Quids and Quills

accountancy for authors

EU VAT response – Amazon

 SELLERS! THEY WILL HANDLE ALL THE VAT REQUIREMENTS.
EU BYERS! THEY WILL NOW QUOTE LIST PRICES INCLUDING VAT
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AUTHORS! YOUR ROYALTIES WILL BE BASED ON LIST PRICE *LESS* RELEVANT VAT.
NOTE: KDP authors will be directed to choose price points that will now include VAT.
02 Jan 2015
As a publisher with Kindle Direct Publishing, the European Union (EU) tax laws have changed regarding the taxation of digital products (including eBooks). Previously, Value Added Tax (VAT) was applied based on the seller’s country; now, VAT will be applied based on the buyer’s country. As a result, starting on January 1, 2015, you can set your suggested customer prices to include VAT for all of the EU marketplaces: Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.es, Amazon.it, and Amazon.nl.

Here’s a summary of changes:
List Prices: We’ve added applicable VAT based on the primary country of the marketplace to the VAT-exclusive list prices for all of your books on the EU marketplaces. You will see your updated list price with the applicable VAT added on your KDP pricing grid; you will also see the price without VAT which is what you can use to calculate your estimated royalties.

Minimum and Maximum List Prices: The minimum and maximum list prices for the 35% and 70% royalty plans in the EU have been updated to include VAT. Books must be priced within the new ranges. If your list price falls outside of the new range we will adjust it to meet the new minimum or maximum to ensure you remain in your chosen royalty plan. Learn more about the new minimum and maximum list prices: https://kdp.amazon.com/help?topicId=ANRML55B0BWBK

Price Matching: As always, if you list books with a lower list price on other sites, we may price match to the lower price. We recommend you review your list prices on or after January 1st to determine if you need to make any updates.

List Prices Based on Your U.S. Price: If you select to match the EU marketplace prices automatically from the U.S. list price, we will convert the U.S. list price to local currency and that will be the list price that includes VAT, we won’t add additional VAT onto that price. Learn more about setting list prices for EU Kindle stores: https://kdp.amazon.com/help?topicId=A30464Q6OVH578

Other reminders:
Detail Pages: The price on your EU detail pages will be updated to show the new VAT-inclusive list price that you see in your KDP account. These updates will start on January 1st and will continue over the next few weeks.

Royalties: Any sales that occur before your price is updated on your detail page will be adjusted so that you earn the right royalties. We will manually adjust your royalties so that they are based on the VAT-exclusive price that you provided before January 1st. Once your list price is updated on your detail page to include the applicable VAT, we will pay your royalties on the VAT-exclusive price. Learn more about how EU prices affect royalty payments: https://kdp.amazon.com/help?topicId=A30XCAGX3E5QDC

Pre-orders: For pre-orders placed before January 1, 2015 on books that will release after January 1, 2015, we will pay your royalty as though VAT were still only 3%.

Kindle Countdown Deals: Any Kindle Countdown Deals scheduled on Amazon.co.uk on or after January 1, 2015 will run as expected, even if the list price does not fit the new requirements of being priced between £1.99 and £15.99, including the VAT.

Lastly, as of January 1, 2015, Italy has put in place a new law. Applicable VAT for eBooks sold in Italy will depend on whether the book has an ISBN. All eBooks with an ISBN will have a 4% VAT rate and eBooks without an ISBN will have a 22% VAT rate. This is the rate that is added to your price on January 1st and is the rate deducted when an Italian customer purchases your book. If you obtain an ISBN after January 1st, the 4% VAT rate will then apply for future sales but we will not adjust your list price automatically.

We hope you find this information useful and encourage you to review our Help pages any time.

Best regards,
The Kindle Direct Publishing Team

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Hello Clare,
Yes, since Amazon Media EU Sarl (AMEU) is the seller of record for eBook sales in European Union Kindle stores, AMEU collects and pays the VAT for these sales. Publishers do not need to collect and pay VAT themselves for these sales.

I hope this helps. Thanks for using KDP.

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Dec 16 at 8:59 PM
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