Important changes to VAT on Amazon seller fees starting August 1st, 2024

by | Jun 18, 2024

Effective August 1, 2024, there will be a change in the service provider for selling services from Amazon Services Europe S.à r.l. (ASE) to Amazon EU S.à r.l. (AEU). This shift will affect the VAT treatment of Amazon seller fees.


What you need to know


  1. Change in service provider: Starting August 1, 2024, all services previously provided by ASE, including Selling on Amazon, Fulfilment by Amazon, and other related services, will now be supplied by AEU. Consequently, all agreements, policies, and terms that currently reference ASE will be updated to reflect AEU.
  2. Invoice adjustments: Post-August 1, 2024, invoices will be issued by AEU instead of ASE. These invoices will include updated details such as:
  • Amazon entity name
  • Amazon address
  • Amazon VAT Registration Number (VRN)
  • Applicable local VAT rates
  1. Impact on different sellers:
  • Sellers in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium and Sweden: Invoices will be issued by the AEU branch in your country of establishment. Local VAT rules will apply, meaning VAT will be charged on Amazon fees as required by law. This VAT can typically be recovered through your usual VAT return process. Consult your tax advisor for more details.
  • Sellers in Luxembourg and other countries: Invoices will be issued by the AEU head office in Luxembourg, with no changes to how VAT is currently applied on Amazon fees.
  1. Changes to funds disbursement: For sellers in the specified nine countries, disbursement amounts will change due to the application of local VAT on Amazon fees. However, there will be no change to the disbursement cycle or the currency you receive funds in.
  2. Currency for invoice payments: The currency in which you pay your invoices remains unchanged. Invoice payments will continue to be deducted in your local currency as per existing processes.


Specific scenarios


  • Non-VAT registered sellers: If your business is below the VAT threshold and not registered for VAT, there will be no change in how VAT is applied to your Amazon fees.
  • Sellers operating in multiple countries: If you have a valid VAT registration in a country where AEU has a branch but also sell in other countries, the VAT rate of your country of establishment will be applied, provided you have submitted a valid VAT registration number in Seller Central.


Next steps


Review and update agreements: Make sure your online agreements on Seller Central are updated to reflect the change to AEU.

Consult your tax advisor: For tailored advice on recovering VAT and understanding the impact of these changes on your business.


Additional information


For more detailed information, including changes to the Amazon Services Europe Business Solutions Agreement (BSA), you can access an English version of the BSA with highlighted changes in PDF format. Translations in various languages will be available from August 1, 2024. Details from the official Amazon page can be found here.

If you have any questions or need further assistance, please contact your Cottons advisor. We are here to help you navigate these changes and ensure your business remains compliant and efficient.


Stay informed and compliant


This update aims to ensure that your business is well-prepared for the upcoming changes. We are dedicated to supporting you through these transitions and providing the necessary guidance to keep your operations smooth and compliant.

Please do not hesitate to contact us regarding how any of these changes may affect you.


Disclaimer: This blog post is intended to provide general information and does not constitute legal or tax advice. Please consult your tax advisor for advice specific to your business situation.


Ready to connect?

If you’re curious about how we can help you, please reach out: our team is very keen to hear from you.

Xero Platinum partner logo
ICAEW logo
ACCA logo
Quickbooks logo