Overview

Amazon is updating the way it determines a seller’s establishment status for VAT on B2B transactions across the EU and the United Kingdom. The new method gives tax‑authority records priority over the details sellers enter in Seller Central, which can flip a seller from “established” to “non‑established” in a given market. Sellers need to verify their registration data now, because the change directly influences whether local VAT is added to B2B invoices and who bears the tax‑reporting responsibility.

Key Points

• Tax‑authority data overrides self‑reported info — Amazon will match the VAT number and registered address you provide with official registers; any mismatch will be resolved in favor of the authority’s record.
• Automatic re‑classification of establishment status — If the authority’s data shows you are not established in a country, Amazon will instantly treat you as non‑established for that market.
• Reverse‑charge mechanism activates — For sales where you are deemed non‑established, Amazon stops adding local VAT; the buyer must self‑assess the tax on their return.
• Scope includes UK and all EU member states — The rule applies wherever Amazon offers VAT calculation, covering the United Kingdom, the 27 EU countries, and any additional jurisdictions that use Amazon’s tax service.
• Potential ripple effects on registration thresholds — A shift to non‑established status may alter your obligations for VAT registration, filing frequency, and eligibility for simplified schemes in the affected country.

These points reshape the tax landscape for Amazon sellers who rely on the platform’s automated VAT calculations. By aligning the seller’s status with official registers, Amazon aims to reduce mismatches that could trigger compliance issues for both sellers and buyers.

How Establishment Status Is Determined

1. Collect seller‑submitted VAT details — Amazon pulls the VAT number and business address you entered in Seller Central, e.g., a French VAT ID linked to a Paris office.
2. Query national tax registers — Amazon queries the corresponding country’s public or paid database to retrieve the official registration record for that VAT number.