Do I need a VAT number to sell on Amazon Europe?

Yes, if you exceed the EU threshold (€10,000 in OSS-eligible sales, or country-specific thresholds). Amazon may withhold your payouts until you provide a valid VAT number. Use Amazon's VAT services or a dedicated VAT agent to register in required countries.

What happens if I don't register for VAT?

You risk penalties, back-tax assessments, and interest charges. Tax authorities can pursue you years after the fact. In the EU, penalties can be 10–25% of unpaid VAT. In the US, you may face audit assessments and in some states, criminal liability for willful non-compliance.

Can I claim back VAT I've paid?

Yes — as a registered business, you can reclaim input VAT on business expenses. However, rules vary by country. Some countries allow full input VAT recovery; others restrict it. Consult a local tax advisor for your specific situation.

Do I need VAT for Shopify store?

Only if you exceed the threshold for your target market. If you're US-based selling only to US customers, you need sales tax registration where you have nexus — not VAT. If you sell to EU or UK customers, you need VAT registration above the applicable thresholds.

Ecommerce

VAT for Ecommerce Sellers: Complete Guide 2026

April 16, 2026 8 min read

Ryan Cole

Senior EcomCalcTools Analyst · Updated April 2026

★ Quick Answer

VAT (Value Added Tax) applies to ecommerce sellers selling to EU/UK buyers. Sellers under €10,000/year can use the OSS scheme to file VAT in one country for all EU sales. US sales tax nexus thresholds vary by state from $100K to $500K in revenue. IOSS simplifies import VAT for orders under €150. Always consult a tax professional for your specific situation.

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