The latest VAT updates inform us that Amazon's VAT Services on Amazon program is officially ending on October 31st, 2024. This significant change will impact thousands of sellers across Europe. The end of this program necessitates transitioning to another service provider. Any seller who relies on Amazon's VAT Services to manage VAT obligations in Europe will be affected by this change. Sellers can continue working with their current provider outside the Amazon program, avoiding the unnecessary costs and complications that might arise from switching agencies. Also, this change is very important for sellers to fulfill all mandatory VAT obligations. Also, it is revealed that future cooperation will be established with the company Avask, which will manage all future VAT fillings and charge sellers directly.
Amazon's VAT Services program ending: What sellers need to know?
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Author: Nikolina Basic
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Content accuracy validation date:
20.08.2024
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Also, Amazon officially put the statement where:
- In August 2024, the seller's tax provider will contact him to sign their terms and conditions and reactivate the seller’s user account to onboard you to their platform.
- Seller tax providers will continue to manage sellers' monthly or quarterly VAT filing with VAT Services on Amazon until the end of the September 2024 filing period, due in October 2024. Afterward, the seller will be automatically unsubscribed from VAT services on Amazon.
- Sellers, the current tax provider, will manage all future VAT filings and charge sellers directly, starting with sellers' October VAT filing, due in November 2024 (for monthly filing) or January 2025 (for quarterly filing).
- The seller can download any VAT documents (for example, VAT registration certificates, proofs of filing, and registration documents) from Seller Central until August 31, 2025. New VAT returns filed after October 31, 2024, will be automatically available on the seller’s tax provider’s platform.
- If the seller doesn’t want to continue with your current tax provider after October 31, the seller needs to click the link in his Seller Central case log to opt out and contact a tax provider of his choice by October 1, 2024, to ensure that the seller continues to meet VAT obligations.
To summarize, the transition timeline is as follows:
- Program End Date: The VAT Services on Amazon program will end on October 31st, 2024.
- Provider Outreach: Before that date, current tax providers will reach out to reactivate user accounts and onboard them onto their platform if needed.
- Until September 2024: Existing providers will manage VAT filings until the September 2024 filing period.
- From October 2024 onward, providers will handle all future filings directly.
What sellers need to do:
- Review Current Provider Options: Evaluate whether to continue with your current provider or switch to a new one.
- Understand Costs: Clarify the pricing structure for VAT filing services with your provider.
- Download documents: Ensure all necessary VAT documents are downloaded from Seller Central before August 31st, 2025.