Amazon's VAT Calculation Service (VCS) can also be used in combination with Taxdoo. However, the following points must be observed.
- Taxdoo evaluates each Amazon transaction independently or rather regardless of the VCS - based on a dedicated EU-wide sales tax logic. The reasons for this are among others:
- The VCS cannot monitor delivery thresholds.
- The VCS does not recognize all special economic zones. These are certain geographical areas in the EU (e.g. Helgoland) which are considered third countries for VAT purposes, so that deliveries to these areas are tax-free.
- The determination of reduced tax rates by the VCS is not directly based on the customs tariff number, as required by VAT law.
- In the context of cross-border B2B deliveries within the EU, the VCS does not continuously check the VAT ID of the purchaser, which has been mandatory since 01.01.2020 - see here.
- If you enter a separate VAT ID in the VCS settings for a specific EU country, the VCS will consider cross-border deliveries to end consumers IN this country as taxable there. Example: You are registered for tax purposes - among others - in Spain under the Pan EU program of Amazon, and deposit your Spanish VAT ID in the VCS. In this case, the VCS considers all deliveries from other EU countries (e.g. from Germany) to end users in Spain as taxable in Spain.
- If you have deposited a VAT ID in the VCS for a certain country for which the delivery threshold is NOT exceeded, it is mandatory to waive the application of the delivery threshold of the respective country of destination (in the above example: Spain) in the country of origin (in the above example: Germany). If deliveries are also made from Poland (e.g. within the framework of CEE or Pan EU), the procedural peculiarities of waiving the delivery threshold in Poland must be taken into account - see here.
- These delivery threshold waivers must be deposited with Taxdoo.
- If the other case applies - the delivery threshold has been exceeded for a certain country, but there is no tax registration there - Taxdoo evaluates these transactions correctly; however, the VCS comes to incorrect results due to the missing VAT ID in the country of destination.