Changes on Amazon will affect sellers starting August 1, 2024!

  • Last update: 18.06.2024
  • Published: 05.06.2024
  • Read in: 3 min

From August 1 of this year, Amazon platform sellers may face changes. This is because these changes will affect entities located in 9 countries, including Poland.

Amazon has announced that it will be changing the service provider for sellers, resulting in a change in the taxation method for invoices issued by Amazon to sellers. From August, sellers’ payouts (including those based in Poland) will be reduced by the amount of VAT, in accordance with the rates applicable in their home countries.

If you want to learn more, we encourage you to read the entire article, where you will find out:

  • What exactly is the reason for the change in the taxation method for Amazon sellers?
  • What will change in the settlements and contracts related to selling on Amazon?
  • Who exactly will be affected by the change in the Amazon service provider?

Change of the Amazon sales service provider

So far, sellers who listed their offers on the Amazon platform have settled with Amazon Services Europe S.à r.l. (ASE), located in Luxembourg, which has been the entity providing Amazon sales services.

From August 1, 2024, the new contractor for sellers will be Amazon EU S.à r.l. (AEU) with branches in 9 European countries.

What exactly will change?

As a result of changing the Amazon sales service provider, the amount of VAT due on sales on Amazon, in accordance with the rates applicable in the seller’s home country, will be deducted along with the fees. For Polish sellers, this means that their payouts will be reduced by 23% VAT.

It is worth noting that the payout cycle, the currency in which the funds are paid, and the currency in which invoices are paid will remain unchanged. However, the entity listed on the invoice will change. Amazon Services Europe S.à r.l. (ASE) will be replaced by Amazon EU S.à r.l. (AEU), resulting in new:

  • Entity name,
  • Company address,
  • Company VAT number,
  • Local VAT rate (in some cases).

Moreover, contracts concluded with ASE will be updated to include the new Amazon entity, and the exact changes can be found at this address.

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Who will be affected by the change on Amazon?

The change of the Amazon sales service provider will affect all sellers who currently have a contract with ASE. From August 1, the obligations specified in this contract will transfer to AEU and will affect entities located in the countries where the new entity has its branches, which are:

  • Poland,
  • United Kingdom,
  • Germany,
  • Spain,
  • Italy,
  • France,
  • Netherlands,
  • Belgium,
  • Sweden.

If the seller’s company on Amazon is located in a country other than one of those listed above, the sales will be settled without changes – payouts will not be reduced by the VAT amount. However, as with sellers from the above 9 countries, contracts will be updated, and the selling entity on invoices will change.

Changes on Amazon from August 1, 2024 - Summary

The change in the invoicing method of services by Amazon will have a significant impact on the cash flow of sellers on Amazon. In particular, the payouts made by Polish sellers will be reduced by the VAT amount at a rate of 23%.

This VAT amount can be deducted in the monthly VAT returns submitted to the Polish tax office. For companies that primarily conduct cross-border sales, this will mean waiting up to 60 days for the VAT refund from the Polish tax office.

If you need a tax advice or support with VAT concerning Amazon and other marketplaces, we are here to help! Schedule a consultation and let us know what the problem is, and we will take care of the rest!

Tomasz Połeć Tomasz is a co-founder of Taxology and a tax advisor (license No. 12104), with 15+ years of experience in Polish and international consulting firms. Leveraging his expertise from numerous tax reviews and audits, he offers proficient tax advisory services to e-commerce companies. He specializes in advising on VAT and CIT settlements in e-commerce and logistics.