Avalara Ends VAT Reporting Services for Amazon: The Shift and Its Implications

In a surprising move, Avalara, one of Amazon’s leading tax compliance partners, is reportedly stopping its VAT reporting services for Amazon sellers enrolled in the PAN EU and European / Eastern European programs starting November 2024. Sellers currently subscribed to Avalara through Amazon can stay with Avalara for their VAT compliance, but the contract will be renewed with new terms. This decision marks a shift in e-commerce tax compliance, letting Amazon sellers revisit their tax reporting strategies.

Avalara Ends Partnership With Amazon

Avalara has been a big player in tax compliance, assisting countless Amazon sellers with their VAT obligations across multiple European countries. Avalara stopping with these services by Amazon has sent ripples through the seller community, as reported on various online forums and marketplaces. Read more about it on the Seller Central Forum here (as seen on the screen shot below).

Avalara Amazon

What’s Next for Amazon Sellers and VAT Compliance?

With Avalara stepping back, a lot of Amazon sellers are facing a gap in their VAT reporting processes. This situation arises as the e-commerce industry faces upcoming tax reforms. The current VAT system is likely to continue until at least 2027. This is despite previous expectations of a shift to a more digital approach to VAT, known as VAT in the Digital Age (ViDA). The transition to the One-Stop-Shop (OSS) system, which aims to streamline VAT reporting and collection for cross-border sales within the EU, is anticipated to replace the current system, and is expected to do so in July 2027.

Seeking Alternatives: Staxxer

In response to Avalara’s withdrawal from Amazon, Staxxer positions itself as an alternative, offering not only VAT reporting solutions but also a comprehensive platform for EPR needs. We’re extending an invitation to affected retailers to explore seamless transition, promising a simple and hassle-free switch handled by our experts.

Are you an affected seller, and do you want to have your VAT administration in order before Avalara officially resigns as an Amazon partner? You can schedule a call with one of our VAT experts here, who will guide you through the process and will answer all of your questions.

The Bigger Picture: Cost Pressures and the Search for Sustainable Partnerships

The retreat of Avalara could also be indicative of broader trends where cost pressures from large marketplaces like Amazon make sustainability challenging for their partners. It’s not isolated, as reports suggest other partners have also ended their collaborations with Amazon. This development underscores the importance for sellers to align with resilient and adaptable tax compliance partners.

Navigating Change in the E-commerce Tax Environment

As the e-commerce industry grapples with these changes, the need for timely updates and expert guidance becomes more important than ever. Sellers are encouraged to stay informed and consider subscribing to newsletters or consulting with tax professionals to navigate this evolving tax landscape and to ensure compliance and continued success in the world of online retail.

Need help?

You can always talk to us! We’re experienced with helping Amazon sellers with their European VAT and EPR administration. Interested in our automated, centralised solution? Or do you simply have some questions about handling VAT? Book a call with us, we’re happy to help.

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