Amazon has announced that it will end its VAT Services on Amazon programme on October 31, 2024. As a seller, it’s crucial to take control of the situation and ensure your business remains compliant. Follow this complete guide from TBA’s tax compliance experts to transfer your VAT provider smoothly.

Who Will This Affect?

1. Sellers currently using VAT Services on Amazon for VAT registrations, managing VAT filings and returns, and notifications of VAT liabilities.
2. Sellers considering using VAT Services on Amazon in the future.

Key Considerations for Sellers Currently Using VAT Services on Amazon

Now is the time to carefully reconsider your choice of tax service provider. Here are the key qualities to look for:

1. Reliability: Ensure your provider has a proven track record of consistent and dependable service.
2. Timely Communication: Your provider should offer clear and prompt updates, especially during this transition.
3. Experience & Expertise: A deep understanding of VAT regulations across different countries is essential.

Checklist – Before You Transfer Your Tax 

Before you sign on-to a new VAT service with your provider, it’s crucial to assess your current situation. TBA has created a checklist to help you determine which services you will need:

• What VAT numbers do you have in which countries?
• Do you want to keep the VAT numbers or not?
• Check the status of your VAT numbers: Are they still valid?
• Ask for proof of filing: When was your VAT last filed? When should it be filed next?
• Are there any outstanding liabilities?
• If you have VAT numbers in fiscal rep countries: Who holds your Power of Attorney (POA)?

Navigating the Transfer Process

If you are selling in Countries Requiring Fiscal Representation (PL, ES, IT, FR):

The transfer process may be more complex, but it is still manageable. In some cases, it might be more beneficial to re-register rather than transfer existing VAT numbers. (If you are based in any EU countries, this will not apply to you).

If you are selling in Non-Fiscal Representation Countries:

You will need to determine your filing frequency (monthly, quarterly, annually). If you’re considering switching tax providers, decide on the last filing period with your current provider before making the switch. This process is generally straightforward and can be completed within a month.

Considering Closing Your EU Business?

If you’re planning to exit the EU market, the most compliant option is to deregister your VAT numbers. Failure to do so could result in penalties, which in some countries (such as the UK) are calculated daily.

VAT Registrations in Progress?

If your VAT registration is already with tax authorities, it’s advisable to wait until the process is complete before making any changes. However, if your registration is still pending, you can switch providers at any time.

For sellers looking to enter the EU market or seeking more information about VAT numbers and compliance services, contact TBA today at info@tbaglobal.com.

Why Choose TBA for Your VAT Transfer?

TBA is a London-based tax consulting agency with over six years of experience working with Amazon sellers. As former tax providers for VAT Services on Amazon, we understand VAT compliance intricacies. We offer tailored advice to ensure your business remains compliant during this transition and beyond.

Tax compliance isn’t one-size-fits-all. If you have doubts about your current provider, it might be time to switch. Contact us today to ensure a smooth VAT transfer and continued compliance.