Complete guide to advertising taxes, fees, and VAT on goods sold

Global advertising is a great way to help boost visibility of your brand and increase your sales. Just remember, there might be some taxes and fees to consider when selling and advertising on Amazon in multiple countries.

This guide includes the resources you need to answer your questions about taxes and regulatory fees, and Value Added Tax (VAT) rules.

  • Understanding taxes and regulatory fees on your advertising invoice
  • What is VAT?
  • VAT number registration
  • VAT rates
  • VAT legislations
  • Resources for additional VAT support

1. Taxes on advertising

Understanding taxes and regulatory fees on your advertising invoice

You might see charges on your advertising invoice in addition to your ad campaign charges. Below are different types of fees and taxes that could be applied to your invoices:

Regulatory advertising fees:

These fees may be applied to your invoice when an ad is served in certain countries, and/or for ads purchased by advertisers in certain countries, following the introduction of local Digital Services Taxes and/or other regulations. These fees are added to your invoice subtotal. Learn more about Regulatory Advertising Fees.

Indirect tax on sponsored advertising fees:

Certain countries with VAT, Goods and Services Tax (GST), and equivalent regimes have introduced rules for taxing Electronically Supplied Services (ESS) at the place where they are received. Where required by law, Amazon will charge and collect VAT/GST on the provision of digital advertising services under these rules. In general, ESS VAT/ GST is chargeable on sponsored advertising fees when the following criteria are met:

  • Advertiser has not provided Amazon with a valid VAT/GST registration number; and
  • Advertiser is established in a country that has introduced ESS or remote services rules.

Note: Amazon may be required to collect the standard rate of VAT/GST applicable to your country of residence or business establishment when a VAT/GST ID isn’t provided. If you have a tax ID, register it in your account to ensure you’re invoiced correctly. In certain countries, Amazon may be required to collect VAT/GST even if a VAT/GST ID is provided. You can learn more by visiting this guide on VAT on ESS.

Reach out to our support teams for additional help with your invoices.

2. VAT on goods sold

What is VAT?

VAT is a tax on goods and services sold in Europe. The tax is ultimately borne by the final customer and is not a charge on businesses, though there are some exceptions. Sellers pay VAT to the tax authorities, and the end customer pays the VAT as part of their purchase price. This means most businesses can recover the VAT they have paid. Read more at the VAT knowledge centre for sellers.

VAT number registration

If you’re unsure if you need to register for a VAT number, review the European VAT Education guide. Please consult your tax adviser for additional details and guidance. If you’re a seller and already VAT registered, upload your VAT number on Seller Central by signing in to your account and following these instructions to register your tax ID.

VAT rates

The VAT rates applied vary between European Union (EU) Member States and certain types of products. View the relevant EU VAT rates per product category to view which VAT rate you may be subject to.

VAT legislations

Brexit: On 1 January 2021, the UK left the EU’s Single Market and Customs Union. There is now a customs border between the UK and EU, which has an impact on businesses working across this border. The UK and EU reached a Trade and Cooperation Agreement (TCA) that set the new terms of trade between the UK and EU. For more information about customs formalities, visit the UK government website, and refer to this Brexit handbook.

3. More VAT help

Try these resources for additional VAT support:

  • Use VAT Services on Amazon to manage your European VAT registration and filing obligations (VAT returns) via third-party tax services providers more easily and efficiently, in up to seven countries (UK, Germany, France, Italy, Spain, Poland and the Czech Republic).
  • Try the VAT calculation service. For no additional cost you’ll receive prices displayed excluding VAT, a downloadable VAT Invoice badge displayed next to your brand’s name on the product detail page and offer listings pages, and automatic invoices sent to customers.
  • Visit the VAT knowledge centre for more information on VAT registration, rates and legislations.
  • Watch this video to learn about the VAT registration process.