Amazon Integration – VAT Compliance for Amazon Marketplace Companies

Structured Processing of Amazon Report Data for Country Specific VAT Obligations

Amazon marketplace companies use Amazon as a central sales and logistics platform. The resulting transaction and goods movement data form the basis for VAT and statistical reporting obligations in multiple jurisdictions.

Amazon provides various reports in Seller Central for this purpose. These report data are structured but not immediately ready for filing. They must be economically valued, allocated to the relevant jurisdiction, and processed in a rule based manner.

Relevant Amazon Reports and Their Function

For VAT processing, in particular the Amazon VAT Transactions Report and the Fulfilled by Amazon VAT Report FBA are relevant.

The VAT Transactions Report contains information on sales, returns, refunds, as well as cross border goods movements within the Amazon fulfillment network, for example FC transfers, outbounds, and inbounds.

The FBA report contains shipping related tax information and buyer identification data that are required for certain country specific reporting formats.

Valuation and Allocation Challenges in Cross Border Goods Movements

Cross border goods movements in the Amazon VAT Transactions Report do not contain a goods value. However, an economic valuation is required for VAT and Intrastat purposes.

Multiple warehouse locations within the EU or beyond give rise to different tax situations such as intra Community transfers, domestic supplies, or OSS relevant transactions.

The correct allocation of these situations to the respective contract countries requires structured and traceable processing.

Supplementary Product Master Data for Economic Valuation

Supplementary product master data are required for the economic valuation of goods movements.

The goods value is determined on the basis of purchase price multiplied by quantity. In addition, Intrastat relevant information such as commodity code or weight can be taken into account.

TaxHub provides a structured template through which product master data can be supplied and incorporated into the processing workflow.

Integration of Amazon Report Data Into the HubSystem

The integration of Amazon report data takes place either through manual upload of the reports or through automated transfer via the Amazon Selling Partner API.

The report data are imported into the HubSystem where they are validated, supplemented, economically valued, and processed in a rule based manner.

Existing system structures of the company remain unaffected. The processing complements them with a structured compliance layer.

Rule Based Processing and Compliance Outcome

Based on the processed transaction and goods movement data, VAT relevant situations are determined per jurisdiction and reporting obligations are derived.

Country specific VAT return files are generated and Intrastat relevant data are supported.

Processing is rule based, traceable, and auditable.

This converts the transaction and goods movement data exported from Amazon reports into a structured basis for the proper fulfillment of VAT obligations.

Switching to DutyPay From Other Compliance Service Providers

A transition to DutyPay is possible even where existing compliance structures and ongoing reporting obligations are in place.

During the transition, existing registrations, contract countries, reporting periods, and relevant data histories are systematically analyzed and adopted.

Interfaces to platforms such as Amazon remain unchanged. Report data can continue to be provided via Seller Central or via the Amazon Selling Partner API.

Existing processes in accounting, ERP, or reporting are not replaced but supplemented with transparent and rule based compliance processing.

A transition should take place at the beginning of a reporting period in order to clearly separate responsibilities and data statuses.

A structured handover of previous filings as well as a technical and functional baseline analysis form the basis for uninterrupted continuation of all regulatory obligations.