July 23, 2019

What is Amazon VAT Calculation Service?

What is the Amazon VAT Calculation Service, and how can it help you?

Amazon Sellers in the UK and Europe are starting to receive emails about the Amazon VAT Calculation Service (VCS). This new service will be available to any Amazon Seller who expects to sell to businesses in areas using VAT to tax purchases in the next few weeks.

What is the Amazon VAT Calculation Service, and how can it help you?

It is also the method Amazon has chosen for identifying British and European candidates for their Business Seller badge.

Coming hot on the heels of the launch of Business Prime in the same areas, the Business Seller program is designed with the same goal in mind; capturing B2B custom.

The VAT Calculation Service and Business Sellers

The VCS itself is a simple; if you’re registered, it will automatically calculate your product’s price without VAT and display that to business accounts. When they purchase from you, they will be able to download an automatically-generated VAT invoice.

This makes your products more attractive and makes it easier for them to do business with you. Both of these increase the chance you’ll make the sale. On top of that, you’ll receive a Business Seller badge.

The Business Seller badge will be displayed alongside your product listings for business customers, just like Amazon’s Choice and Prime badges already are. This tells anyone shopping for their business that they can easily handle VAT obligations when buying from you.

The reduced display cost and the badge have both also been confirmed as Buy Box factors by Amazon. So just having the badge makes you more likely to win the Buy Box for business customers. And over 80% of purchases on Amazon go to the Seller in the Buy Box.

Business Sellers receive other features for free, all designed to help them win orders from B2B customers. If you fill bulk orders for B2B customers, you may even see reduced selling fees – depending on the category you’re in.

The exact details on VCS aren’t yet available. But if your business can cater to B2B buyers in the UK or the EU, it seems likely to be a good deal for you.

Amazon report that Business Sellers have seen an average of a 50% increase in sales volume in their first month.