How does Amazon handle VAT collection for EU sellers?

Last updated: 2026-08-02·Verified: 2026-08-02

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📋 Direct Answer

Amazon's VAT handling depends on your setup: (1) FBA sellers: Amazon may act as deemed supplier in some cases and collect VAT on B2C sales, (2) FBM sellers: you must collect and remit VAT yourself, (3) IOSS sellers: Amazon can collect VAT on low-value imports under €150. You still need your own VAT registration and OSS filing. Amazon provides VAT calculation service (VCS) for an additional fee.

2
Requirements
VCS: additional fee
Est. Total Cost
Setup 1-2 weeks
Timeline

Item by Item

RecommendedAmazon VAT Calculation Service (VCS)
Per-sale fee1-2 weeks
  1. 1Enroll in Amazon VCS in Seller Central
  2. 2Amazon calculates correct VAT rate per transaction
  3. 3VAT collected shown on buyer invoices
RequiredSelf-Collection (FBM)
N/AImmediate
  1. 1FBM sellers must collect VAT themselves
  2. 2Set correct VAT rate per country in Shopify/your platform
  3. 3File OSS returns for all EU B2C sales

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Sources

  • Amazon Seller Central VAT guidance
  • Amazon VCS documentation

Disclaimer: This page is for informational purposes only and does not constitute legal or tax advice. Consult a professional for your specific situation.