AWS Marketplace enhances VAT payment process for deemed supply
AWS Marketplace has launched a self-service feature for sellers to manage VAT invoices and receive automated payments for digital services in the EU, Norway, and the UK, simplifying tax compliance and reducing administrative tasks.
AWS Marketplace has introduced a new self-service feature that allows sellers to efficiently manage Value Added Tax (VAT) invoices and receive automated VAT payments for deemed supply of digital services within the European Union, Norway, and the United Kingdom. According to VAT laws in these regions, when AWS Marketplace facilitates the sale of digital services, a deemed supply arrangement is established between the sellers and the marketplace. This requires sellers to invoice the relevant AWS Europe, Middle East, and Africa (EMEA) SARL branch that handles their transaction to receive VAT payments.
The new feature provides sellers with a unified platform on AWS Marketplace to submit VAT invoices and receive payments, thereby simplifying tax compliance under deemed supply scenarios. Sellers can access this service through the AWS Marketplace Management portal or AWS Partner Central, enabling them to submit VAT invoices, track their status in real-time, and receive automated VAT payments. The system is designed to automatically validate invoices against required fields and disburse VAT amounts upon receipt of buyer payment.
Additionally, sellers have the option to consolidate multiple deemed supply transactions into a single invoice per period, as long as these transactions involve the same AWS EMEA branch and currency. Sellers can also submit invoices ahead of buyer payment, with the system processing disbursements automatically when all conditions are fulfilled. The enhanced reporting tools available through Seller Reports assist sellers in identifying eligible transactions and reconciling disbursements for audit and financial reporting purposes.
This new capability replaces the previous manual process and eliminates the need for separate platform onboarding, significantly reducing the administrative workload associated with tracking VAT invoices and payments. It is available for transactions where both the seller and buyer AWS accounts are located in the same country and are conducted via the AWS EMEA branch across 20 jurisdictions, including Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, and the United Kingdom.
For further information on VAT payment for deemed supply transactions and invoice submission requirements, sellers can refer to the AWS Marketplace Seller Guide or the VAT on Deemed Supply FAQs.