Strict compliance review! Amazon VAT issues broke out on a large scale...

Strict compliance review! Amazon VAT issues broke out on a large scale...

Normal, once there is data abnormality, such as sales are falling, conversion rate is abnormal, flow is 0, etc., we need to deal with it in time. Regarding data analysis, we will mainly analyze store traffic data, sales data and advertising data. Through these data, we can observe whether today's sales have increased or decreased. If there is a problem, we can accurately know which link has the problem and make reasonable adjustments.

Sellers, please note! A new round of compliance review is coming!


Recently, Amazon has been collecting and verifying the Value Added Tax (VAT) registration information of EU member states, the United Kingdom, Norway and Switzerland, requiring that the VAT registration information (legal name and address) provided in the seller platform be consistent with the information stored by the tax bureau, otherwise the store’s sales rights may be restricted.



At the same time, Amazon changed its service provider from ASE to AEU, and the VAT number of sellers when using Amazon Import One-Stop Shop (IOSS) was also updated!

01
VAT address problems broke out!


Recently, many Amazon sellers have encountered VAT address issues on the European site.


Some sellers were informed by Amazon that there was a discrepancy between the VAT tax address in the tax settings and the information in the tax records ! The notification was sent by the Amazon Business Purchasing team, who officially pointed out that the company address on the tax settings page in the seller platform must be consistent with the information in the tax database of the corresponding country/region , and the platform requires sellers to correct it within the specified time.



One of the insiders learned from the tax agent that a large number of European sellers have received the above email.


One of the sellers had his German warehouse closed because the address of the tax documents was inconsistent with the information in the Amazon backend. The seller needs to correct the discrepancy according to the handling suggestions and submit the required documents for verification again.



Sellers who encounter such problems may feel confused. Should they change it or not? How should they change it? From the modification entrance provided by Amazon, there are two paths: go to the backend to update the relevant address information? Or change the tax address of the tax number?



But no matter you belong to "Case 1" or "Case 2", try not to choose the "2" path marked in the figure above: changing the address in "Business and Contact Information" is likely to trigger a KYC review, which will be very troublesome!


It is important to note that the VAT in the UK, France and Italy is greatly affected by this update. Amazon's new requirement for uploading VAT is no longer based on the company's registered address, but on the tax registration address!

02
VAT specific compliance requirements


Amazon requires that the VAT registration information provided by the seller's backend is exactly the same as the registered name and address stored in the official tax agency database, and is consistent with one of the legal address, VAT group representative, tax representative, tax authority, service provider, etc. Failure to do so will have the following impacts on the seller:


1. Account restricted or frozen 2. Face tax audit and fines
3. Increase operating costs 4. May cause legal issues


Amazon has updated the relevant page function. When adding VAT registration information on the seller platform, you can enter and check the address related to the VAT registration number that conforms to the actual situation.



If the address you provide is not the company's legal address, Amazon may require you to provide relevant materials to prove the relationship between the address and your company.

If the seller encounters this situation, they need to first solve the problem of inconsistent addresses, rebind VAT in the background after solving it, and then reopen it. If the company's registered address changes and the tax number address needs to be modified, you can contact the agent to make the change. When uploading the VAT registration information on the Amazon platform later, make sure that the relevant addresses entered are consistent.
03
Service change notification: IOSS and VAT numbers updated in a timely manner


Amazon has changed its service provider from Amazon Services Europe S.à rl (ASE) to Amazon EU S.à rl (AEU), and sellers' VAT numbers when using Amazon's Import One-Stop Shop (IOSS) have also been updated. Sellers need to ensure that their logistics partners use the correct IOSS number to avoid customers paying additional taxes.


IOSS VAT Number Update:
- The IOSS number of all EU sites has been uniformly updated to IM4420001405.
- Updated to IM4420004028 for the United States.
- IM4420004017 for Canada.
- IM4420004006 for Japan.



VAT number updates : VAT numbers for Norway, Jersey, Malaysia, Singapore, Australia and New Zealand have been updated.



This service change by Amazon is important for sellers who rely on Amazon's logistics services. Sellers should check and update their IOSS numbers immediately and ensure that their logistics partners understand and comply with the new requirements to avoid unnecessary tax burdens!

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