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  • Global Trade

You must get a VAT number if you are an Amazon seller

Selling goods on Amazon is one way to build up enough capital to start your own business. However, before you can do this, you need to know the rules of the market place because it plays by its own set of guidelines. If you are able to adapt quickly and understand what you can and cannot sell, then there may be potential for high profits if done well. However, before you can sell on Amazon, there are some things that you need to do.

The first of these is getting a VAT number. If you do not have this, then the profits that you make with be taxed at 20% - which can significantly ruin your business. Most companies in most countries are required by law to pay VAT on their turnover if they sell goods or services to customers within the country they are based in. However, if they purchase products from other EU member states for resale within the same member state with no modifications done to it prior resale- this includes selling via market place platforms such as eBay and Amazon- then they must charge VAT on any sales made in addition to receiving payment for goods that they resell. This means that VAT is to be charged at the rate in the country where the customer resides and not that in which the company is based.

Procedure for getting a VAT number

If you see any message like "You don't need a VAT Number to sell on Amazon" when you try to register, then this article isn't for you. However, if your account still shows "not registered- shop not available" after all these, read ahead... If you have been based in one country for more than 183 days of the current year or more than 122 days of last year preceding this, or if your revenue from goods sold on Amazon exceeds EUR 10 000 per annum, then registering for VAT is compulsory - so might as well get started now instead of waiting till the last minute.


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