Amazon Business Supplier Programme Requires VAT Registration and UK Internal Market Compliance by July 2025
From 31 July 2025 Amazon Business sellers using FBM must register a separate VAT number for each ship‑from address and follow the UK Internal Market Act “green lane” process for NI‑GB shipments. Failure to comply will auto‑bind sellers to new contract terms and may suspend Business‑only features.
Overview
Amazon is tightening the rules for its UK Business Supplier Programme, with new compliance obligations taking effect on 31 July 2025. Sellers who fulfil Amazon Business orders using the Fulfilled‑by‑Merchant (FBM) model must now hold a valid VAT registration for every warehouse or ship‑from address they use, and they must follow the UK Internal Market Act “green lane” procedures for shipments that move from Northern Ireland to Great Britain. Continuing to use the programme after the deadline will automatically bind sellers to the updated terms, making the changes critical for any merchant that wants to keep serving Amazon Business buyers.
Key Points
- VAT registration per ship‑from location — A separate, active VAT number is required for each physical site from which FBM orders are dispatched.
- Green‑lane compliance for NI‑GB shipments — Goods sent from Northern Ireland to England, Scotland or Wales must meet the post‑Brexit “green lane” documentation and standards rules.
- Automatic acceptance of new terms — No extra click‑through is needed; using the Business Supplier Programme after 31 July 2025 signals agreement with the revised contract.
- Contractual binding — The VAT and green‑lane conditions become enforceable contract clauses, not merely policy recommendations.
- Impact limited to FBM sellers — Fulfilled‑by‑Amazon (FBA) participants are exempt from the ship‑from VAT rule, but any merchant‑fulfilled Business order is subject to the new requirements.
How the New Requirements Work
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Validate VAT for every fulfillment site —
- Example: A seller with a London warehouse (VAT GB123456789) and a Manchester third‑party logistics (3PL) centre (VAT GB987654321) must ensure both numbers are active and correspond to the exact addresses used for dispatch. If the Manchester VAT registration lapses, the seller loses access to Amazon’s VAT Calculation Service for orders shipped from that site.
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Apply the green‑lane framework to NI‑GB routes —
Analysis & Recommendations
Why This Matters
Sellers with multiple warehouses or 3PL sites must ensure each location has an active GB‑VAT number by 31 July 2025 or lose Business order eligibility. NI‑GB shipments now require a green‑lane declaration, otherwise shipments may be diverted to the red lane, incurring delays and extra customs checks.
Key Takeaways
- A distinct, active VAT registration is required for every FBM ship‑from location starting 31 July 2025.
- NI‑GB Business orders must include a green‑lane declaration and UK safety certification per the Internal Market Act.
- FBA sellers are exempt from the ship‑from VAT rule, but all merchant‑fulfilled Business orders are subject to the new terms.
- Processing any Business order after the deadline automatically accepts the revised contract without an extra click‑through.
Recommended Actions
- →In Seller Central, go to Settings > Tax Settings and add or verify a VAT number for each warehouse/3PL address listed under Fulfilled‑by‑Merchant.
- →Create a SOP in your operations folder that attaches a ‘green lane’ PDF to every NI‑GB Business order; include a checklist of product classificatio...
- →Set calendar alerts for each VAT registration expiry (e.g., 30 days before) and schedule renewal tasks in the ‘Compliance’ project board.
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