End of Amazon VAT Services: Why amavat® is a perfect alternative

Amazon, a leader in the e-commerce world, has long attracted sellers with the promise of easy access to international markets and support for managing sales and tax obligations. However, the decision to end Amazon VAT Services as of October 31, 2024, raises significant concerns, especially in the context of the upcoming peak sales season in the fourth quarter of the year. In light of this change, sellers must now seek new accounting partners and adjust their tax strategies. Does this mean they will lose something valuable? And what are the available alternatives that can help them through this challenging period?

The end of Amazon VAT Services – What does it mean for sellers?

Amazon VAT Services aimed to simplify VAT management for sellers operating on the Amazon platform across various European Union countries. It offered comprehensive support in VAT registration, filing returns, and compliance with local tax regulations. Amazon’s tax partners were supposed to assist sellers with the complex tax procedures related to warehousing goods in different EU countries.

However, in practice, this service did not always meet expectations. Numerous complaints from sellers about communication issues and inadequate support during crucial moments led to serious problems, such as financial penalties and errors in filings. Moreover, despite initially attractive terms, Amazon VAT Services quickly proved to be costly and risky.

Timeline of changes – What you need to know

Here are the key stages that sellers should track:

• August 2024: Current tax partners will reach out to sellers to establish new cooperation terms and facilitate account registration on new platforms.
• September 2024: This will be the last month in which tax advisors will handle VAT returns under Amazon VAT Services.
• October 2024: The final VAT submission fees will be charged under this service.
• November 2024: Sellers will need to take full responsibility for their VAT submissions and work directly with new tax advisors.

Sellers should also download all VAT documents from the Seller Central panel by August 31, 2025, and decide to end their current advisor’s services before October 1, 2024.

Is the end of the service a loss or an opportunity for e-commerce businesses?

The decision to end Amazon VAT Services at such a critical time of the year, when sellers are preparing for the fourth quarter, may be seen as a significant challenge. Shifting responsibility for tax issues to sellers during a peak sales period could lead to delays and additional problems. Nevertheless, for some sellers, this could also be an opportunity to move to more professional and tailored services that better meet their needs.

Why consider amavat®?

In light of the end of Amazon VAT Services, amavat® is ready to provide the support you need. Our solutions are designed with online sellers across the European Union in mind, offering comprehensive services that effectively address VAT challenges.

1. Comprehensive EU coverage: We offer full support in every EU country, which is invaluable for sellers operating in international markets. Unlike Amazon VAT Services, which might have had limitations in handling specific countries, amavat® guarantees full service wherever needed.
2. Local expertise: Our services are tailored to local tax regulations, meaning you can rely on support from local experts. This helps avoid issues with filing errors and ensures compliance with specific local tax authorities’ requirements.
3. OSS (One Stop Shop) procedure: We facilitate the use of the OSS procedure, which significantly simplifies VAT reporting for cross-border sales within the EU. This allows you to efficiently manage your tax obligations across the entire European Union.
4. Dedicated account manager: Every amavat® client is assigned a dedicated account manager who handles individual tax needs and provides effective solutions to problems. This ensures you always have someone who understands your specific requirements and offers support tailored to your situation.
5. Advanced tools: We invest in advanced automation tools that streamline accounting and tax processes. This allows you to focus on growing your business, with confidence that your tax issues are fully compliant with regulations.

For more information about our VAT compliance services, visit our website: VAT services for e-commerce – amavat®.

Summary

The end of Amazon VAT Services may be a challenge for many sellers but also an opportunity to switch to more professional and personalized services. amavat® offers comprehensive tax support that can be a crucial asset for businesses operating in international e-commerce markets. With a wide range of services, local support, OSS procedure, and a dedicated account manager, amavat® can help sellers efficiently manage their tax obligations and avoid VAT-related issues.

We encourage you to take advantage of our offer and explore the full range of VAT compliance services we provide. Contact us to find out how we can support the growth of your business in international e-commerce markets.