Amazon EU Sarl Now Charges VAT on Seller Fees

In brief: Amazon EU Sarl took over seller services, and VAT on fees came with it: on 1 August 2024, Amazon moved Selling on Amazon, FBA and its other services from Amazon Services Europe S.à r.l. (known as ASE) to Amazon EU S.à r.l. (AEU), including the Amazon Payments agreements. Businesses established in one of nine countries — Belgium, France, Germany, Italy, the Netherlands, Poland, Spain, Sweden or the UK — are now invoiced by AEU's branch in their own country, so local VAT is charged on Amazon fees — for UK sellers, 20% UK VAT. Sellers established elsewhere are still invoiced by AEU's Luxembourg head office with no change to VAT. Service prices didn't change.

Amazon EU Sarl and VAT on fees: before and after

	Up to 31 July 2024	From 1 August 2024
Supplier	Amazon Services Europe S.à r.l.	Amazon EU S.à r.l. (UK branch for UK-established sellers)
VAT on a UK seller's fees	Reverse charge	20% UK VAT on the invoice
Fee prices	—	Unchanged

A worked example

A UK VAT-registered seller pays £2,000 of fees in a month. Before August 2024 the invoice showed £2,000 and the seller accounted for the VAT through the reverse charge. From August the UK branch adds £400 VAT (20%), taking the charge to £2,400. Amazon expected most sellers to recover that VAT through their normal VAT return, which for a UK seller would bring the net cost back to £2,000.

What it means for your bookkeeping

• Update your supplier. Fee invoices come from a new entity; if you keep Amazon as a supplier contact in your accounts, record the new name.

• Change the VAT code by date. Fees up to 31 July 2024 keep the reverse charge; fees from 1 August carry 20% UK VAT — even when both sit in the same settlement.

• Not VAT-registered? You can't reclaim the new VAT, so your fee costs effectively rose by 20%.

• Full detail: see our guide to VAT on Amazon fees from August 2024.

• Reclaiming it. VAT-registered sellers recover the new VAT in the normal way — see reclaiming VAT on Amazon seller fees.

How TrueBooks helps

TrueBooks applies the August 2024 fee VAT change by date, even inside one settlement, and posts fees to Xero with the right UK VAT on each side of the switch. See the Amazon Xero integration.