Selling on Amazon in Spain

Are you an Amazon seller?

Do you use the Amazon logistic center in Madrid or Barcelona?

It is mandatory to register for VAT in two cases: if you have stock in a warehouse in Spain or if you sell over 35,000€ per year. That is why Amazon requires a VAT number in Spain. You will need the VAT number to sell to your customers because it is mandatory to identify yourself on your invoices and to file Spanish VAT tax forms. Be aware that if you don't have a VAT number, Amazon can legally block your seller account. This applies to Seller Pro and Amazon logistics services.

If you plan to be registered as an Amazon vendor using FBA then you will need to register as a company in Spain. Otherwise, you can also register as a freelancer or as a non-resident entity in Spain:

• If you have an existing company outside of Spain that is already registered for VAT and in good standing, we can register the company in Spain and obtain a non-resident Spanish VAT number for you with our VAT registration service.
• If you want to create a new company in Spain, we can form the company for you and handle all the accounting and tax filing for your company, once formed.
• If you are a freelancer (self-employed) living in Spain, we can get you registered in Spain with a personal tax ID number. In this case, you will need to file simplified accounting and tax filing.

There are other options, such as creating a branch office in Spain, but these options are more expensive and are not the best fit for Amazon's request.

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Amazon blocked my seller account because I don't have a VAT number. Is that legal?

Yes, it is legal. By law, if you have the pan-European option for sales, your products can be sold anywhere in Europe, so if you are a UK provider selling in the UK, if a customer buys from Spain, you will need a Spanish VAT number. Amazon will require you to have it.

What are the requirements to become an Amazon seller?

• The entity must be a resident of one of the countries in Amazon's list of 120 countries.
• You must have a bank account in that country.
• You must have a tax ID. In Spain, this is the NIF, CIF, or VAT number.
• The products must be authentic and accepted by Amazon. These are the products Amazon does not accept.

Case study in EU sales via Amazon

An American corporation wanted to sell their products in the EU via Amazon. Together we mapped out the following steps:

Step 1: Get a VAT number in Spain.

We registered a new company in Spain with a resident VAT number.

Step 2: Invoice without VAT (B2B) to the rest of Europe.

We applied for VIES registration to be able to invoice other VIES-registered companies within the EU. Our application was approved four days later.

Step 3: Get the VAT refunded monthly.

Almost all of the product imported was sold in the EU, mainly outside Spain. Without monthly VAT refunding, the company would have to wait until July of the following year for the VAT refund. The application for monthly VAT refunding was sent and approved by the Spanish tax office. Approval meant that the company must also be included in the SII registration for monthly eInvoice reporting.

Step 4: Apply for registration of deferred VAT payment.

Deferred VAT payment (IVA diferido) means that the company no longer has to pay VAT when the goods leave customs. VAT is taken care of during the monthly reporting.

Step 5: No VAT registration necessary in the rest of the EU.

Most of the company's sales are through Amazon. The company registered in Amazon for VAT to avoid having to deal with VAT in all the EU countries. For all of its EU sales, the company invoices Amazon Luxemburg as its only client.