Amazon's VAT Services Program is Ending This October – Here’s What You Need to Know

Amazon's VAT Services on Amazon program is officially ending on October 31st, 2024. This significant change will impact thousands of sellers across Europe, making it crucial to act now and ensure a smooth transition to a new service provider.

With VAT Services winding down and some tax compliance services exiting the program entirely, VAT compliance in Europe is set to become more challenging. However, with the right strategy, these changes can be navigated without unnecessary disruption to business operations.

Who Will Be Affected?

This change affects any seller who relies on Amazon's VAT Services to manage VAT obligations in Europe. The end of this program necessitates transitioning to another service provider.

Value Added Tax (VAT) is a tax imposed on goods brought into EU countries from non-EU countries. It is typically charged at the same rate as the domestic VAT in the destination country. (Source: Accel Club for Carbon6)

PRO TIP

The good news? Sellers can continue working with their current provider outside the Amazon program, avoiding the unnecessary costs and complications that might arise from switching agencies.

What to Expect Next

Transition Timeline: The VAT Services on Amazon program will end on October 31st, 2024. Before that date, current tax providers will reach out to reactivate user accounts and onboard them onto their platform if needed.
VAT Filing Continuation: Existing providers will manage VAT filings until the September 2024 filing period. From October onwards, they will handle all future filings directly.
Cost of Services: Providers will offer VAT filing services at a set price, excluding any VAT fees for the remainder of the year. It is important to understand these costs and ensure clarity on the pricing structure.

Document Access: Sellers can still download all VAT documents, including VAT registration certificates and proofs of filing, from Seller Central until August 31st, 2025. After that date, new VAT returns will be available on the provider’s platform.

Urgency of Action – Time Is Running Out

This transition is critical, and it is essential to have everything in place well before the October 31st deadline. Delaying until the last minute could lead to disruptions in VAT compliance, which could have serious consequences for business operations.

To stay updated with more information as this situation evolves, subscribe to the Carbon6 top reads newsletter. To talk about how to future-proof your business for the upcoming changes, book a call with a member of the Carbon6 team here.