Product Related Domestic Reverse Charge for Italian use cases on Amazon

As an Amazon seller, it is important for you to stay informed about these updates to ensure compliance with the new regulations.

Effective June 27, 2023, Amazon will be extending the current European VAT Calculation Service to include specific sales in Italy. This means that the product-related domestic reverse charge (0% VAT) will be applied to eligible sales that meet the following criteria:

  1. Sale of electronic items subject to product-related domestic reverse charge: In Italy, this includes products such as cell phones, computer chips, e-readers, laptop computers, tablet computers, or video game consoles.
  2. Domestic business-to-business sales: The changes in VAT calculations apply to sales made within Italy between businesses.
  3. Shipment value above applicable threshold: Unlike some other countries, in Italy, there is no specific threshold for the shipment value. Therefore, all eligible sales meeting the first two conditions will be subject to the new VAT calculation.

To learn more about the VAT Calculation Service and its implications for your business, you can visit the “VAT Calculation Service” page on the Amazon Seller Central Europe website. This resource provides detailed information and guidance to help you navigate the changes effectively. The link to the page is as follows: [Insert link: https://sellercentral-europe.amazon.com/help/hub/reference/G202120290]

It is important to note that by continuing to use Amazon’s selling services after the effective date, you are acknowledging and accepting these changes. To ensure a smooth transition and accurate compliance with the new regulations, it is advisable to consult with your tax adviser or professional for further details and clarification.

Here you can review a copy of the full announcement from Amazon:

Product Related Domestic Reverse Charge for Italian use cases

Hello,

Business-to-business product-specific VAT calculations are being extended to certain types of listings across Amazon’s European stores.

The current European VAT Calculation Service will be extended to include certain sales in Italy. Effective, June 27, 2023, we will apply the product-related domestic reverse charge (0% VAT) to sales that meet the following conditions:

–  Sale of electronic items subject to product-related domestic reverse charge. In Italy, this includes cell phones, computer chips, e-readers, laptop computers, tablet computers, or video game consoles.
–  Domestic business-to-business sales.
–  Shipment value is above applicable threshold. In Italy there is no threshold.

For more information, go to “VAT Calculation Service”:
https://sellercentral-europe.amazon.com/help/hub/reference/G202120290

Your continued use of selling services after date of effectiveness constitutes your acceptance of the changes. Contact your tax adviser for further details.

The Amazon Services Europe team

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