VAT Information Notice
VAT rates and thresholds shown are based on EU regulations and may change. Rates are subject to change by member states. This is general information only - consult a VAT specialist or your accountant for compliance advice. Information current as of January 2025.
Why Amazon Is Asking About VAT
Amazon must verify that sellers on EU marketplaces are VAT compliant. This isn't optional — it's EU law. If you can't prove compliance, Amazon will:
Suspend listings
Hold payouts
Close account
When Do You Need EU VAT Registration?
You MUST Register If:
- ⚠You store inventory in an EU country (FBA warehouse)
- ⚠You sell B2C to EU consumers over €10,000/year total EU sales
- ⚠You're based in the EU (must register in your home country)
- ⚠You use Pan-European FBA (inventory in multiple countries)
You Might NOT Need It If:
- ✓You only sell B2B with valid VAT numbers (reverse charge)
- ✓You ship directly from outside EU (no EU inventory)
- ✓Under €10,000 B2C EU sales and no EU inventory
FBA Warehouse = VAT Registration
Where Amazon Stores Your Inventory
If you use FBA (Fulfillment by Amazon), your inventory is stored in Amazon warehouses. You need VAT registration in each country where inventory is held:
Check Amazon Seller Central → Inventory → Inventory Planning to see where your stock is located.
Your Options
Option 1: Register for OSS
One-Stop-Shop lets you register in ONE EU country and report all EU B2C sales there. Simplifies compliance but doesn't cover FBA inventory storage requirements.
Best for: Sellers shipping directly from one location without FBA
Option 2: Multiple Country Registrations
Register for VAT in each country where you have inventory. More complex but required for Pan-European FBA.
Best for: Pan-European FBA sellers
Option 3: EU Company + Provider
Set up an Estonian company, get VAT-registered through one hub, use a provider like Xolo to manage compliance. Clean structure for growing sellers.
- ✓EU business entity
- ✓VAT registration included
- ✓Accounting & filing handled
Timeline to Get Compliant
Assess Your Situation (Day 1)
Check where your inventory is stored. Review your sales by country. Determine which VAT registrations you need.
Choose Structure (Week 1)
Decide: OSS only, multiple registrations, or EU company. Get quotes from providers.
Apply for Registration (Week 2-4)
VAT registration takes 2-8 weeks depending on country. Germany is notoriously slow. Start early.
Update Amazon (Upon Approval)
Add VAT numbers to Seller Central. Provide proof of registration. Amazon verifies and removes restrictions.
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
