Can anyone explain this to me?

Sell On Amazon Global Selling
1

11 September 2024

Update to EU VAT establishment determination

We recently updated our European VAT calculation services methodology for Business-to-Business (B2B) sales to ensure that VAT is applied accurately based on your country of establishment.

Starting September 11, 2024, information received from the relevant Tax Authority-such as the address or the format of your VAT Registration Number will take precedence over the Registered Business Address you provide to determine your establishment status (for the UK, Spain, or Italy).|

If the information received from a Tax Authority indicates you’re non-established, non-resident domestic reverse charge rules will apply to your B2B domestic sales, in applicable countries, with no VAT applied rather than the local VAT rate."

If I am not vat registered how will this effect me more as from 1st Aug I am already giving VAT on fees.

Thanks

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If you’re not VAT-registered, this update should not directly impact your sales. However, it affects VAT determination for Business-to-Business (B2B) transactions, where the tax authority’s information now takes precedence over your business address. Since you’re already paying VAT on fees from August 1, this change applies more to sellers engaged in B2B transactions where VAT registration and reverse charge rules may come into play. If you remain unregistered, VAT rules for B2B sales don’t directly apply, but you’d continue paying VAT on fees as per your current arrangement.