VAT Compliance for Amazon Sellers in Europe: Key Requirements

For Amazon sellers, Europe provides a great business opportunity to serve customers across Europe without building their own e-commerce infrastructure from scratch. However, expanding their businesses in the European markets means tax responsibilities that sellers must understand before listing products, importing inventory, or starting cross-border sales.

Out of many tax obligations, Value Added Tax (VAT) is one of the most important ones. Further, you may need to comply with VAT obligations in multiple countries based on where your business is established, where your inventory is stored, how your orders are fulfilled, and where your customers are located.

For example, a business selling products through Amazon Germany may need a German VAT registration if it stores inventory there. If the same business uses Amazon’s fulfilment network to store products in several EU countries, additional registrations and reporting obligations may arise. That’s why understanding VAT compliance for Amazon sellers in Europe helps businesses avoid registration delays, incorrect VAT calculations, late returns, and unnecessary penalties.

This post will discuss the main VAT obligations for Amazon EU sellers, including VAT registration, Fulfilment by Amazon (FBA), cross-border sales, One Stop Shop (OSS), import VAT, VAT returns, and ongoing compliance.

What Is VAT and Why Does It Matter for Amazon Sellers?

VAT is a consumption tax applied to many goods and services in European countries. Businesses generally collect VAT on taxable sales and report it to the relevant tax authorities, subject to the applicable rules. As an Amazon seller in Europe, you may need to account for VAT on your product sales, maintain transaction records, submit VAT returns, and pay any VAT due.

The VAT obligations depend on your business model and transactions. Selling products from a warehouse in Germany, shipping goods from the Netherlands to French consumers, and importing products from China into the EU can create different VAT requirements. Bear in mind that Amazon’s involvement does not automatically remove your tax responsibilities. Although Amazon may collect and remit VAT for certain transactions under marketplace rules, sellers can still have their own registration, reporting, and payment obligations. The main considerations in its European VAT guidance for sellers are:  

1. VAT Registration in Europe

The first step for Amazon sellers planning to enter European markets is to determine where your business needs to register. For Amazon sellers, there’s no single VAT registration that automatically covers every business activity in every European country. VAT registration requirements change based on where your business is established, where you store goods, where you ship products from, and the nature of your sales. Amazon sellers may need a VAT registration in an EU country when:

• You store inventory in that country.

• You make taxable domestic sales there.

• You import goods into the country, and the transaction structure creates a registration obligation.

• You carry out cross-border transactions that require local VAT reporting.

• Your business activities otherwise trigger a local VAT registration requirement.

Does Every Amazon Seller Need VAT Registration in Every EU Country?

No. The VAT registration requirement for Amazon sellers depends on the seller’s circumstances. An Amazon seller selling goods from one EU country to consumers in other EU countries may be able to report eligible cross-border B2C sales through the Union OSS scheme.

They don’t need to register for VAT in every destination country. However, OSS does not replace local VAT registrations required because the business stores inventory or carries out other transactions in a country.

On the other hand, Amazon sellers established outside the EU must assess their obligations separately. The same VAT registration thresholds and rules don’t automatically apply to them as to businesses established within the EU. Before expanding into another marketplace or enabling additional storage locations through Amazon, review the resulting VAT requirements.

2. Amazon FBA Effect on VAT Compliance

Amazon’s FBA allows sellers to store products in Amazon fulfilment centres and use Amazon’s logistics network to pick, pack, and ship orders. With this, FBA helps businesses manage fulfilment at scale, but inventory storage has important VAT consequences.

• For Inventory Stored in the EU

If Amazon stores your products in an EU country, then your business will generally need a VAT registration there. The registration requirement also applies even when you have few sales in that country or most of your customers are elsewhere.

Amazon specifically warns that storing goods outside your home country can trigger additional VAT registration and reporting requirements.

• Pan-European FBA Programme

Amazon’s Pan-European FBA programme can distribute inventory between eligible fulfilment centres in different countries. With this, Amazon sellers can improve delivery times. However, sellers must understand where their goods are stored and how inventory movements affect their VAT obligations.

Depending on the arrangement, businesses may need to report movements of their own goods between EU countries and account for the relevant transactions in their VAT returns. That’s why it’s become important for Amazon sellers to keep track of inventory movements, storage locations, and the countries enabled in your Amazon account.

3. VAT on Cross-Border Sales Within the EU

Many Amazon sellers set up in one European country and then serve customers in neighbouring EU countries. These cross-border sales within the EU fall under the EU rules for intra-Community distance sales of goods.

• The €10,000 EU-Wide Threshold

Under the applicable EU rules, a combined annual threshold of €10,000 applies to certain cross-border B2C sales of goods within the EU and specified telecommunications, broadcasting, and electronically supplied services.

This is a combined EU-wide threshold for qualifying supplies, not a separate €10,000 allowance for each destination country.

For an eligible seller established in one EU country, sales below the threshold generally remain taxable in the country where the seller is established, provided the relevant conditions are met. Once the threshold is exceeded, destination-country VAT generally applies to qualifying cross-border sales. The seller may account for that VAT through the Union OSS scheme where the transactions qualify.

4. Understanding the EU One Stop Shop (OSS)

EU One Stop Shop (OSS) is an optional reporting system that simplifies certain cross-border VAT obligations. Rather than registering VAT separately in every destination country solely to report eligible cross-border B2C sales, an eligible seller can use OSS to declare and pay the relevant VAT through one EU member state.

Should Amazon Sellers Register for OSS?

Amazon sellers involved in cross-border B2C sales to customers in multiple EU countries can benefit from OSS registration. However, you should first determine whether your transactions qualify, which country should handle your OSS registration, and which VAT obligations still require local reporting. Amazon sellers using multiple fulfilment centres should review their setup carefully because OSS does not eliminate the local registrations created by inventory storage.

5. Importing Goods Into the EU

Many Amazon sellers source products from outside the European Union, including China, the United States, and other international markets. Importing goods into the EU can create additional VAT and customs requirements. Let’s discuss these VAT and customs requirements one by one.

• Import VAT

Import VAT is generally payable when goods enter the EU, subject to the applicable customs and VAT rules. The amount depends on the import arrangement, the customs value, the relevant VAT rate, and other applicable charges. The fact that a product will later be sold through Amazon does not remove the need to address import requirements.

• EORI Registration

Businesses involved in importing or exporting goods may need an Economic Operators Registration and Identification number (EORI). EORI registration is used to obtain this number for customs-related identification within the relevant customs systems. An EORI number is different from a VAT registration number, and one does not replace the other. Whether and where you need an EORI number depends on your establishment, customs activities, and the applicable rules.

• IOSS for Low-Value Imported Goods

The Import One Stop Shop (IOSS) is a separate scheme for reporting VAT on qualifying distance sales of imported goods in consignments with an intrinsic value not exceeding €150, subject to the applicable conditions and exclusions.

It can allow VAT to be collected at checkout and reported through the IOSS scheme rather than being collected from the customer upon delivery. The rules differ according to who facilitates the transaction, the seller’s establishment, and how the goods are imported.

Also, the customs duty rules changed on 1 July 2026: the former €150 customs-duty exemption was abolished, with a temporary €3 customs duty applying to each item supplied in qualifying imported-goods distance sales in consignments not exceeding €150 under the rules currently in force. This customs change is separate from the VAT rules and should not be confused with the scope of IOSS.

6. VAT Invoices and Transaction Records

To ensure VAT compliance, Amazon sellers need to maintain accurate invoice and transaction records. Professional accounting and bookkeeping services in the Netherlands can help businesses organize financial records, reconcile transactions, and maintain accurate reporting .They need to retain the information needed to support their sales, purchases, imports, VAT deductions, and reported transactions. Depending on the applicable rules, relevant records can include:

• Sales invoices and credit notes.

• Supplier invoices and purchase documentation.

• Amazon settlement and transaction reports.

• Records of import VAT and customs declarations.

• Inventory transfers between fulfilment centres.

• VAT registration details for each country.

• Regular VAT returns and OSS returns.

• Payment records supporting VAT calculations.

Your records should make it possible to reconcile Amazon sales with the figures reported in your VAT returns. The correct approach is to use the underlying transaction data and apply the relevant VAT rules, rather than treating net payouts as the total value of sales.

How FirmNL Can Help With VAT Compliance for Amazon Sellers

Managing VAT across Europe can become complicated when your business uses multiple fulfilment centres, imports products, or sells to consumers in several countries.

FirmNL supports businesses with Dutch VAT registration, VAT compliance, OSS registration, and related tax administration. Our team can help your business understand its Dutch VAT obligations, identify relevant registration requirements, and organize ongoing compliance processes.

We can also support businesses with Dutch company setup and bookkeeping when these services form part of a wider European expansion plan. Whether you are launching your first Amazon store or expanding an established business into additional EU markets, understanding your obligations early can help you manage tax reporting more effectively.

Need help with VAT registration or compliance for your Amazon business? Contact FirmNL to discuss your European VAT requirements.

Frequently Asked Questions

1. Do Amazon sellers need VAT registration in Europe?

Not all sellers will need to register themselves in all countries in Europe. This depends on the location of the business, the location of the stock, the type of transactions that take place, and the local regulations. Stocking in one EU country makes VAT registration necessary there.

2. Can Amazon sellers use OSS instead of registering for VAT in multiple EU countries?

Simplified OSS can facilitate reporting in relation to cross-border B2C supplies which qualify, however, it is not intended to substitute for VAT registration obligations arising from stock holdings or other local operations. It is recommended that the suppliers consider their logistics strategy.

3. Does Amazon pay VAT on behalf of every seller?

No. Although Amazon collects and remits VAT for some transactions, it does not cover all VAT liabilities for each transaction and each seller. Business owners may still require their own VAT registrations, filings, import VAT, and stock reporting.

4. Do Amazon FBA sellers need VAT registration in every country where Amazon stores their products?

Generally, registration for VAT is required for each EU country where the stock is kept by the seller. Thus, the use of FBA and Pan-European FBA will create extra responsibilities for VAT registration and reporting. It is important to determine the fulfilment centres that are active.

5. What is the difference between OSS and IOSS for Amazon sellers?

The OSS system will make it easier to file the reports for any eligible cross-border sales, including the distance sales of goods within EU. The IOSS system has been developed for filing VAT reports on eligible distance sales of imported goods in shipments having an intrinsic value up to €150.

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