Online marketplaces like Amazon are blocking accounts and demanding back payments from merchants with operations outside the EU due to VAT misassessments. This often stems from insufficient compliance with EU VAT regulations, particularly concerning the supply chain fiction introduced on July 1, 2021. This rule designates the marketplace as the VAT debtor for sales by non-EU sellers to EU consumers, with the seller making a VAT-exempt fictitious sale. The supply chain fiction differs from marketplace liability for VAT. A trader’s VAT residency depends on their principal place of business and effective management, and a fixed establishment with resources can establish residency.
Source: bakertilly.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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