Selling through the Amazon marketplace today offers a fast, convenient and seemingly simple opportunity for growth. A Hungarian or regional business can reach the entire European Union market with just a few clicks, while with Amazon FBA — Fulfillment by Amazon — a significant part of warehousing, packaging and delivery can operate automatically. In the background, however, there is a less visible but all the more important area: European VAT treatment.
Do you sell on Amazon or another marketplace? You may already have tax obligations in several countries
Although selling through Amazon and marketplaces may at first seem like a very simple opportunity, the European tax environment has become extremely complex in parallel with this, and may carry significant risks for those who are not fully aware of the rules.
An improperly structured sales model may result in tax risks across several countries and significant penalties.
Based on the experience of the experts of RSM Hungary, a significant proportion of businesses selling on Amazon are not fully aware of their tax obligations. In many cases, they are uncertain about exactly in which countries they are required to pay VAT, and it is also unclear to them when it becomes necessary to apply for a foreign tax number. In addition, it often happens that, due to inventory movements taking place in the background, tax obligations arise in several countries — even without the business noticing.
Why is the taxation of Amazon sales different from that of a “standard” webshop?
In the case of a company’s own webshop, the business typically knows exactly where its warehouse is located, where the goods are dispatched from, to whom it sells, and to which country delivery takes place.
In the case of Amazon FBA, however, the process is more complex than this. The business transfers its inventory to Amazon’s logistics system, which, depending on the selected model, may store, move and fulfil the products from different European warehouses.
What actually determines the tax obligation?
At first, the answer may seem obvious: the place of sale. But is this really what matters in every case?
A special feature of Amazon sales is that the logistics processes operating in the background may easily override this approach. This is precisely why it is particularly important to examine whether the tax obligation is actually determined by the place of sale, or rather by the place where the inventory is stored.
In practice, one of the most important rules is that where the inventory is located, a tax obligation may also arise. In many cases, this comes as a surprise to sellers. Therefore, it is particularly important to examine in which country the goods are in stock, where they are dispatched from, and whether there is any movement of the company’s own inventory from one Member State to another.
If, for example, a business stores goods in an Amazon warehouse in the Netherlands, or participates in the Pan-EU programme — which optimises Amazon’s European warehouse network — it may easily become a taxable person in several countries. This, in turn, entails local VAT registration and regular filing obligations.
Misconceptions about Amazon sales that may cause serious Amazon VAT risks
1. The most common misconception: “If I have OSS registration, everything is fine”
The OSS — One Stop Shop — is indeed an important simplification in EU e-commerce. It allows the VAT on certain cross-border B2C sales to be declared and paid through a single Member State portal. But the OSS is not a cure-all.
According to the information provided by the European Commission, the OSS return is supplementary in nature and does not replace the VAT returns that the business must submit based on its domestic obligations.
This is particularly important in the case of Amazon FBA, because the OSS typically does not cover local VAT obligations arising from stockholding and the movement of own goods.
Therefore, the OSS may help simplify B2C sales, but it does not necessarily save the business from foreign VAT registrations.
2.Misconception no. 2: “Amazon takes care of VAT, I have nothing to do with it”
Amazon does indeed play an important role in VAT treatment in certain cases, especially as a marketplace operator or in connection with certain import transactions. However, this does not mean that all VAT obligations of the seller automatically cease to exist.
The seller must still examine where it stores inventory, where a registration obligation arises, what sales model it operates under, and what returns must be submitted.
3.Misconception no. 3: “The inventory is with Amazon, so it is not my problem”
In the case of FBA, the inventory may still remain the seller’s inventory, even if it is physically located in Amazon’s warehouse. If this inventory is moved from one country to another, it may qualify as a transfer of own goods for VAT purposes.
This alone may result in a tax obligation.
4.Misconception no. 4: “I only sell in Germany, so I only need to deal with VAT there”
The country of sale and the country where the inventory is stored are not always the same. If the business uses the Pan-European FBA model, inventory may appear in several countries. Amazon’s own information also draws attention to the fact that, when using Pan-European FBA, VAT registration may be required before sales begin, and filing obligations may arise in several countries.
Therefore, a seemingly single-country sales model may easily become a multi-country compliance task.
What VAT risk may arise under each sales model?
The sales model is key
The exact obligations that arise depend to a large extent on the sales model applied.
Single-country FBA model
In the case of a simple warehousing model limited to one country, a local VAT number and the fulfilment of local filing obligations are generally sufficient, while the OSS system may be applied to B2C sales.
Pan-European FBA model
By contrast, the Pan-EU model means inventory stored in several countries, which entails multiple VAT registrations, multiple returns and a significant administrative burden. Although this model offers serious growth potential, it also carries the greatest risk.
Typical risks:
- multiple-country VAT registration requirements,
- incorrect treatment of movements of own goods,
- confusion between OSS and local returns,
- failure to submit Intrastat reports,
- incorrect or incomplete invoicing settings,
- penalties due to late registration.
The Pan-EU model is therefore not a bad choice, but it is only safe if the tax background is planned in advance and continuously monitored.
B2B sales through Amazon
In the case of B2B sales, the reverse charge mechanism may be applicable; however, this does not exempt the business from the registration obligation in the country where the inventory is stored.
What can happen if Amazon VAT treatment is not in order?
Most problems do not arise from the payment of tax itself, but from the fact that the business does not comply with the rules. If there is no registration in the appropriate country, both sales and invoicing may become impossible. It may happen that returns are submitted in the wrong country, or that certain mandatory reports — such as Intrastat or recapitulative statements — are simply omitted.
These errors often only come to light during a later tax audit, when significant penalties may already be imposed retroactively for several years. In serious cases, Amazon may even decide to suspend the seller account.
How does RSM Hungary help businesses selling on Amazon?
Amazon FBA and Pan-European FBA operations are not merely logistics decisions. They also raise VAT, reporting and compliance issues across multiple countries.
The experts of RSM Hungary help businesses selling through Amazon, marketplace platforms or their own webshop ensure that growth is supported by a stable, verifiable and long-term sustainable tax structure.
RSM support for Amazon sellers
RSM Hungary provides support in, among others, the following areas:
- Amazon FBA and Pan-European FBA VAT risk assessment,
- tax analysis of sales and inventory movement models,
- coordination of foreign VAT registrations,
- preparation of local VAT returns,
- support with OSS returns,
- handling Intrastat reports and recapitulative statements,
- tax review of B2B and B2C sales structures,
- reconciliation of Amazon reports and VAT return data,
- deadline monitoring,
- liaising with foreign tax authorities,
- strategic advisory on choosing between a single-country model and a Pan-EU model.
The objective is not merely to avoid penalties. Rather, it is to enable the business to grow in the European market in a transparent, scalable and secure manner.
Take action in time
If you would like to know whether your business is affected by tax obligations in several countries, it is worth requesting a quick VAT status review or pre-registration advisory service. During a short consultation, our experts will map out where your tax obligations arise, in which countries registration is required, and what risks are currently present in your operations.
The right structure not only provides security, but also guarantees calm and predictable operations.
I am interested in a consultation opportunity
Without a stable tax background, Amazon growth can easily turn into a risk
Amazon represents a huge business opportunity for entering the European market and achieving international growth. However, the more countries, warehouses, sales channels and customers the operation involves, the more important accurate VAT treatment becomes.
A well-designed tax structure:
- reduces the risk of penalties,
- makes operations more predictable,
- supports international expansion,
- improves the level of tax authority compliance, and helps the business truly focus on sales and growth.
