Overview

Starting January 1, 2026, Amazon will automatically deduct 15% value added tax from sales made by resident sellers who do not have valid VAT registration number on file. The change ensures compliance with local tax regulations, and sellers should update tax settings immediately to avoid unexpected revenue deductions.

Key Points

• Automatic 15% VAT deduction — Amazon withholds 15% VAT directly from sales proceeds for sellers lacking valid VAT registration starting January 1, 2026
• Compliance-driven enforcement — Policy implements local tax regulations, signaling broader tax compliance push across Amazon's seller ecosystem
• Legal name matching required — Legal name in Amazon account must exactly match name on VAT registration certificate, including local-language versions
• More details coming — Amazon will share additional regulatory information in coming weeks with further guidance

How VAT Deduction Will Work

• Amazon as collecting agent — Amazon collects VAT on behalf of sellers who haven't registered their VAT number
• 15% rate applied automatically — Direct reduction in seller payouts for accounts missing registration information
• Existing obligation enforcement — Not new tax from Amazon, but enforcement of existing legal tax obligations
• Valid registration exempts — Sellers with valid VAT registration number on file see no changes

What Sellers Must Do Now

• Verify tax settings — Log into Seller Central and navigate to tax settings to verify or add VAT registration number
• Exact name matching — Legal name in Amazon account must exactly match name on VAT registration certificate
• Local language consideration — If certificate displays legal name in local language or script, Amazon account must reflect same name
• Start registration process — Sellers without VAT registration should begin process immediately to avoid deadline rush