Amazon taxes in Europe: VAT, OSS and EPR obligations

Why taxes are key to selling on Amazon

Selling on Amazon in Europe is not only good photos and an attractive product description. The foundation is taxes and regulatory compliance: without it no offer stands a chance of stable sales.

As a marketplace, Amazon bears joint liability for its sellers, which is why it requires full VAT and EPR compliance. A lack of registration or tax arrears usually ends in blocked listings or even the whole account.

In the European Union, cross-border trade means additional obligations:

• when shipping goods from one country to Germany or France, you need to know when VAT OSS is enough and when a local VAT registration is required,
• in many countries (e.g. Germany, France) the seller must have active EPR numbers, or they cannot list offers in selected categories.

For companies selling on Amazon this means reconciling two levels of requirements:

• local national rules (e.g. domestic VAT),
• EU regulations (OSS, EPR, VAT in the storage countries).

👉 Only combining both perspectives lets you operate lawfully, avoid blocks and build European sales without risk.

VAT on Amazon: the basics

Selling on Amazon in Europe, you cannot avoid the topic of VAT. It is correct registration and settlement that determine whether your account runs without disruption and whether you avoid blocks from Amazon or local tax offices.

When you need a VAT registration

• In your home country: if you run a business, you are obliged to settle VAT under national rules. A domestic VAT exemption may exist (in Poland, for example, up to around €45,000 of annual turnover), but in practice Amazon often requires a VAT number at registration anyway.
• In other EU countries: the need to register appears when you store goods there (e.g. FBA in Germany) or exceed the sales threshold to a given country.

VAT and logistics models: FBM vs FBA

• FBM (Fulfilled by Merchant): if you ship from one country without storing goods in others, you can settle sales at home and report them in the VAT OSS system.
• FBA (Fulfillment by Amazon): here the goods go to Amazon’s warehouses, e.g. in Germany or France. The mere storage of products in a given country creates an obligation to register locally for VAT and file returns.

VAT and sales to other EU countries

Since July 2021 the VAT OSS (One Stop Shop) system has been in place, making cross-border trade easier. It lets you settle sales to consumers in other EU countries in one place: your home country. But note: OSS only works when you do not store goods outside your home country. If you use FBA in another country, OSS is not enough and you must register for VAT locally.

The invoicing obligation and the EU VAT number

Amazon requires sellers to be able to generate correct invoices compliant with tax law. In practice this means the need for an active EU VAT number enabling intra-Community transactions. A lack of proper documents or delays in issuing invoices can result in blocked offers, especially on demanding markets like Germany.

👉 The key rule: selling in another country = check whether your products are physically located in a warehouse abroad. If so, local VAT becomes mandatory.

VAT OSS: a simplified settlement procedure

The VAT OSS (One Stop Shop) system was introduced in July 2021 to simplify life for sellers operating cross-border in the European Union. Thanks to it you do not have to register for VAT separately in every country where you have customers: one registration at home and one quarterly return is enough.

What VAT OSS is

It is a special tax procedure that lets you settle B2C sales of goods (to consumers) across the whole EU through the tax office of the country where you run your business, in this case the domestic tax office.

When you can use OSS

OSS works when:

• you ship goods from your home country to consumers in other EU countries,
• you do not store goods outside your home country (i.e. you operate in FBM or in FBA exclusively from a domestic warehouse).

If you store products in another country (e.g. FBA in Germany), OSS is no longer enough: you must register for VAT in that country.

OSS advantages

• One settlement instead of many: you do not have to keep accounts in each country separately.
• Time and cost savings: you avoid additional registrations and reports.
• Transparency: settlements are done centrally, through the domestic tax office.

OSS limitations

OSS also has its limitations:

• it does not work when you use Pan-EU FBA, because in that model Amazon replicates stock across many countries, which requires local VAT registrations,
• it requires keeping track of the correct VAT rates for each country you sell to,
• it concerns only sales to consumers (B2C), not B2B transactions.

👉 In practice OSS is a great solution to start with, especially for sellers who want to test sales on several markets. But the moment you decide on Pan-EU, you must be ready for local VAT registrations.

VAT registration in EU countries (the FBA and Pan-EU case)

The moment you start using FBA in countries other than your own or enable the Pan-EU model, an obligation to register for VAT locally appears. This follows from the fact that storing goods in a given country means a “fixed place of business” and creates tax obligations.

When you must register for VAT locally

• If you ship goods from an Amazon warehouse in a given country (e.g. FBA in Germany or France).
• If Amazon has replicated your stock to several countries under Pan-EU.
• If you make local sales above the thresholds OSS does not cover.

In practice this means that even if your company operates in one country, by keeping stock in a DE, FR or IT warehouse you must have a local VAT number there and file returns.

Examples of countries where sellers most often register for VAT

• Germany (DE): the largest Amazon market in Europe, practically mandatory for serious sales.
• France (FR): a large market, but additionally requiring EPR numbers (packaging, electronics).
• Italy (IT) and Spain (ES): often chosen by Amazon as warehouse locations under Pan-EU.
• Czech Republic (CZ) and Poland (PL): used within Amazon’s logistics network (e.g. warehouses in Poznań, Wrocław or Prague).

Registration costs and duration

• VAT registration in individual countries usually takes 4 to 12 weeks, depending on the office.
• Costs depend on whether you do it yourself or through a specialised firm. As standard, expect from €300 to €800 per registration plus additional monthly reporting costs.
• Amazon verifies VAT numbers and can block offers if they are not entered in Seller Central.

Reporting obligations

• After registration you must file regular VAT returns in the given country (most often monthly or quarterly).
• Some countries require additional reports, e.g. Intrastat for intra-EU trade.
• Failing to file a return on time carries penalties and, worse, can result in an Amazon account block.

👉 That is why, when planning Pan-EU, you must account not only for logistics costs, but also for full VAT handling in several countries at once. In practice many sellers use accounting firms specialised in eCommerce that run these settlements on their behalf.

EPR (Extended Producer Responsibility): new rules for sellers

Since 2022, alongside VAT obligations, another requirement has appeared on Amazon: EPR (Extended Producer Responsibility). It is an EU system aimed at shifting part of the costs related to waste onto the entities placing products on the market. In practice this means the seller must ensure correct registration and reporting for packaging waste, electronics, batteries or furniture, depending on the product categories.

What EPR is

EPR covers obligations related to:

• packaging: every seller shipping parcels must account for the amount of packaging placed on the market,
• electronics and electrical equipment (WEEE),
• batteries and accumulators,
• in some countries also furniture or other categories.

EPR registration means obtaining a local producer number (EPR number) and regularly reporting the volumes placed on the market.

In which countries Amazon requires EPR numbers

At present Amazon particularly enforces EPR in:

• Germany (DE): mandatory registration in the LUCID system (packaging), as well as in the relevant organisations for electronics and batteries.
• France (FR): the EPR obligation covers packaging, electronics, batteries, furniture, textiles and other categories.

Amazon has introduced dedicated sections in Seller Central for adding EPR numbers and blocks listings if the seller does not provide the required data.

How to obtain an EPR number and who needs it

• An EPR number is obtained by registering in the relevant system in a given country (e.g. LUCID in Germany, the ADEME system in France).
• The seller must sign a contract with an approved waste management organisation and regularly report the volumes (e.g. the weight of packaging placed on the market).
• The obligation applies to every seller shipping products to consumers in a given country: not only manufacturers, but also resellers and distributors.

Consequences of not registering

Amazon takes EPR very seriously, because it is jointly liable for its sellers. A lack of an EPR number means:

• your offers will be blocked in the given country,
• in some cases Amazon will withhold your payments until the numbers are added,
• local authorities may impose financial penalties.

👉 That is why EPR is an obligation that cannot be put off “for later”. In particular, companies targeting Germany and France must plan this process before launching on Amazon.

How Amazon controls VAT and EPR

Amazon does not leave sellers free rein on taxes. As a marketplace it bears joint liability for VAT settlements and sellers meeting EPR obligations. This means that if a seller is not compliant, Amazon may bear the consequences too, which is why the platform actively enforces compliance.

VAT verification in Seller Central

• Already during account registration Amazon asks for a VAT number and then verifies it in the VIES system (the EU VAT register).
• Sellers using FBA must add to the account the local VAT numbers from the countries where they store goods.
• No valid VAT number = no ability to sell in a given country.

EPR verification in Seller Central

• In the Compliance section sellers must add EPR numbers (e.g. LUCID in Germany, ADEME in France).
• Amazon periodically reminds you to add missing numbers and gives a deadline to complete the data.
• For some categories (e.g. electronics, packaging) adding an EPR number is a condition for publishing the offer.

Automatic offer blocks

Amazon has automated control mechanisms:

• no VAT or EPR number → offers in the given country are blocked,
• data inconsistency (e.g. a different company name in the VAT register than in Seller Central) → a block or the need for re-verification,
• no regular returns → Amazon may withhold payouts until the matter is clarified.

👉 In practice this means that without orderly taxes, selling on Amazon simply does not work. That is why so many sellers choose to work with accounting firms specialised in eCommerce that take care of all the formalities.

The most common seller mistakes and how to avoid them

Many sellers entering Amazon focus on the offer, ads or photos, and put off the topic of taxes “for later”. It is a mistake that often ends in an account block at the least convenient moment, e.g. at the peak of pre-holiday sales. Here are the most common problems we see:

1. No VAT registration in Germany with FBA

Germany is the largest Amazon market in Europe and the most commonly chosen FBA warehouse location. Many sellers do not realise that merely storing goods in DE creates a VAT registration obligation. Ignoring this rule ends in a quick offer block and lost sales.

How to avoid it? Check where Amazon ships your stock. If it is Germany, start the VAT registration process right away and prepare to file monthly returns.

2. Ignoring sales thresholds and OSS

Some sellers assume that since they settle at home, they can sell across the EU without limits. Meanwhile exceeding the €10,000 annual threshold of sales to consumers in the EU creates an obligation to use OSS. A lack of registration results in tax arrears and the risk of sanctions.

How to avoid it? Monitor turnover on foreign markets and, if needed, register for OSS at your domestic tax office.

3. Not filing monthly/quarterly reports

Registering for VAT in another country is only the beginning. You must also file VAT returns regularly, often monthly or quarterly. Many sellers forget this, and the financial penalties can be very severe.

How to avoid it? Set a reporting schedule and use an accounting firm that keeps an eye on the deadlines.

4. Delaying EPR registration

Many sellers downplay the EPR obligation until Amazon starts blocking offers. The problem is that this usually happens in Q4, the peak sales period, when every day of a block means real losses.

How to avoid it? Register for EPR in Germany and France before you start selling, especially if you operate in the electronics, packaging, batteries or furniture categories.

👉 Taxes and compliance are not an “option” on Amazon. They are an obligation you must have in order from day one. This lets you avoid unnecessary sales interruptions and focus on what matters most: scaling the business.

FAQ: the most common VAT and EPR questions

Taxes on Amazon often raise the most doubts. Sellers ask whether you can sell without VAT, how OSS works, how much EPR costs or how long registration in Germany takes. We have gathered the most common questions and prepared short, concrete answers to help you plan sales better and avoid surprises.

Can I sell without VAT? In theory a domestic VAT exemption exists in some countries (in Poland, for example, up to around €45,000 of annual turnover), but in practice selling on Amazon without a VAT number is heavily restricted. Amazon very often requires an active VAT number already at account registration, and a lack of it can mean blocked offers. Additionally, if you plan to sell in the EU, VAT becomes mandatory once you exceed the €10,000 annual threshold (B2C sales abroad).

Does OSS exempt me from VAT registration in DE/FR? No. OSS only works when you ship goods from your home country (or another single storage country) and do not keep stock abroad. If you use FBA in Germany, France or another country, you must register for VAT locally, even if you use OSS.

How much does EPR cost in Germany/France? The EPR cost depends on the product categories and sales volume.

• In Germany, registration in the LUCID system is free, but you must sign a contract with a packaging recovery organisation: the cost starts from a few hundred euros a year. For electronics or batteries additional fees may apply.
• In France the EPR fees are more complex: they depend on the category (packaging, electronics, furniture, textiles, etc.) and the volume. For small sellers these can be a few hundred euros a year, for large ones several thousand.

How long does VAT registration in Germany take? VAT registration in Germany usually takes 6 to 12 weeks, depending on the offices’ workload and the completeness of the documents. In practice it pays to start the process early, before shipping stock to FBA warehouses. Remember that Amazon may suspend sales in Germany until you add a valid VAT number to the account.

👉 A well-prepared tax strategy lets you avoid surprises and blocks. If you are not sure which obligation applies to your company, it pays to use the help of VAT and EPR specialists.

Summary and next steps

Taxes are the foundation of selling on Amazon. You can have a great product, an attractive price and a polished listing, but if you do not take care of VAT and EPR, sooner or later your account will be blocked and sales will stall. Amazon operates in full compliance with EU regulations and demands the same of its sellers, which is why scaling a business in Europe is impossible without an orderly tax strategy.

The good news is that it can be sorted out. You start with VAT at home + OSS, and as you grow in the FBA/EFN model, you add registrations in the storage countries. With Pan-EU you must prepare for bigger obligations (local VAT + EPR), but in return you gain the greatest sales potential and the highest conversion.

👉 If you do not want to spend time on the intricacies of the regulations, we can help.

We will help you through VAT and EPR without stress: from registration to reporting. Contact us and we will prepare an individual action plan and make sure taxes are not a barrier, but a solid foundation for growing your Amazon sales.