Taxes on Amazon in Europe – VAT, OSS, and EPR obligations

Why Taxes Are Key to Selling on Amazon

Selling on Amazon in Europe isn't just about good photos and attractive product descriptions. The foundation is taxes and regulatory compliance – without this, no offer stands a chance of stable sales.

Amazon, as a marketplace, bears joint and several liability for its sellers, which is why it requires full VAT and EPR compliance. Lack of registration or tax arrears usually results in listing blocks or even a complete account suspension.

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

• when shipping goods from Poland to Germany or France, you need to know when VAT OSS, and when local VAT registration,
• in many countries (e.g., Germany, France) the seller must have active EPR, otherwise they won't be able to list offers in selected categories.

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

1. local national regulations (e.g., VAT in Poland),
2. EU regulations (OSS, EPR, VAT in warehousing countries).

👉 Only by combining both perspectives can you operate legally, avoid blocks, and build sales in Europe without risk.

VAT on Amazon – basics

When selling on Amazon in Europe, the topic of VAT is unavoidable. Correct registration and settlements are crucial for your account to operate smoothly and to avoid blocks from Amazon or local tax authorities.

When you need VAT registration

• In Poland – if you run a business, you are obliged to settle VAT in accordance with Polish regulations. VAT exemptions (up to PLN 200,000 annual turnover) are theoretically possible, but in practice, Amazon often requires a VAT number during registration anyway.
• In other EU countries – registration becomes necessary when you store goods there (e.g., FBA in Germany) or exceed the sales threshold for a given country.

VAT for logistics models: FBM vs FBA

• FBM (Fulfilled by Merchant) – if you ship from Poland without storing goods in other countries, you can settle sales in Poland and report them in the VAT OSS.
• FBA (Fulfillment by Amazon) – in this case, goods go to Amazon warehouses, e.g., in Germany or France. Simply storing products in a given country means an obligation for local VAT registration and declaration submission.

VAT and sales to other EU countries

Since July 2021, the VAT OSS (One Stop Shop), which facilitates cross-border trade. Thanks to it, you can settle sales to consumers in other EU countries in one place – in Poland. But beware: OSS only works if you do not store goods outside of Poland. If you use FBA in another country, OSS is not enough, and you must register for VAT locally.

Obligation to issue invoices and EU VAT number

Amazon requires sellers to be able to generate correct invoices in accordance with tax law. In practice, this means having an active EU VAT number, which allows for intra-community transactions. Lack of proper documents or delays in issuing invoices can lead to listing blocks, especially in demanding markets like Germany.

👉 Key principle: you sell in another country = check if your products are physically located in a warehouse outside of Poland. If so, local VAT becomes mandatory.

VAT OSS – simplified settlement procedure

The VAT OSS (One Stop Shop) was introduced in July 2021 to simplify life for sellers operating cross-border in the European Union. Thanks to it, you don't have to register for VAT separately in every country where you have customers – one registration in Poland and one quarterly settlement are sufficient.

What is VAT OSS

This is a special tax procedure that allows you to settle B2C sales of goods (to consumers) across the entire EU through the tax office in the country where you operate – for Polish companies, this will be the Polish tax office.

When to use OSS

OSS works when:

• you ship goods from Poland to consumers in other EU countries,
• you do not store goods outside of Poland (meaning you operate under FBM or FBA exclusively from a Polish warehouse).

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

Advantages of OSS

• One settlement instead of many – you don't have to keep separate accounts in each country.
• Time and cost savings – you avoid additional registrations and reports.
• Transparency – settlements are handled centrally by the Polish tax office.

OSS limitations

OSS also has its limitations:

• does not work when you use Pan-EU FBA – because in this model, Amazon replicates stock across many countries, which means local VAT registrations are necessary,
• requires monitoring correct VAT rates for each country you sell to,
• applies only to sales to consumers (B2C), not B2B transactions.

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

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

The moment you start using FBA in countries other than Poland or you enable the Pan-EU, the obligation to register for local VAT arises. This is due to the fact that simply storing goods in a given country constitutes a "fixed establishment" and creates tax obligations.

When local VAT registration is required

• 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 as part of Pan-EU.
• If you make local sales above the thresholds not covered by OSS.

In practice, this means that even if your company operates in Poland, by holding stock in a DE, FR, or IT warehouse, you must have a local VAT number there and submit declarations.

Examples of countries where Polish sellers most often register for VAT

• Germany (DE) – Amazon's largest 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 for 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 from 4 to 12 weeks, depending on the office.
• Costs depend on whether you do it yourself or through a specialized company. Typically, you should expect to pay from €300 to €800 for registration and additional monthly reporting costs.
• Amazon verifies VAT numbers and may block listings if they are not provided in Seller Central.

Reporting obligations

• After registration, you must submit regular VAT declarations in the given country (most often monthly or quarterly).
• In some countries, additional reports are required, e.g., Intrastat for intra-EU trade.
• Failure to submit declarations on time incurs penalties and – worse still – can lead to your Amazon account being blocked.

👉 Therefore, when planning Pan-EU, you need to consider not only logistics costs but also full VAT handling in several countries simultaneously. In practice, many sellers use the services of accounting firms specializing in e-commerce, which manage these settlements on their behalf.

EPR (Extended Producer Responsibility) – new regulations for sellers

Since 2022, alongside VAT obligations, another requirement has emerged on Amazon – EPR (Extended Producer Responsibility), or "Extended Producer Responsibility." This is an EU system aimed at shifting part of the waste-related costs to entities placing products on the market. In practice, this means that sellers must ensure proper registration and reporting for packaging waste, electronics, batteries, or furniture – depending on the product category.

What is EPR

EPR covers obligations related to:

• packaging – every seller shipping packages must account for the quantity 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 the necessity of obtaining a local producer number (EPR number) and regular reporting of volumes placed on the market.

In which countries Amazon requires EPR numbers

Currently, Amazon particularly enforces EPR in:

• Germany (DE) – obligation to register in the LUCID system (packaging), as well as with relevant organizations for electronics and batteries.
• France (FR) – EPR obligations cover packaging, electronics, batteries, furniture, textiles, and other categories.

Amazon has introduced special 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 appropriate system in a given country (e.g., LUCID in Germany, ADEME system in France).
• The seller must sign an agreement with an approved waste management organization and regularly report quantities (e.g., weight of packaging placed on the market).
• The obligation applies to every seller, who sends products to consumers in a given country – not only manufacturers, but also resellers and distributors.

Consequences of non-registration

Amazon takes EPR very seriously because it bears joint and several liability for sellers. A missing EPR number means that:

• Your listings will be blocked in that country,
• in some cases, Amazon will withhold your payments until the numbers are provided,
• local authorities may impose financial penalties.

👉 Therefore, EPR is an obligation that cannot be postponed. Companies targeting sales in Germany and France, in particular, must plan this process before launching on Amazon.

How Amazon controls VAT and EPR

Amazon does not give sellers free rein when it comes to taxes. As a marketplace, it bears joint and several liability for VAT settlements and fulfillment of EPR obligations by sellers. This means that if a seller is not compliant with regulations, Amazon may also face consequences – which is why the platform actively monitors compliance itself.

VAT verification in Seller Central

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

EPR verification in Seller Central

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

Automatic listing blocks

Amazon has automated control mechanisms:

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

👉 In practice, this means that without organized taxes, selling on Amazon simply doesn't work. This is why so many sellers choose to cooperate with accounting firms specializing in e-commerce, which handle all formalities.

Common seller mistakes and how to avoid them

Many sellers entering Amazon focus on listings, ads, or photos, and postpone the topic of taxes "for later." This is a mistake that often results in account suspension at the least opportune moment – for example, during peak sales before holidays. Here are the most common problems we observe:

1. No VAT registration in Germany for FBA

Germany is Amazon's largest market in Europe and the most frequently chosen location for FBA warehouses. Many sellers are unaware that merely storing goods in DE means a VAT registration obligation. Ignoring this regulation quickly leads to blocked listings and loss of sales opportunities.

How to avoid this?
Check where Amazon ships your inventory. If it's Germany, immediately start the VAT registration process and prepare to file monthly returns.

2. Ignoring sales thresholds and OSS

Some sellers assume that since they settle their taxes in Poland, they can sell throughout the EU without restrictions. However, exceeding the €10,000 annual sales threshold to consumers in the EU means an obligation to use OSS. Failure to register results in tax arrears and the risk of penalties.

How to avoid this?
Monitor your turnover in foreign markets and, if necessary, register for OSS with the Polish tax office.

3. Failure to submit monthly/quarterly reports

VAT registration in another country is just the beginning. You also need to regularly file VAT returns, often monthly or quarterly. Many sellers forget about this, and financial penalties can be very severe.

How to avoid this?
Set up a reporting schedule and use the services of an accounting firm that will keep track of deadlines.

4. Delaying EPR registration

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

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

👉 Taxes and compliance are not an "option" on Amazon. They are an obligation, which must be in order from day one. This way, you'll avoid unnecessary sales interruptions and can focus on what's most important – scaling your business.

FAQ – frequently asked questions about VAT and EPR

The topic of taxes on Amazon often raises the most questions. Sellers ask if it's possible to sell without VAT, how OSS works, how much EPR costs, or how long registration takes in Germany. We've gathered the most frequent questions and prepared short, specific answers to help you better plan your sales and avoid surprises.

Can I sell without VAT?‍

Theoretically, in Poland, there is a VAT exemption up to PLN 200,000 annual turnover, but in practice, selling on Amazon without a VAT number is severely limited. Amazon very often requires an active VAT number during account registration, and the lack of this number can lead to offer blocking. Additionally, if you plan to sell in the EU, VAT will become mandatory when exceeding the €10,000 annual threshold (B2C sales outside Poland).

Does OSS exempt you from VAT registration in DE/FR?‍

No. OSS only works if you ship goods from Poland (or any other single warehousing country) and do not store inventory abroad. If you use FBA in Germany, France, or another country, you must register locally for VAT, even if you use OSS.

How much does EPR cost in Germany/France?‍

EPR cost depends on product categories and sales volume.

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

How long does VAT registration take in Germany?‍

VAT registration in Germany usually takes from 6 to 12 weeks, depending on the workload of the authorities and the completeness of documents. In practice, it's advisable to start the process earlier, even before shipping inventory to FBA warehouses. Remember that Amazon may suspend sales in Germany until you add a valid VAT number to your account.

👉 A well-prepared tax strategy helps avoid surprises and blocks. If you're unsure which obligation applies to your company, it's worth seeking help from VAT and EPR specialists.

Summary + next steps

Taxes are the foundation of selling on Amazon. You can have a great product, an attractive price, and a refined listing, but if you don't take care of VAT and EPR, sooner or later your account will be blocked, and sales will halt. Amazon operates in full compliance with EU regulations and requires the same from its sellers – therefore, without an organized tax strategy scaling your business in Europe is impossible.

The good news is that it can be organized. You start with VAT in Poland + OSS, and when you expand using the FBA/EFN model, you add registrations in the warehousing countries. With Pan-EU, you must prepare for greater obligations (local VAT + EPR), but in return, you gain the greatest sales potential and highest conversion.

👉 If you don't want to waste time on regulatory complexities, we can help.

We'll help you navigate VAT and EPR stress-free – from registration to reporting.
Contact us, and we'll prepare a personalized action plan for you, ensuring that taxes become a solid foundation for your Amazon sales growth, not a barrier.