Amazon has announced a significant update regarding the legal entities that provide its services in Europe. Effective August 1, 2024, all services currently supplied by Amazon Services Europe S.à r.l. (ASE) will transition to Amazon EU S.à r.l. (AEU). This change affects Selling on Amazon, Fulfillment by Amazon, and all other related services. Here’s what you need to know about this transition.
Key Changes
Transition from ASE to AEU
From August 1, 2024, Amazon EU S.à r.l. (AEU) will replace Amazon Services Europe S.à r.l. (ASE) as the provider of all Amazon services. This includes all agreements, policies, and terms and conditions that currently reference ASE, such as Amazon Payments agreements, which will be updated to reflect AEU as the new provider.
Updated Invoicing All invoices issued by Amazon after August 1, 2024, will be issued by AEU instead of ASE. This change affects how VAT is applied and processed, particularly for sellers based in certain European countries.
Country-Specific Invoicing
For companies established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, or Sweden:
- You will be invoiced by the AEU branch in your country of establishment.
- Local VAT rules will apply, and VAT will be deducted from Amazon fees.
- In most cases, you should be able to recover this VAT through your regular VAT return process.
- It is recommended to contact your tax advisor for detailed information on recovering VAT according to your local regulations.
For companies not established in the aforementioned countries:
- You will be invoiced by the AEU head office in Luxembourg.
- There will be no change in how VAT is applied to Amazon fees for these sellers.
- Impact on Your Amazon Account This legal entity change does not impact:
Your account access
Listings
Product pricing
Customer reviews
Selling services
The price of services
Recommendations
To ensure a smooth transition and proper handling of VAT, it is advisable to:
Review your current agreements and terms: Understand how they will be updated to reflect the new legal entity.
Contact your tax advisor: Get specific guidance on how to manage and recover VAT under the new structure, particularly if your company is based in one of the affected European countries.
Monitor communications from Amazon: Stay informed about any additional updates or requirements related to this change.
Conclusion
The transition from Amazon Services Europe S.à r.l. (ASE) to Amazon EU S.à r.l. (AEU) is an important update for all Amazon sellers in Europe. By understanding the changes and taking proactive steps, you can ensure compliance with local VAT regulations and maintain seamless operations on Amazon. This change underscores Amazon’s commitment to optimizing its services and regulatory compliance across different regions.