Overview

Amazon monitors sellers operating across EU marketplaces to ensure compliance with Value Added Tax (VAT) registration requirements. If Amazon identifies that you're selling in EU countries without providing valid VAT registration numbers, you'll receive a VAT requirement notification on your Account Health dashboard. However, sellers who qualify for the EU's Small and Medium Enterprise (SME) VAT exemption can request relief from this enforcement action.

Key Points / What Sellers Need to Know

• VAT requirement notifications are enforcement actions — Amazon flags accounts selling in EU countries without valid VAT registration numbers, which can lead to listing restrictions or account-level consequences if unaddressed.
• SME VAT exemptions exist for small sellers — The EU offers a VAT exemption scheme for small and medium-sized enterprises that fall below certain revenue thresholds, meaning qualifying sellers don't need to register for VAT in every country where they make sales.
• You need a valid SME exemption number — To request relief, you must hold an SME exemption number ending in "EX" issued by the relevant EU tax authority.
• Sales thresholds apply — Your total EU-wide sales must remain under €100,000, and your sales in each individual EU country must stay below that country's specific SME threshold.
• Exemption must be active — Your SME status needs to be currently active for the specific countries listed in your VAT requirement notification.

Eligibility Criteria

To qualify for SME VAT exemption relief on Amazon, sellers must meet all of the following criteria simultaneously. First, you must have active VAT requirement notifications showing on your Account Health dashboard — this confirms Amazon has flagged your account. Second, your business must be established in an EU country, though it's worth noting that certain countries may be excluded from the scheme. Third, you need to hold a valid SME exemption number that ends in the suffix "EX," which is the standard format for EU SME VAT exemption identifiers. Finally, your sales volumes must remain within the prescribed limits: total EU cross-border sales under €100,000 annually, combined with individual country sales below each nation's specific domestic threshold.