AWS Marketplace streamlines VAT payment for deemed supply transactions

AWS Marketplace now offers sellers a streamlined self-service process to submit Value Added Tax (VAT) invoices and receive automated VAT disbursements for deemed supply of digital services in the European Union, Norway, and the United Kingdom. Under the European Union, United Kingdom, and Norwegian VAT laws, when AWS Marketplace facilitates digital service sales, the law creates a deemed supply arrangement between sellers and the marketplace. To receive VAT payment, sellers are required to invoice the relevant AWS Europe, Middle East, and Africa (EMEA) SARL branch facilitating their transaction. This new capability provides sellers a unified experience within AWS Marketplace to submit VAT invoices and receive VAT payments, simplifying tax compliance under deemed supply arrangements.

Sellers can now access the new experience through AWS Marketplace Management portal or AWS Partner Central, submit VAT invoices, track invoice status in real-time, and receive automated VAT payments. The system automatically validates invoices against mandatory fields and disburses VAT amounts once buyer payment is received. Sellers can consolidate multiple deemed supply transactions into a single invoice per period, provided they relate to the same AWS EMEA branch and currency. Sellers can also submit invoices before buyer payment is received, with the system automatically processing disbursements when all conditions are met. Enhanced reporting capabilities through the Seller Reports help sellers identify eligible transactions and reconcile disbursements for audit and financial reporting purposes. This launch eliminates the previous manual process and separate platform onboarding while reducing the administrative burden of tracking VAT invoices and payments.

This capability is available for transactions where both seller and buyer AWS accounts are located in the same country when transacting via the AWS EMEA branch across 20 jurisdictions: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, and the United Kingdom.

To learn more about VAT payment for deemed supply transactions and invoice submission requirements, visit the AWS Marketplace Seller Guide or VAT on Deemed Supply FAQs.