Amazon ASE to AEU: VAT Changes for Sellers Since 2024
On August 1, 2024, Amazon implemented significant changes that will impact sellers using this popular e-commerce platform. These changes primarily affect businesses based in nine European countries, including Poland. This article outlines the upcoming changes and their potential impact on your sales operations.
Transition from Amazon Services Europe to Amazon EU
Until now, sellers on Amazon in Europe have been working with Amazon Services Europe S.à r.l. (ASE), a company registered in Luxembourg. Since August 1, 2024, seller services have been managed by Amazon EU S.à r.l. (AEU), which has branches in nine European countries: Poland, the United Kingdom, Germany, France, Italy, Spain, the Netherlands, Belgium, and Sweden.
For more information, visit the Amazon Services Europe Business Solutions Agreement.
What does this mean for sellers?
This change involves updating all agreements, terms, and conditions that were previously established with ASE. Now, they will refer to AEU. For example, payment agreements that sellers have signed with ASE will need to be updated to reflect the new servicing entity, AEU.
New invoicing rules and VAT
Since August 1, 2024, all invoices issued by Amazon come from AEU instead of ASE. For sellers in countries such as Poland, Germany, or Spain, this means invoices will be issued by the local AEU branch in their respective country. Practically, this means:
- Local VAT regulations: Invoices will be subject to local VAT regulations, meaning the VAT amount will be deducted from Amazon fees according to local rates. For Polish sellers, this means a 23% VAT rate, which will be deducted from their payouts.
- VAT recovery: Sellers will be able to reclaim VAT as part of their VAT return process. It is advisable to consult with a tax advisor to understand how best to handle the new VAT regulations in your country.
If your business is not based in one of the nine listed countries, invoices will be issued by AEU’s central office in Luxembourg, and the VAT calculation method will remain unchanged.
What stays the same?
Although there will be changes in the invoicing entity and VAT handling, many aspects of working with Amazon will remain unchanged, including:
- Account access: Your seller account, product listings, customer reviews, and prices will remain the same.
- Settlement currency: The currency in which invoices are paid and in which you receive payouts will not change.
- Payout cycle: The frequency of payout cycles will remain the same, so you don’t need to worry about delays in receiving your money.
Who will be affected by the changes?
The changes affect all sellers currently working with Amazon Services Europe S.à r.l. If your business is based in one of the nine countries where AEU has branches, you need to prepare for changes in VAT handling and invoicing. If your business is not in these countries, the changes will have a limited impact on your operations.
How to prepare?
If you have not yet adapted to these changes, consider taking the following steps:
- Review agreements: Thoroughly read the updated agreements with Amazon EU S.à r.l. to understand the changes and how they might impact your business.
- Consult a Tax Advisor: Understanding local VAT regulations is crucial. Consulting with an expert will help you optimize the VAT recovery process and adapt to the new rules.
- Update your accounting systems: Ensure that your accounting systems are ready for the new invoicing and VAT procedures.
- Inform your staff: Employees responsible for finance and accounting should be aware of the changes so they can respond appropriately to the new procedures.
Summary – Changes on Amazon
The changes that came into effect on August 1, 2024, may still seem complex, but proper preparation will help minimize their impact on your business. The key is to understand how the new VAT regulations will affect your operations and to consult with experts to adapt to the new requirements. This way, you can continue selling on Amazon without significant disruptions.
Update for 2026: Since January 2026, Amazon’s Pan-European FBA programme requires sellers to provide VAT registration numbers for a minimum of five EU countries (previously four) to maintain eligibility. The required countries are Germany, France, Poland, Italy, and Spain. Sellers using Pan-EU FBA who have not yet registered in all five countries should act promptly to maintain programme access.
If you need assistance in understanding or implementing these changes, please contact us – our specialists are ready to help you navigate this process.
Iga Turniak
