VAT Services on Amazon: difference to Taxology

  • Last update: 25.06.2024
  • Published: 08.01.2022
  • Read in: 5 min

How do you start selling on Amazon in compliance with EU VAT rules? Are Amazon’s VAT services the only solution? What is the cost? This article will provide information about VAT services on Amazon and European VAT registration.

VAT Services on Amazon: difference to Taxology

What are VAT Services on Amazon?

Amazon, looking out for its sellers, has launched a series of services under the name “VAT Services on Amazon,” which include VAT registration and deregistration, VAT return filing, obtaining an EORI number, certified translations, tax representation, and generating reports such as Intrastat.

Unfortunately, these services do not cover all the countries where Amazon has warehouses. Amazon offers its VAT services in the following countries:

  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Poland
  • Czech Republic

This means the service is not comprehensive. If you want to obtain VAT registration, for example, in the Netherlands or Austria, you will not be able to use VAT services on Amazon. Taxology offers VAT registration and VAT returns in 17 EU countries and the UK.

VAT Services on Amazon - Cost

Amazon offers its VAT services in cooperation with several external providers. You can choose one of the providers from Amazon’s list, but you will not be able to change them after starting the registration process.

The cost of the VAT service depends on the number of countries you want to register in. VAT registration costs 50 EUR per country. The monthly fee for VAT returns starts at 29.20 EUR per country. Fiscal representation costs 21 EUR/month for each country where you need fiscal representation, which includes Poland, Spain, France, and Italy.

You can set everything up in your seller account and get VAT registration with a few clicks, but it doesn’t work with all providers. It is essential to check all details carefully before choosing one.

Amazon VAT Calculation Service

It is also worth noting that Amazon offers Amazon VAT Calculation Services, which are not the same as VAT Services on Amazon, but this can be confusing for any Amazon seller.

Amazon VAT Calculation Services will calculate the product cost on your business account based on your registration. When a customer makes a purchase, a VAT invoice will be automatically generated. This makes your product more attractive and easier for customers to decide to purchase, increasing your chances of making sales.

If you want to learn more about this service, read our article – Amazon VAT Calculation Service – What is it, how does it work, and is it worth it?. Now let’s move on to comparing VAT services on Amazon and VAT Compliance services from Taxology.

VAT Services on Amazon vs. Taxology VAT Compliance Services

Although Amazon’s VAT services might seem like an attractive solution for many sellers, it’s essential to remember that this solution has many limitations and is not comprehensive. It is not only performed by an external entity, not Amazon itself, but also these services only apply to sales on the Amazon platform.

Therefore, let’s compare the services offered by Amazon with those available from Taxology.

Service VAT Services on Amazon Taxology VAT Compliance services
VAT Registration 7 countries 18 countries
VAT Deregistration YES YES
VAT Return Filing Support YES YES
Polish Language Support NO YES
Communication with Tax Authorities Problematic YES
Customer Support Problematic Contact with the Support Team through Help Desk
VAT-OSS Support NO YES
Intrastat Reporting Support 7 countries 18 countries
Tax Advisory NO AVAILABLE
Accounting Support NO AVAILABLE

 

VAT Registration/Deregistration with Amazon Services

Amazon VAT services include VAT registration, but it’s limited to only 7 countries. In contrast, our offering includes solutions available in 18 countries – 17 EU countries and the UK, each with different requirements and regulations for obtaining a VAT identification number.

 

VAT Return Filing and Intrastat Reporting Support

Similarly to VAT registration, Amazon’s service for submitting VAT and Intrastat declarations applies only to 7 countries. In turn, Taxology’s offer includes support in settlements and submission of Intrastat declarations in 17 European Union member states and the United Kingdom.

 

VAT Services on Amazon and One-Stop Shop

Unfortunately, VAT services on Amazon do not support VAT-OSS registration and filing. You can identify your OSS transactions in Amazon VAT reports, but you will have to fill them out yourself or with other accountants. Taxology offers a comprehensive VAT compliance service, meaning we can help not only with regular VAT registration but also with registration in the One-Stop Shop system. We will not only identify all transactions that should be declared in VAT OSS but also complete and submit the declaration for you.

 

Customer Support – VAT Services on Amazon

Are you familiar with the feeling of waiting for a response from the support team? Days pass, and your inbox remains empty? It’s no wonder frustration arises in this situation. If you use VAT services on Amazon, you can manage all your VAT returns on your central seller account, but if you need tax advice, professional advice, or any information on VAT registration, it can be extremely challenging to get a quick response. Additionally, you will have to resolve all tax issues in English.

You can do something about it – choose to work with Taxology, and you will experience professional customer support, which in our company is also available in Polish. Both customer service and contact with the VAT Compliance team are included.

 

Tax Advisory and Accounting Support

Taxology’s service offering also includes tax advisory solutions: consultations, tax audits, verification of correct VAT rate application, and the possibility of applying reduced VAT rates or support in tax relief matters.

Furthermore, we are happy to support your business in e-commerce accounting, including bookkeeping, payroll services, preparing reports and statements, and implementing appropriate software.

VAT Services on Amazon - Summary

VAT services on Amazon are a relatively inexpensive way to outsource tax matters. Unfortunately, they do not cover many issues, so it’s hard to feel secure and avoid stress. Amazon VAT services can help supplement Amazon’s services on your own.

Initially, Amazon’s offerings create the impression that the seller will receive full support in tax matters. However, it is impossible to overlook tax issues beyond the standard scope. The Amazon service has significant limitations: it does not cover all countries.

If you sell to countries other than those included in Amazon’s VAT services or need additional support, such as tax advice or accounting assistance, choose the VAT Compliance service from Taxology. Schedule a consultation and let our specialists handle 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.