Amazon VAT Calculation Service – What is it, how does it work, and is it worth it?

Amazon VAT Calculation Service – Definition

Amazon VAT Calculation Service, a solution designed for business customers, speeds up and automates certain aspects of VAT settlement. It is a free solution for B2B sellers on the Amazon platform across 27 European Union countries and the United Kingdom.

How does Amazon VAT Calculation Service work?

Under the Amazon VAT Calculation Services, users can automatically issue invoices that comply with European Union regulations and the local laws of the buyer’s country. Users of the Amazon VAT Calculation Services will also be visible in the segment of sellers who offer automated VAT invoicing to business customers. Additionally, using these services means that business customers can immediately see the net price of an offer, which contributes to greater competitiveness and increases the chances of winning the Buy Box.

Is it worth using Amazon VAT Calculation Service?

Amazon VAT Calculation Service can be a very beneficial solution for many sellers. As mentioned earlier, it increases the chance of securing the Buy Box, which Amazon explicitly states on its website. Additionally, it has been noted that the sales of users of this service have increased by even 50% since its implementation.

However, an important downside is related to brand building. Although invoices are generated automatically, they are based on a single template in which even a company’s own logo cannot be included.

Is Amazon VAT Calculation Service the same as VAT Services on Amazon?

It should be emphasized that Amazon VAT Calculation Service (Amazon VCS) is not the same as VAT Services on Amazon. The solutions described in this article pertain to the automation of invoice issuance and B2B sales.

If you want to know more about VAT Services on Amazon, check our article focus on this matter – VAT Services on Amazon: difference to Taxology.

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Who can use Amazon VAT Calculation Service?

Amazon VAT Calculation Service (Amazon VCS) is available to sellers with a professional account on the service. Moreover, they must provide all required VAT registration numbers associated with locations of goods dispatch, places of business, headquarters, and any obligations related to distance selling.

Additionally, it is necessary to indicate a default shipping location associated with the offers issued, as well as provide VAT registration numbers linked to the countries in which the seller uses Amazon FBA solutions.

In which countries is Amazon VAT Calculation Service available?

Amazon VAT Calculation Services is available in all 27 European Union member states, as well as in the United Kingdom.

Amazon VAT Calculation Service - Summary

Amazon VAT Calculation Service is a solution designed for Amazon sellers with a professional account who want to increase their chances of B2B transactions. As part of Amazon’s VAT calculation services, they receive the ability to automatically generate VAT invoices, which improves visibility, obtains a Buy Box, and ultimately increases sales.

As we can read on Amazon’s official website, Amazon VCS users increased their sales by up to 50% by choosing this solution.

However, it should be borne in mind that automatically generated invoices are based on a template in which it is not possible to place your own logo, and in order to use VAT calculation services, certain requirements must be met, including: providing the required VAT numbers or shipping addresses.

If you sell on Amazon or need VAT support for cross-border e-commerce, schedule a consultation and see how we can help you and your company.