FBA (Fulfillment by Amazon) is a logistics service provided by Amazon. Through this service, sellers can store their inventory in Amazon’s logistics centers, and Amazon will be responsible for order processing, packaging and delivery. For sellers who use FBA services in Germany, this article will introduce the VAT requirements of German FBA to help sellers understand the relevant regulations that need to be followed when operating in Germany.
1. Determine VAT registration eligibility. Sellers who use FBA services in Germany need to confirm whether they are eligible to register for VAT in Germany. Generally, VAT registration is required when the seller’s sales exceed a certain threshold (currently €22,000). After registration, sellers will receive a unique VAT number and are eligible to sell in Germany.
2. Comply with German VAT regulations. When selling goods in Germany, sellers need to comply with German VAT regulations. This includes correctly calculating VAT tax amounts, using the correct tax rate, and providing accurate VAT invoices to buyers when sales occur. Understanding German VAT regulations and complying with them are key points to ensure compliance with FBA operations in Germany.
3. Provide VAT proof to Amazon. When using the FBA service, sellers need to provide Amazon with the corresponding VAT proof. This is usually done by providing a VAT registration certificate or other relevant documents. Amazon will determine whether the seller meets the VAT requirements based on these certificates and display the corresponding VAT information on its platform.
4. Track sales and register VAT. The VAT registration threshold in Germany is determined based on the seller’s sales. Therefore, sellers need to track their sales regularly and register VAT in a timely manner when sales exceed the threshold. Delays or failure to register VAT may result in violations and related fines.
Summary: Sellers using the German FBA service need to comply with Germany’s VAT requirements. Determining VAT registration qualifications, complying with German VAT regulations, providing VAT proof to Amazon, and tracking sales and registering VAT in a timely manner are all key points to pay attention to during German FBA operations.