Overview

Amazon may be required to charge value added tax (VAT) on certain service fees it collects from sellers, depending on where your business is located and the tax rules in that jurisdiction. These "remote services" tax rules apply primarily to Selling on Amazon (SoA) listing fees and advertising fees, and understanding them can help sellers avoid unexpected charges and ensure proper tax compliance.

Key Points / What Sellers Need to Know

• Remote services taxes apply to listing and advertising fees — Many countries now require non-resident service providers like Amazon to collect VAT, GST, or similar transaction taxes on electronically supplied services (ESS), which typically includes Selling on Amazon fees and Sponsored Ads fees.
• FBA fees are generally exempt — Fulfillment by Amazon fees and related logistics charges typically fall outside the scope of remote services tax rules in most jurisdictions.
• Your VAT ID can reduce or eliminate the tax charge — In many countries, providing a valid VAT or tax identification number to Amazon means the platform will not charge VAT on your service fees, shifting the obligation to you under a reverse-charge mechanism.
• Your business location determines taxability — Amazon uses the business address and account details you provide in Seller Central to determine which tax rules apply to your fees.
• Rules vary significantly by country — Some jurisdictions tax both SoA and advertising fees, others tax only one type, and some do not require tax collection from registered businesses at all.

How Remote Services Taxation Works

Remote services tax rules have been adopted by a growing number of countries worldwide. These rules generally target "electronically supplied services" (ESS), defined as services delivered over the internet that are automated, require minimal human intervention, and would be impossible to provide without information technology. When Amazon provides listing services or advertising to sellers whose businesses are located in jurisdictions with these rules, Amazon may be legally required to collect and remit VAT on those fees. The specific tax treatment depends on the country where your business is registered, the type of fee being charged, and whether you have provided a valid tax identification number.