Effective August 1, 2024, Amazon.co.uk will begin providing services from its new UK entity (Amazon Services Europe S.àr.l (AEU)) instead of its EU entity (Amazon EU S.à r.l (ASE)). This change impacts how VAT is charged and reported for Amazon fees.
According to the announcement from Amazon Services Europe:
All agreements, policies, terms, and conditions referring to ASE will be updated to AEU.
Invoices issued by Amazon will be issued by AEU instead of ASE after August 1, 2024.
Businesses established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, or Sweden will be invoiced by the AEU branch in their country of establishment. Local VAT rules will apply, and VAT will be deducted from Amazon fees.
Businesses outside these countries will be invoiced by the AEU head office in Luxembourg, and there will be no changes to how VAT is applied to Amazon fees.
For detailed information, please refer to the official Amazon update email:
To accommodate these changes, you must map Amazon fees appropriately within Taxomate. Here's how to update your VAT mappings for Amazon fees before and after August 1, 2024:
Go to quick setup by clicking here.
Locate "Amazon Fees (Before August 1, 2024)" and "Amazon Fees (After August 1, 2024)" as displayed in the screenshot:
For Amazon Fees before August 1, 2024, we recommend mapping to (20%) Reverse Charge Expenses (REVERSECHARGES).
For Amazon Fees after August 1, 2024, we recommend mapping to (20%) VAT on Expenses (INPUT2).
Note: Always consult with your tax advisor to ensure compliance with local VAT regulations.
