Following Avalara 's recent announcement to discontinue its Amazon VAT services, Amazon has now announced that its entire VAT Services on Amazon program will be coming to an end on October 31, 2024. This decision affects all Amazon sellers across Europe who rely on this service to manage their VAT obligations.

The VAT Services on Amazon program was introduced as a convenient and cost-effective solution for sellers to handle VAT registration and filing requirements across the EU. It provided benefits such as a free EORI number, IOSS registration in at least one country, and additional countries if the stock was held in EU FBA.

Amazon states that it is committed to helping sellers manage their VAT obligations and is working to launch an improved program by 2025. However, in the meantime, sellers will need to find an alternative service provider by October 1, 2024, to ensure they remain VAT compliant.

Timeline:

• October 31, 2024: Official end date of VAT Services on Amazon program
• August 2024: Current tax providers will contact sellers to sign new terms and conditions and reactivate user accounts on their platforms
• September 2024: Last VAT filing period under the Amazon program (due in October 2024)
• October 1, 2024: Deadline for sellers to opt-out of their current provider and choose a new one
• October 2, 2024: Final VAT Services on Amazon filing fees charged
• November 2024: First monthly VAT filing due with new provider (outside Amazon's program)
• January 2025: First quarterly VAT filing due with new provider (outside Amazon's program)
• August 31, 2025: Last day to access and download VAT documents from Seller Central

What Happens to Sellers Currently Using VAT Services?

Sellers currently using VAT Services on Amazon will be contacted by their tax provider in August 2024. The tax provider will ask them to sign their terms and conditions and re-activate their user account to onboard them to their platform. The tax provider will continue to manage VAT filings until the end of September 2024. After that, sellers will be automatically unsubscribed from VAT Services on Amazon and their tax provider will manage all future VAT filings and charge them directly.

Don't Want to Continue with the Current Tax Provider?

Sellers who do not want to continue with their current tax provider after October 31, 2024, can opt out by clicking the link in their Seller Central case log. They must then contact a tax provider of their choice by October 1, 2024, to ensure they continue to meet their VAT obligations.

What About VAT Documents?

Sellers can download any VAT documents, such as VAT registration certificates, proofs of filing, and registration documents, from Seller Central until August 31, 2025. New VAT returns filed after October 31, 2024, will be automatically available on the tax provider's platform.

What Should Seller Do Next?

Sellers should confirm with their current tax provider that the transfer of their VAT services has been completed successfully. They should also check the status of their VAT filings to ensure they are compliant. If you are not satisfied with your current tax provider, you should start looking for a new service provider (like VAT Ai) as soon as possible.

Choose VAT Ai for Your VAT Transition!

At VAT Ai, we're fully prepared to ensure a smooth transition for your VAT services.

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✅Direct API connections with tax authorities for accurate and timely submissions

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✅Broad Service Range covers EPR registration & reporting, EU/UK Responsible Person, trademark registration, and more

Remember, with the October 1, 2024 deadline approaching and thousands of sellers looking for new providers, acting now ensures you'll have a reliable partner in place well before the transition.

Schedule a Free Consultation & Switch to VAT Ai Today