Amazon VAT services to end

Amazon’s popular VAT Services Program, which has assisted countless online sellers worldwide in meeting their tax obligations, is set to discontinue. This announcement has left many affected businesses scrambling to find alternative solutions. 

Key points

• Timeline: The Amazon VAT Services Program will remain operational until October 31, 2024. After this date, sellers will need to manage their VAT compliance directly or through a chosen service provider. 

• Impact on compliance: The discontinuation of the program will have a substantial impact on the Amazon seller community. Vendors will need to find new service providers to handle their VAT obligations in the EU. 

• Amazon’s role: Amazon will continue to submit VAT returns for the tax period ending September 30, 2024. 

• Next Steps: Sellers, particularly those not established in the EU, should begin searching for suitable VAT service providers. It is crucial to choose a provider with experience in managing VAT compliance in the desired countries and to ensure timely submission of necessary documentation to tax authorities. 

Way forward

Whilst choosing to leave your tax compliance in the hands of tax software providers might seem like the easiest option, it is important to consider that such solutions usually do not include any bespoke advisory services, particularly in the event of a query from the Tax Authorities. Moreover, the systems are often not capable of handling more complex tax issues. As a consequence, many businesses are opting for bespoke advice such as that provided by 4 Eyes Ltd and its international partners.