Polish Amazon sellers There are new features coming from today, August 1, 2024. The key change for sellers is the new way of settling tax VAT on invoices issued by Amazon. What exactly has changed?
Changes at Amazon from August 1, 2024. New billing entity
From August 1, 2024 Amazon introduced significant changes in the method of settlement sellers on its platform. As the company reported:
From August 1, 2024 sale on Amazon, Fulfillment by Amazon and all other services of Amazon Services Europe S.à r.l. (“ASE”) will be provided by Amazon EU S.à rl (“AEU”). All agreements, policies and terms (including Amazon Payments agreements) are transferred from ASE to AEU. In addition, as of August 1, 2024, all invoices will be issued by AEU.
What does this mean? The previous partnership with Amazon Services Europe S.à rl (ASE), based in Luxembourg, has been replaced by Amazon EU S.à rl (AEU), based in Germany. This change applies to sellers from nine countries, including:
- Polish,
- German,
- France,
- Italian,
- Spain,
- Great Britain,
- Netherlands,
- Belgium,
- Sweden.
From that date, all agreements, policies and terms of cooperation, including payment, were transferred from ASE to AEU. Furthermore, invoices will now be issued by AEU, which introduces changes in the way VAT is calculated.
Amazon changes for sellers. New taxation and VAT deduction
The key change for sellers there is a new way of settling accounts tax VAT on invoices issued by Amazon. As of August 1, Amazon will automatically deduct VAT from payments made to sellers at the rate applicable in their country of residence. For example:
- Polish sellers – payouts will be reduced by 23% VAT,
- German sellers – about 19%,
- French sellers – about 20%.
Importantly, the payout cycle and settlement currency will not change. However, the entity listed on invoices will change, as well as the company’s address and VAT number.
Amazon – changes from August 1. What are the consequences for sellers?
The change introduces new challenges for Amazon sellers,especially in the context of cash flow management. Sellers must include VAT deductions in their cash flow, which may require:
- financial planning taking into account the new VAT conditions,
- consultations with tax experts,
- regular monitoring of cash flows.
Although VAT will be deducted, sellers will have to file the appropriate VAT declarations and wait for the tax refund from the tax office, which in Poland can take up to 60 days.
