Overview

Amazon sellers who operate in the United Arab Emirates (UAE) or ship to customers there must account for the country’s 5 % Value Added Tax (VAT) on Amazon‑imposed fees. Since the UAE’s VAT law treats remote‑service providers—such as Amazon—as taxable entities, the marketplace adds the tax to subscription, referral and other selling‑related charges unless the seller supplies a valid UAE VAT identification number (VAT ID). Understanding this rule helps sellers avoid an unnecessary surcharge on their operating costs.

Key Points

• 5 % VAT on fees — Amazon automatically applies a 5 % tax to monthly subscription fees, referral fees and other Amazon‑charged services for sellers who have not entered a UAE VAT ID.
• Rule effective 1 Jan 2018 — The requirement has been in force since the start of 2018, meaning every active seller should already be subject to it unless they are exempt.
• VAT exemption via VAT ID — Sellers registered for VAT in the UAE can eliminate the 5 % charge by uploading their Tax Identification Number (TIN) in Seller Central.
• Non‑resident sellers also covered — Even sellers based outside the UAE are liable for the tax if they have not provided a UAE VAT ID; Amazon will collect and remit the amount on their behalf.
• Compliance is seller‑driven — Amazon’s system does not verify the validity of the VAT ID; sellers remain responsible for ensuring their registration is correct and up‑to‑date.

How UAE VAT Works for Amazon Sellers

1. VAT registration trigger — When a seller’s account lacks a recorded UAE VAT ID, Amazon treats the seller as a non‑tax‑registered remote service recipient and adds 5 % VAT to each billable fee.

   • Example: A seller with a monthly subscription of AED 150 will see a charge of AED 157.50 (AED 150 + 5 % AED 7.50).

2. Tax calculation and remittance — Amazon calculates the VAT amount on every invoice, includes it in the payment request, and forwards the collected tax to the UAE Federal Tax Authority on the seller’s behalf.