VAT Calculation Service - FAQs

VAT Calculation Service

I have enrolled into the VAT Calculation Service, but what is the service I will receive as a seller?

Amazon’s VAT Calculation Service provides sellers with VAT calculation services and invoicing functionality. By enrolling in our VAT Calculation Service, Amazon Business sellers will also be able to offer VAT exclusive prices to Amazon Business customers and will have the Downloadable VAT Invoice badge for their offers, increasing the visibility of their products on Amazon Business. Additionally, for Amazon Business sellers that are located outside of the EU and ship goods directly from their non-EU location to customers located in the EU (acting as the importer of records), a Downloadable Receipt Badge will be displayed on such offers.

Is there an incremental fee to enroll and use Amazon's VAT Calculation Service?

No, Amazon’s VAT Calculation Service is available to all sellers as long as they fulfil the basic enrollment criteria.

Can I use Amazon’s VAT Calculation Service globally or only within the EU (European Union)?

Amazon’s EU VAT Calculation Service can only be used for sales on the Amazon EU marketplaces. In principle, VAT Calculation Service only supports products that are dispatched from locations within the EU. However, for orders that are directly shipped from outside the EU into the EU, VAT Calculation Service will issue a receipt (i.e. a ‘proof of purchase’, not a VAT invoice) with no VAT calculation.

Is there more information on how Amazon will perform tax calculation via the VAT Calculation Service?

Refer to our EU VAT Calculation Service Methodology document. This document will provide you with comprehensive information on the functionality as well as the logic and methodologies applied.

Is there more information on how Amazon will calculate and collect EU VAT from July 1 2021?

Refer to our EU VAT eCommerce legislation help page. This help page provides more information on how the EU VAT on e-Commerce (EU VOEC) Legislation will affect seller’s activity through Amazon stores.

How will I identify if a transaction falls under Union One Stop Shop (UOSS) in my VAT Calculation Report?

In the VCR Report, you can look at Reporting Scheme column with value as VCS_ EU_ UOSS. This will help to identify transactions that have been calculated under UOSS.

Can I set my activation date to any date in the future?

Sellers are able to define a future date for the activation of VAT Calculation Service. When you register, the first available activation date will be after five working days.

I made an error, how can I update my VAT Calculation Service settings?

You can go back to the VAT Calculation Service settings page in Seller Central and update your information. The tax information section can be found here.

When I submit VAT-inclusive pricing to Amazon, how will Amazon know how much VAT I included in the price?

The VAT included in your pricing should be inclusive of the target marketplace country’s VAT, if you are VAT registered in that country. For instance, if you are VAT registered in Germany, your Amazon.de prices should be inclusive of German VAT (assuming there are no special VAT rates applicable). If you are not VAT registered in that country, your pricing should be inclusive of the VAT associated with the Default country for VAT exclusive price, which you selected in the tax enrollment process. For instance, if you selected UK as the Default country for VAT exclusive price and you are not VAT registered in Germany, your Amazon.de prices should be inclusive of UK VAT (assuming there are no special VAT rates applicable).

How will Amazon calculate my VAT exclusive price on sales to customers?

Amazon’s VAT Calculation Service uses the tax inclusive selling price (“Display price”) that you provided for the marketplace, as well as logic that is based on your VAT registration status in certain countries, in order to determine which VAT rate will be used to derive the exclusive price (“VAT exclusive price”).

For comprehensive information on how tax calculations are performed and how that influences your pricing, refer to the EU VAT Calculation Service Methodology document.

Will my VAT exclusive price be visible to buyers?

Your VAT exclusive prices will only be visible to Amazon Business customers and only if you are enrolled in Amazon's VAT Calculation Service.

When will you start calculating VAT on my sales and generating VAT invoices?

VAT calculation on your orders will start on the activation date you stipulate and, on the condition, that your settings fulfil the eligibility criteria for participation in VAT Calculation Service.

What does the invoice that Amazon creates look like?

View a sample invoice

Should I continue to issue VAT invoices once I enroll in Amazon's VAT Calculation Service?

After activation, our VAT Calculation Service will automatically issue invoices and credit notes to Amazon Business customers and the customers who have entered their VAT numbers or tax codes into their accounts, where applicable. You should ensure that you no longer produce VAT invoices and credit notes for transactions that occur after enrollment within the service. You would still need to provide credit notes, as required, for transactions that occurred prior to the activation of the VAT Calculation Service.

Can VAT Calculation Service correct VAT invoices?

Amazon’s VAT Calculation Service supports VAT invoice correction to update the Billing Address and/or the Legal Business Name of the Business customers on the VAT invoice. VAT Calculation Service issues a credit note against the original invoice and a new corrected VAT invoice with the updated Billing Address and/or Legal Business Name.

If I am enrolled in FBA, do I need to enter the Amazon ship-from locations or my own?

You should provide the address from where you self-fulfil your products as your default ship-from address. Our VAT Calculation Service will use Amazon's fulfilment location addresses for products fulfilled as part of the FBA program.

What happens if I ship products from locations outside the EU?

If you ship products from locations outside the EU, you can still use the service for your FBA orders by signing up with your non-EU address as the default ship-from location. In principle, VAT Calculation Service will only perform VAT calculation and issue VAT invoices for your FBA offers. However, if you are importing products from outside the EU, clearing the duties and taxes associated with that import in your own name and then making local (intra-EU) sales from that location, you may specify that importation point as the default ship-from location. In that case, VAT Calculation Service will also perform VAT calculation and issue VAT invoices.

For orders that are directly shipped from outside the EU into the EU for which duties and taxes are cleared in the customers’ name, VAT Calculation Service will only issue a receipt (i.e. a ‘proof of purchase’, not a VAT invoice).

Can you calculate VAT on products that are subject to different rates (i.e., standard, reduced, super reduced, and zero rated)?

Our VAT calculation service includes support for several classes of products that require special VAT treatment – including food, clothing, and books. During the enrollment process you will be asked to provide an Amazon-supplied default product tax code (e.g., standard-rated products or food) to be applied to your offers. If you list products across a number of different product tax codes, you can override the default code by specifying a product tax code at the offer level. You can find the complete list of product tax codes available here.

What happens when my products are shipped cross-border to a destination outside the target marketplace country?

We will complete two steps to determine the amount to be charged to the customer. First, we will remove the VAT included in the VAT-inclusive offer price to determine the VAT-exclusive selling price. Next, we will use your tax settings and transactional information (including location, product, and customer information) to determine the correct amount of VAT to be added to the VAT-exclusive selling price. This may result in a higher or lower VAT-inclusive selling price to the customer. If the customer is a VAT-registered business or if the order is shipped outside the EU, this may result in no additional VAT (subject to the reverse charge mechanism or zero rate). We do not calculate additional VAT on sales of products shipped outside the EU.

Tax Identification Number

How can I get a VAT registration number for my business?

If you believe your business is required to be registered for VAT purposes, please consult your tax advisor on how to obtain a VAT registration number.

Is it mandatory to have a VAT number to join Amazon's VAT Calculation Service?

In principle, yes - Sellers are required to provide at least one valid European Union (EU) VAT registration number in order to enroll into the VAT Calculation Service. When enrolled into Fulfillment by Amazon, sellers must provide all EU VAT numbers associated with their business for countries where their inventory is stored. Storing FBA units in a country outside your home-marketplace country will trigger additional VAT registration and reporting obligations for your business. Please consult your local tax advisor for guidance, as necessary.

Will Amazon verify my VAT registration numbers?

Yes, Amazon does take steps to verify a seller's VAT registration number. This can include, but is not limited to, performing checks against the EU's VAT Information Exchange System (VIES). Please allow 1-4 business days for your new VAT registration number to complete the verification process.

Can I enter multiple VAT registration numbers?

Yes, Amazon's VAT Calculation Service allows you to enter multiple European Union (EU) VAT registration numbers as part of the enrollment process. VAT registration numbers can also be provided by visiting the Tax Information section on Seller Central's Account Info page.

Is it mandatory to have a VAT number in the country where I have my default shipping address?

No. However, in order to perform precise tax calculations for your self-fulfilling orders within the EU, you have to provide a VAT registration number for your default ship-from location. It is also important that you provide VAT registration numbers for any Amazon fulfilment locations that you signed up for as part of the FBA program. For a complete overview, refer to the EU VAT Calculation Service Methodology document.

I received a new VAT registration number, where do I enter it?

You can edit, delete or add additional VAT registration numbers by going to the VAT Calculation Service page in your Account Information within Seller Central.

Default Shipping address

What is the default Ship-from address used for?

The default ship-from address is used to determine where you self-fulfil your orders. For a comprehensive overview, please refer to the EU VAT Calculation Service Methodology document.

What is the difference between the ship-from address and the Registered Business Address on my account?

The ship-from address represents the location from which seller-fulfilled goods are dispatched, whereas your registered business address generally represents your primary or officially registered place of business.

What if I have multiple locations that I ship my inventory from?

Currently, Amazon's VAT Calculation Service can only support a single ship-from location for seller-fulfilled items. If you have multiple ship-from locations, there is an ability to update the ship-from location upon shipment confirmation. Please carefully consider whether Amazon's VAT Calculation Service is suitable for your business by referring to the EU VAT Calculation Service Methodology document.

Why do you need the complete address of my warehouse?

In order to perform precise tax calculations, Amazon's VAT Calculation Service requires sellers to provide a full ShipFrom address.

Product Tax Code

What are Amazon-defined Product Tax Codes used for?

A Product Tax Code (PTC) is an Amazon-defined code that has the correct set of VAT rates across the European Union for a specific product category. The PTC is used to determine the appropriate VAT rate to apply to sales of your products. You can select the default PTC that you will use for most of your listings. Additionally, you can set a PTC at the offer listing level.

How do I know which Product Tax Code (PTC) applies to my product?

Our VAT Calculation Service provides sellers with a wide variety of Product Tax Codes (PTCs) to select from. Please contact your tax advisor for assistance on which PTCs best fit your needs.

What do I set my default Product Tax Code (PTC) to?

The default Product Tax Code (PTC) will be applied to all products that do not have an offer listing level PTC assigned. The default PTC should be the PTC that you want to use for most of your listings. Please contact your tax advisor for assistance on which default PTC best fits your needs.

Why will I no longer be able to select ‘A_GEN_NOTAX’ as my default product tax code on VAT Calculation Services?

The product tax code ‘A_GEN_NOTAX’ is intended to be used for products that are outside the scope of EU VAT, for example some gift cards and vouchers. This is explained in more detail on the Seller Central help page for ‘A_GEN_NOTAX’.

You will still be able to choose the most appropriate default product tax code for your circumstances from the full list on Seller Central.

My tax advisor has confirmed that some of my listings are outside the scope of VAT, and I should use ‘A_GEN_NOTAX’ as the product tax code. Am I still able to set this product tax code?

Yes. If you believe that you are listing products that are outside the scope of VAT and ‘A_GEN_NOTAX’ is the correct product tax code for your circumstances, then you can continue to assign the ‘A_GEN_NOTAX’ product tax code to your offers. You will however not be able to set it as your default product tax code as described above.

If you assign a product tax code to one of your listings, this product tax code will override your default product tax code. You can review the details of your listings, and update the product tax code, in the Manage Inventory on Seller Central.

I am currently using ‘A_GEN_NOTAX’ as my default product tax code. Will I be impacted by this change?

Not immediately. If you are currently using ‘A_GEN_NOTAX’ as your default product tax code, this will continue to apply until the next time that you update and save changes to your VAT Calculation Service settings on Seller Central.

However, please note that in the near future we will stop allowing the use of ‘A_GEN_NOTAX’ as the default product tax code. Before we do this, we will give you a 30-day notice to prepare for the change. In the meantime, we encourage you to start verifying whether ‘A_GEN_NOTAX’ is the most appropriate product tax code for your listings.

If you are unsure which default product tax code is right for your circumstances, we recommend you to speak with your tax advisor.

How can I change the Product Tax Code (PTC) of one or more products?

The Product Tax Code (PTC) is a code defined by Amazon that assigns the correct VAT rates to be applied throughout the EU for a specific category of products. The default PTC will be used for all products for which no tax code has been specified. If you wish to provide a PTC other than the default PTC for some of your products, you can set it via Manage Inventory in Seller Central or using an inventory file.

VAT Calculations Report

What is the VAT Calculations Report ?

The VAT Calculations Report provides following information on:

• VAT Calculations performed by Amazon's VAT Calculations Service for sales, refunds and returns
• VAT Invoices created by Amazon's VAT Calculation Service on behalf of sellers using the service
• IT E-invoices submitted to SDI (Sistema di Intercambio) and validation status of e-Invoices
• VAT Invoices amended by Amazon's VAT Calculation Service on behalf of sellers using the service

To access the VAT calculation report, go to Reports > Tax Document Library > Amazon VAT Calculations Tab.

To access the VAT Invoices, go to Reports > Tax Document Library > Amazon VAT Invoices Tab.

You are responsible for the accuracy of your data used for any reporting or tax purposes.

Who can use the VAT Calculation Report and VAT Invoices?

The report and VAT Invoices are available to all sellers actively using Amazon's VAT Calculation Service. For multi-user accounts, the user account must have Tax Settings permissions set to View & Edit.

How is the VAT Calculation Report different from the VAT Transactions Report?

The VAT Transactions Report is monthly report that provides detailed information on transactions for sales, returns, refunds, cross border inbound, and cross border fulfilment for all transactions.

The VAT Calculation Report provides only details regarding VAT calculations and invoices performed and created by the VAT Calculation Service. The VAT Calculation Report does not report on FBA inbound shipments and fulfilment center transfers. More information on the VAT Transactions Report.

How soon will VAT Calculation data and invoices be available in the VAT Calculations Report?

Calculation data and invoices will be available in the VAT Calculations Report three days after the order has been shipped.

How soon will invoices be available in the Amazon VAT Invoices?

VAT invoices will be available in the Amazon VAT Invoices three days after the order has been shipped.

What data fields are available in the VAT Calculations Report?

You can find the field names, definitions and examples here.

What are the different transactions contained in VAT Calculations Report?

VAT Calculations: The VAT Calculations Report provides following information on:

• VAT Calculations performed by Amazon's VAT Calculations Service for sales, refunds and returns
• VAT Invoices created by Amazon's VAT Calculation Service on behalf of sellers using the service
• IT E-invoices submitted to SDI (Sistema di Intercambio) and validation status of e-Invoices
• VAT Invoices amended by Amazon's VAT Calculation Service on behalf of sellers using the service

Invoices: The Invoices Report provides all the information about invoices and receipts for a given requested period. The VAT Invoices will be separate PDFs in a zipped folder for optimal downloading.

Will VAT Calculation Service comply with the e-invoice requirement in Italy 2019?

Yes. If you have activated Amazon’s VAT Calculation Service, Amazon will create the invoice in XML-PA format and submit directly to the Tax portal, Sistema di Interscambio (SDI), on your behalf. For more information, refer to the EU VAT Calculation Service Methodology document.

What does it mean to submit invoices (and credit notes) to SDI?

SDI is a portal owned and operated by the Italian government. All in-scope invoices must be submitted to SDI in a specific XML format. Invoices will go through an automatic authentication process, after which the submitting system will receive an acceptance receipt or rejection notice. SDI sends accepted invoices directly to the customer’s SDI mailbox.

When will Amazon submit invoices to SDI?

VAT Calculation Services creates and submits the invoice data via XML to the SDI as soon as that data is ready. The SDI then reviews this information and sends the official invoice directly to the customer.

I use VAT Calculation Service; do I need to provide any other data?

You will need to provide your SDI account ID and certified email address in order for VAT Calculation Service to create and send an XML invoice on your behalf. To provide Amazon with your SDI information:

1. In Seller Central, go to Settings and click Account Info.
2. Under Tax Information, click VAT/GST Registration Number.
3. Click Edit on your Italian VAT Registration Number.
4. Enter your SDI account ID and certified email address.
5. Click Save.

What happens if I do not provide SDI account ID and certified email address?

The VAT Calculation Service uses your SDI Account ID and Certified Email Address information as an indicator that you require an XML invoice to be created. Without this information a PDF Invoice will be sent to your customer.

Where can I download the official XML invoice?

You will need to go to your personal Tax portal on the Italian Tax Authorities website to download the official XML invoice. Please note Amazon will provide a duplicate PDF document and duplicate XML invoice submitted to SDI for each order in Seller Central, but note this is not an official invoice. You can only receive the official invoice from the Tax portal.

How do I obtain SDI Account ID and Certified email address?

For more information on how to obtain SDI account ID and certified email address, visit the Interchange System website directly.

What will happen when there is a return order; will Amazon submit the credit note through SDI?

Yes. Amazon will create a credit note in XML-PA format and submit directly to SDI.

What do I do if a customer asks me for an invoice?

If you receive an invoice request from a customer, check whether the customer has registered the VAT number or tax code in their Amazon account. If the customer is an Amazon Business customer, the VAT Calculation Service will automatically issue the invoice.

In which cases does the VAT Calculation Service issue a receipt?

The VAT Calculation Service issues a purchase receipt for the following use cases:

• If a Seller dispatches goods from one of our European fulfilment centers but has not provided a valid VAT registration number in that jurisdiction and for those orders a downloadable VAT invoice badge was granted.
• For intra-EU B2C sales where a Seller does not have a Union-OSS registration or has not provided a VAT number in the EU country of destination and for those orders a downloadable VAT invoice badge was granted.
• If a Seller self-fulfills their goods from outside the EU into the EU.
• If a Seller sells under their Italian VAT registration number to Customers who have not provided a VAT registration number or a Codice Fiscal in their Amazon account.

What should I do if a customer asks me to change the invoice?

If you are contacted by a customer to change the invoices issued by the VAT Calculation Service, follow the below steps:

1. If customer requested change in ‘Billing address’ and/or ‘Business Name/ Buyer Legal Name’ then ask customer to contact to Amazon Customer Support to get invoice corrected
2. If customer requested change in invoice that is not related to ‘Billing address’ and/or ‘Business Name/ Buyer Legal Name’ then you will need to cancel the invoice issued by the VAT Calculation Service via a credit note and issue a new invoice according to the customer's requests

What should I do if I have issued an invoice for an order for which the invoice has already been issued by the VAT Calculation Service?

If two invoices have been issued for the same transaction, you will need to cancel the invoice you issued by means of a credit note.

How do I know if the VAT Calculation Service has issued an invoice or receipt for a customer?

You have at your disposal the VAT Calculation Service Report in which you will find the information starting from the third day after the shipment. Before the three days, the following applies: If the customer is an Amazon Business customer (you can check it from the order detail where you will find evidence of the customer type), the invoice will be issued by the VAT Calculation Service. If the order does not have the Amazon Business badge on the order page and the customer has requested the invoice, you will need to check with the customer if they have entered the tax code or VAT number in their Amazon account. If you have entered this information, the VAT service has automatically issued an invoice. If you have not entered this information, the VAT service has issued a purchase receipt.

Why is my order excluding VAT if the buyer is not an Amazon Business customer?

There are two different types of customer accounts:

• Standard Customer Account: The customer can save their VAT number within the account. When a VAT number is entered in the account, the VAT transaction can be excluded if the requirements are met. However, the customer will not see the excluded VAT price on the product detail page as they are not registered as an Amazon Business customer, nor will they have access to all the exclusive benefits for Amazon Business customers.
• Amazon Business Customer Account: Account with business features (customized spending limits, display of net VAT prices, invoice management, etc.). Amazon Business customers can view prices excluding VAT on the product detail page and can benefit from offers reserved for the business. The transaction can exclude VAT if the requirements are met. You can find more information about the Amazon Business Customer Account here.

What is the list of special EU territories which fall outside the scope of EU VAT rules?

The table below provides a list of territories where the EU VAT rules do not apply. Therefore, VAT Calculation Services (VCS) treats shipments to these territories as VAT exempt for exports.

Territories	VAT rule
(a) | the Canary Islands;	Tax Exempt
(b) | the Åland Islands;	Tax Exempt
(c) | the Channel Islands( Jersey/Guernsey)	Tax Exempt
(d) | the Island of Heligoland;	Tax Exempt
(e) | the territory of Büsingen;	Tax Exempt
(f) | Ceuta;	Tax Exempt
(g) | Melilla;	Tax Exempt
(h) | Livigno;	Tax Exempt
(i) | Campione d'Italia;	Tax Exempt
(j) | the Italian waters of Lake Lugano	Tax Exempt
(k) | the French overseas departments;	Tax Exempt

Hungarian Real Time Invoice Reporting E-invoicing Requirements

What is Real Time Invoice Reporting in Hungary?

In Hungary (HU) there is a requirement to report all Hungarian all sales invoices if they are issued according to the Hungarian invoicing rules to the Hungarian Tax Authority in real-time. This includes all sales from your Hungarian VAT registration unless it is registered under the Mini-One-Stop-Shop (MOSS) or Union-One-Stop-Shop (UOSS) reporting schemes.

For my HU sales, will I still receive a PDF invoice?

Yes. For all sales from your HU VAT Registration, Amazon will continue to create a PDF invoice. This will be your original invoice for VAT purposes. Additionally Amazon will create an XML file with your invoice data and submit this in real-time to the tax authority.

How do I setup my E-invoicing Credentials?

E-invoicing credentials (officially called "The Technical User") must be created in the Hungarian Tax Authority's Online Invoicing System (also called NAV) by the Primary User (a person having access to the VAT payers account). The technical user is not a living person but just a machine identification mode that is necessary for the communication between the invoicing program issuing an invoice and the server of the Hungarian Tax Authority.

Once you have created the Technical User credentials in the Tax Authority’s system, you will need to add them directly in Seller Central along with your HU VAT Registration. This enables Amazon to report your invoices real-time through our direct connection with the tax authority’s system. For more information, go to : https://onlineszamla.nav.gov.hu/home

Why does Amazon require E-Invoicing Credentials for my HU VAT Registration Number?

Amazon requires you to provide your Technical User credentials, so it can submit your Hungarian sales on your behalf and in real-time to the Hungarian Tax Authority. This is a mandatory tax obligation in Hungary.

What is a Technical User ID and Password?

Your NAV Technical User name is a 15 character long name and is part of your Technical User credentials. The associated password should be at least 8 characters long and can only contain upper or lower case alphanumeric characters of the English alphabet. Both pieces of information are created in the NAV system directly and should be entered into Seller Central only after.

What is a Signature Key?

The XML Signature Key is also generated during creation of Technical User credentials in the Hungarian Tax Authority’s Online Invoicing System. The signature key is 32 characters long containing uppercase and lowercase letters of the English alphabet and numeric values having a hyphen at the 3rd and the 8th character. Example signature key = 3c-a144-53k3ec1a3c1621NG3MJTKGQL.

What is an Exchange Key?

The XML Exchange Key is also generated during creation of Technical User credentials in the Hungarian Tax Authority’s Online Invoicing System. The exchange key is 16 characters long containing uppercase and lowercase letters of the English alphabet and numeric values.

Example for exchange key: d84167HCFQS83WRP.