Amazon may collect Value Added Tax (VAT) on behalf of vendors depending on the country and the type of transaction. The company is obligated to collect VAT on sales made through its marketplace and remit it to the relevant tax authorities in many countries.
If the vendor is enrolled in Amazon’s VAT Calculation Service, then Amazon will calculate and collect the VAT on behalf of the vendor for sales made on the Amazon platform. Amazon will then remit the VAT to the relevant tax authorities.
If a vendor uses the Amazon VAT Calculation Service, Amazon will calculate, collect, and remit VAT on the vendor’s behalf for sales made on Amazon’s platform.