Amazon Moves UK and EU Seller Services to New Entity, Altering VAT Treatment on Selling Fees
Amazon has moved all UK and EU seller contracts from Amazon Services Europe S.à r.l. (ASE) to a new Luxembourg entity, Amazon Europe EU S.à r.l. (AEU). Invoices are now issued by a local AEU branch and domestic VAT (e.g., 20% France, 21% Netherlands) is applied directly to selling fees.
Overview
Amazon has finished a large‑scale reorganization of its European seller services, moving all United Kingdom and EU seller contracts from the Luxembourg‑based Amazon Services Europe S.à r.l. (ASE) to a newly created entity, Amazon Europe EU S.à r.l. (AEU). The shift does not affect day‑to‑day selling activities, but it changes the invoicing source and the way value‑added tax (VAT) is applied to Amazon’s selling fees for sellers located in specific countries.
Key Points
- New legal entity — All seller services that were previously delivered by ASE are now provided by AEU, a separate Luxembourg‑registered company.
- Contract updates — Every seller agreement, policy document and terms of service that mentioned ASE now refer to AEU, requiring sellers to acknowledge the new entity.
- Invoice origin change — Sellers in the UK and certain EU member states will start receiving invoices from an AEU branch operating in their own country instead of from Luxembourg.
- Local VAT application — Because invoices are issued by a local branch, the VAT rate of the seller’s country will be applied directly to Amazon’s selling fees.
- No impact on marketplace functions — Account login, product listings, pricing, customer reviews and the amount of fees charged remain exactly the same.
How the New Invoicing Structure Works
- Determine seller registration country — Amazon checks the legal address of the seller’s business. For example, a UK‑based seller registered in England will be assigned to the AEU UK branch, while a German seller incorporated in Berlin will be linked to the AEU Germany branch.
- Generate invoice from local branch — The appropriate AEU branch creates the monthly invoice, listing marketplace fees, fulfillment fees and any other service charges. A UK seller will see “Amazon Europe EU S.à r.l. – United Kingdom branch” on the document.
- Apply domestic VAT rate — The invoice reflects the VAT percentage required by the seller’s jurisdiction. A French seller will see 20 % French VAT added to each fee line, whereas a seller in the Netherlands will see 21 % Dutch VAT.
Analysis & Recommendations
Why This Matters
The shift means sellers will see VAT on each fee line, increasing cash outflow for non‑VAT‑registered sellers and requiring accounting system updates to capture the new vendor name and tax amounts.
Key Takeaways
- All UK and designated EU seller agreements are now with Amazon Europe EU S.à r.l. (AEU) instead of ASE.
- Invoices are generated by a local AEU branch, applying the seller’s domestic VAT rate (e.g., 20% French VAT, 21% Dutch VAT).
- Sellers outside the listed UK/EU jurisdictions continue receiving Luxembourg‑based invoices with the previous VAT handling.
- A UK seller without a VAT number will now incur an additional 20% VAT on each marketplace fee.
Recommended Actions
- →In QuickBooks or other accounting software, replace vendor "Amazon Services Europe" with "Amazon Europe EU – [Country] Branch" as shown on the new ...
- →Log into Seller Central → Payments → Transaction View and confirm the VAT rate and country code on the latest AEU invoice.
- →If the invoice shows an incorrect VAT rate or country, open a case in Seller Central > Help > Contact Us within 30 days.
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