Amazon warehouses in Europe: What VAT rates apply in the countries where warehouses are located?

Amazon is a leading player in the European e-commerce market and one of the most important trading platforms globally. It has a widely expanded network of warehouses in Europe, enabling fast delivery of products to customers. However, the location of these distribution centers plays a significant role in determining VAT taxation.

The location of Amazon warehouses in Europe and VAT calculation

Amazon operates numerous Fulfillment Centers across Europe. Their distribution is strategically tailored to serve customers in different countries, facilitating quick and efficient delivery. The location of Amazon warehouses significantly impacts where and at what rate VAT should be calculated.

Amazon warehouses in Europe and the applicable VAT rates:

In summary, Amazon has strategically positioned warehouses across Europe, including in Poland, the United Kingdom, Germany, Spain, France, Italy, Czech Republic, Slovakia, Ireland and Belgium. These distribution centers play a crucial role in ensuring efficient customer service across the continent.

Impact of warehouse location on tax obligations

If a seller utilizes Amazon’s storage services, the sale of goods stored in a particular warehouse to an end customer in the same country is treated as a domestic transaction. This means that VAT should be charged according to the rates applicable in the country where the warehouse is located. For example, if an Amazon warehouse is in Germany and a product is sold to a customer in Germany, the German VAT rate applies.

Intracommunity transactions and VAT

For sales of goods stored in a warehouse in one EU country to a customer in another EU country, it is necessary to apply the regulations concerning intracommunity transactions. This means that the seller must register as a VAT payer in the recipient country if they exceed certain sales thresholds.

FBA Program and seller tax responsibility

The “Fulfillment by Amazon” (FBA) program allows sellers to store and deliver goods through Amazon’s logistical infrastructure. While this program offers many logistical benefits, the responsibility for calculating and remitting VAT remains with the seller. Sellers must be aware of the applicable VAT rates and regulations in the countries where their products are stored.

Benefits of the FBA Program

The FBA program offers sellers many benefits, such as fast delivery, handling returns, and inventory management. However, to avoid tax-related issues, sellers must ensure they meet all requirements for calculating and remitting VAT in the countries where their products are stored.

Challenges related to warehouse location

Amazon regularly expands its warehouse network, meaning the list of locations may change. The changing geography of Amazon warehouses can impact sellers’ tax obligations. Therefore, it is recommended to regularly check for updated information and consult with tax advisors to ensure compliance with VAT regulations.

Tax consultations and support – amavat®

To deepen knowledge of VAT calculation rules and logistical solutions offered by the FBA program, it is worth contacting professional tax advisors. Specialists from amavat® have experience working with online retailers and can help understand and meet tax requirements related to selling on Amazon in Europe.

Feel free to contact amavat® to ensure that VAT does not negatively impact your development plans. Our qualified specialists are ready to provide comprehensive information and answer any questions you may have.

Summary – EU VAT regulations for Amazon warehousing

EU VAT regulations for Amazon warehousing impose specific requirements on sellers. Individuals conducting sales from their home country to other EU countries may already be aware of VAT registration thresholds for distance selling. However, if they decide to store goods in a foreign Amazon warehouse before making any sales, they must consider the following:

• Immediate registration as a VAT payer in the country where the warehouse is located.
• Inability to rely on VAT registration thresholds. This is because EU tax authorities will require reporting the movement of goods from the home country to the foreign Amazon distribution center.
• The necessity to start charging local VAT on sales to consumers in the country where the distribution center is located.
• In case of initiating sales of goods from a foreign warehouse to customers in other EU countries, standard rules for distance selling will apply to sellers using FBA.