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This article applies to selling in: Canada

VAT information in your Amazon Seller Central account

Important: The following information is provided for convenience and general reference purposes only. It is not tax, legal, or other professional advice and must not be used as such. You should consult your professional advisers if you have any questions or need further detail.

Overview

When you open or operate a Selling on Amazon account, you must provide us with up-to-date information so that we can confirm who you are and where your business is located. Amazon uses these details to calculate tax on your Amazon fees and, if required under applicable law, on your Marketplace transactions (Marketplace Facilitator regulations, refer to FAQ 3). Amazon may also use these same details to calculate tax on your sales transactions if you signed up to the VAT Calculation Services programme.

To ensure that Amazon calculates tax correctly, it is very important that you keep your account details accurate and up to date. Failure to do so may result in incorrect VAT calculations and additional costs to your business. At a minimum, we require that you provide us with your:

  • Settings > Account Info > Business information > Business address
    • The address you provide must represent your primary place of business (head office or branch) where you receive services from Amazon. Your business address is normally where you have registered your business and where its management are located. For non-business customers, this represents your usual place of residence.
    • We may perform identity checks to confirm your business belongs and operates from this address. If we are unable to verify your business address, this could lead to your account (and/or your disbursements) being suspended until we can succesfully verify your details.
  • Settings > Account Info > Tax information > VAT Information
    • You should provide your VAT registration number issued in the same country as your your business address (and mark this as primary). Failure to provide this VAT registration number might result in incorrect VAT charges.
    • You may also be required to provide other VAT registration numbers belonging to your business in countries outside of your business address country. In certain locations, local laws/regulations mean that Amazon must collect your local VAT registration number(s) where you store your inventory or where you have exceeded certain sales thresholds. We may also require details of your other VAT registration numbers in order for you to participate in certain Amazon programs.
  • Settings > Account Info > Shipping and returns information > Shipping settings > General shipping settings > Default shipping address
    • The address you provide must represent the primary address from which you self-fulfill orders. This address may be used by Amazon to determine the originating jurisdiction for your sales. This address is also used to determine the 'deliver-from' address for sellers participating in VAT Calculation Services (refer also to FAQ 4).

Frequently asked questions

What happens if I do not keep my business address up-to-date?

Failure to provide correct business address could lead to incorrect VAT charging being applied on your Amazon fees and on your marketplace transactions where applicable. If we are unable to verify your business address, this could also lead to your account (and/or your disbursements) being suspended until we can succesfully verify your details.

Will changing my business address trigger EU Marketplaces Know Your Customer (“KYC“) review (Seller Qualification Audit)?

A change of business address may trigger KYC review if the updated address is a new address to Amazon. We are legally required to perform KYC checks for anti-money-laundering purposes and, if a KYC review is triggered, you may be required to provide additional information related to this new address.

What are Marketplace Facilitator regulations and how can these affect my business?

Countries are implementing Marketplace Facilitator regulations which mean, under certain conditions, Amazon is liable to collect and remit VAT from customers in respect of your marketplace transactions. One of the elements needed in this respect is confirmation of your business address. It is therefore important to keep your business address up-to-date.

What happens if I provided a default ship-from address which is not my actual ship-from address?

When Amazon calculates taxes for your marketplace transactions, the total price including VAT is displayed to the customer at check out (based on your VAT inclusive list price). One of the factors that impacts this tax calculation is the default ship-from address. If your actual ship-from address is in a different country, this may lead to VAT calculation errors. It is therefore important to keep your ship-from address up-to-date.

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