From August 1st, 2024, there will be changes to the VAT treatment of fees on Amazon’s platform affecting sellers in the UK, Germany, France, Italy, Spain, the Netherlands, Poland, Belgium, and Sweden. Currently, Amazon Services Europe Sarl (ASE) provides services to sellers and bills them from Luxembourg using the reverse charge mechanism. From August 1st, 2024, the services will be provided by Amazon EU Sarl (AEU) and invoiced by AEU branches in each country, resulting in domestic VAT being charged on the service fees. This may impact cash flow as sellers will have to pay VAT upfront and wait to recover it later. Small businesses may also face changes based on tax collection or registration thresholds.
Source Aleksandra Bal
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