, not the country of dispatch. This is known as the destination principle of the One Stop Shop, and it is the reason why you are obliged to declare the sale in your OSS declaration. If this sounds complicated, Staxxer is happy to help.

Staxxer and Selling on Amazon

Do you want to sell through Amazon, but does the whole VAT landscape sound tricky? As a seller on Amazon, you can hand over your VAT-related matters to Staxxer. This saves you a lot of time and effort. Think, for example, of applying for various European VAT numbers. We can also help you get PAN-European VAT numbers.

Do you want to know more about what Staxxer can do for you?

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