Why do you pay VAT on Amazon ads?
Because Amazon Ads adds your country's VAT or GST to your ad spend when you have no VAT number. A registered business deducts that tax in its returns, so it costs it nothing; an author or a small seller who is not registered cannot, so it is a real cost on top of every click: 20% in France, 19% in Germany, 21% in Spain.
Amazon treats its advertising fees as electronically supplied services: sold to someone without a VAT number, they carry the tax of the advertiser's country. Amazon does not publish what each of its companies adds, country by country, so the tax line of your own Amazon Ads invoice is the figure to trust.
Tax lost per year = ad spend per month × 12 × tax rate
Can you get the VAT on Amazon ads back?
Only by registering for VAT (or leaving your country's small-business scheme), and only if your own income gives you the right to deduct. For KDP royalties, it does in France, Germany, Ireland, Sweden, United Kingdom, India, Japan, Australia, and Canada, and in United Arab Emirates, Saudi Arabia, and South Africa once you pass a voluntary-registration threshold. Merch on Demand designers often get the same answer, not always: pick « Merch on Demand designer » in the calculator to see theirs.
In Netherlands, Belgium, Poland, Singapore, New Zealand, and Mexico it should too, but that is a reading of the law that no tax office has written down for Amazon royalties.
Your royalties carry no VAT of their own: on the EU stores, Amazon Media EU S.à r.l. in Luxembourg pays them and accounts for the tax, and outside the EU they are usually a zero-rated export. What counts is that the same activity would give the right to deduct in your own country (article 169 of the EU VAT directive).
Registering commits you, often for years: 2 years in France (article 293 F of the tax code), 5 years in Germany (§ 19 UStG), at least 2 years in Japan and Singapore. You file returns for all that time, which can mean paying an accountant: weigh that against the tax you get back.
Who cannot get the VAT back?
Authors in Spain. Authors' rights are exempt from VAT there and the exemption cannot be waived, so a KDP author who registers still cannot deduct the VAT on his ads. Spain's tax office wrote it for an Amazon KDP author in binding ruling V0218-23 (13 February 2023): such an author makes only exempt operations that give no right to deduct, in any measure.
- : probably not either. Authors are exempt there, or outside the scope of VAT, and no tax office has said whether self-publishing through KDP counts.
- India: registering turns the GST into a credit, but royalties are a zero-rated export, so the credit piles up until you claim a refund. A cash advance, not a saving.
- Türkiye, Egypt, and Brazil: not verified. The rules exist, but no official text applies them to Amazon royalties; ask an accountant.
- The United States has no VAT. Since 1 October 2025, Amazon adds Washington State sales tax for a Washington billing address, and nothing can be deducted.
What if you sell products to consumers?
Then registering usually costs more than it saves. You deduct the VAT on your ads, but you must also charge VAT on every sale, and consumers cannot get it back: unless you can raise your prices, the VAT you hand over on your sales outweighs the VAT you recover on your ads.
Example in France: a seller under the small-business scheme with €5,000 of sales and €1,000 of ads a month keeps €3,800. Registered, her ads cost €1,000 instead of €1,200, but €833.33 of her sales is now VAT to hand over: she keeps €3,167, €633.33 less every month. Registering pays when your sales carry no VAT to pay, like royalties, or go to businesses that deduct it.
Example: €3,000 a month of Amazon ads in France
A KDP author in France under the small-business scheme (micro-entrepreneur) who spends €3,000 a month on Amazon ads pays €600 of VAT a month on top: €7,200 a year she cannot get back.
If she opts for VAT (article 293 F of the tax code, for at least 2 years), she deducts that VAT in her returns. Her royalties, paid by Amazon Media EU in Luxembourg, still carry no French VAT, and authors' rights would be taxable in France, which keeps her right to deduct (article 271 V d). Her ads then cost €3,000 a month instead of €3,600, less what her returns cost her.
€3,000 × 12 × 20% = €7,200 of VAT a year
VAT on Amazon ads, country by country
The standard rate of each of the 24 countries we checked, and whether a KDP author who registers can deduct the tax on his ads, read in each country's law and tax-office pages (linked at the bottom of this page).
“Not verified” means no official source settles the case: ask an accountant before you decide.
| Country | Tax | Standard rate | KDP author who registers |
|---|---|---|---|
| France | VAT | 20% | Yes |
| Germany | VAT | 19% | Yes |
| Spain | VAT | 21% | No |
| Italy | VAT | 22% | No |
| Netherlands | VAT | 21% | Yes |
| Belgium | VAT | 21% | Yes |
| Ireland | VAT | 23% | Yes |
| Poland | VAT | 23% | Yes |
| Sweden | VAT | 25% | Yes |
| United Kingdom | VAT | 20% | Yes |
| Türkiye | VAT | 20% | Not verified |
| United Arab Emirates | VAT | 5% | Yes, above AED 187,500 |
| Saudi Arabia | VAT | 15% | Yes, above SAR 187,500 |
| Egypt | VAT | 14% | Not verified |
| India | GST | 18% | Yes |
| Japan | Consumption tax | 10% | Yes |
| Australia | GST | 10% | Yes |
| Singapore | GST | 9% | Yes |
| New Zealand | GST | 15% | Yes |
| United States | Sales tax | No VAT (Washington: sales tax) | No VAT |
| Canada | GST/HST | 5% GST, 13% to 15% HST | Yes |
| Mexico | VAT | 16% | Yes |
| Brazil | CBS/IBS | 0.9% CBS + 0.1% IBS, not charged in 2026 | Not verified |
| South Africa | VAT | 15% | Yes, above R 120,000 |
What should you do?
First, read the tax line of your Amazon Ads invoices: it is what you really pay. Then, if this page says registering would get it back, ask an accountant what the returns would cost you and how long the option commits you, and compare that with the tax you would recover each year.
- Once registered, add your VAT number to your Amazon Ads billing settings and claim the tax in every return.
- If you sell products to consumers, count the VAT you would charge on your sales before you register.
- If nothing can be recovered, count the tax as part of your ad cost when you judge your ACOS and your bids.
Sources
- Amazon Ads help: VAT on Electronically Supplied Services
- Amazon Ads help: Register your Tax ID
- KDP help: EU VAT Invoices
- Amazon Merch on Demand Services Agreement
- Amazon Merch on Demand: Promote Your Merch
- Council Directive 2006/112/EC (EU VAT directive)
- France: BOFiP, BOI-TVA-DECLA-40-10-20 (franchise en base, option art. 293 F CGI)
- France: BOFiP, BOI-TVA-DED-10-20 § 50 (art. 271 V d CGI)
- France: BOFiP, BOI-TVA-CHAMP-10-10-60-20 (auteurs)
- Germany: § 12 UStG (Steuersätze)
- Germany: § 19 UStG (Kleinunternehmer)
- Germany: § 15 UStG (Vorsteuerabzug)
- Spain: Dirección General de Tributos, consulta vinculante V0218-23
- Spain: Ley 37/1992 del IVA
- Spain: Dirección General de Tributos, consulta vinculante V2622-20
- Italy: DPR 633/1972 (IVA)
- Italy: Agenzia delle Entrate, risposta n. 540 del 12 novembre 2020
- Italy: Legge 190/2014, art. 1, commi 54-89 (regime forfettario)
- Netherlands: Wet op de omzetbelasting 1968
- Netherlands: Belastingdienst, vrijstelling voor componisten, schrijvers, cartoonisten en journalisten
- Belgium: Code de la TVA (Fisconetplus)
- Belgium: Arrêté royal n° 19 du 15/12/2024 (option)
- Ireland: Revenue, Current VAT rates
- Ireland: Revenue, Elect to register for VAT
- Ireland: Revenue, Royalties – Copyrights
- Poland: Ustawa o podatku od towarów i usług (Dz.U. 2026 poz. 1263)
- Poland: podatki.gov.pl, Stawki VAT
- Sweden: Mervärdesskattelag (2023:200)
- Sweden: Skatteverket, Momssatser
- United Kingdom: GOV.UK, VAT rates
- United Kingdom: HMRC, VAT Notice 741A: place of supply of services
- United Kingdom: Value Added Tax Act 1994, Schedule 1, paragraph 10
- Türkiye: Katma Değer Vergisi Kanunu n° 3065
- Türkiye: GİB, KDV Genel Uygulama Tebliği (2026)
- United Arab Emirates: Federal Decree-Law No. 8 of 2017 on Value Added Tax
- United Arab Emirates: Executive Regulation of Federal Decree-Law No. 8 of 2017
- Saudi Arabia: ZATCA, Implementing Regulations of the VAT Law
- Saudi Arabia: ZATCA, Unified VAT Agreement for the GCC
- Egypt: VAT Law No. 67 of 2016
- Egypt: ETA, VAT guidelines for digital services and other remote services provided by non-residents (2023)
- India: GST Council, GST Rates of Services
- India: CBIC, Circular No. 172/04/2022-GST
- India: CBIC, IGST Act, section 2
- Japan: 国税庁 タックスアンサー No.6303 (消費税の税率)
- Japan: 国税庁 タックスアンサー No.6551 (輸出取引の免税)
- Japan: 国税庁 消費税課税事業者選択届出手続
- Australia: A New Tax System (Goods and Services Tax) Act 1999
- Australia: ATO, Registering for GST
- Australia: ATO, Exports and GST
- Singapore: IRAS, Factors to consider before registering voluntarily for GST
- Singapore: IRAS, Providing international services
- New Zealand: Inland Revenue, IR375 GST guide
- New Zealand: Inland Revenue, GST on cross-border supplies of remote services
- United States: Amazon Ads help: Washington State Sales Tax Requirements for Amazon Ads
- United States: Washington DOR, Local sales & use tax rates
- United States: RCW 82.04.050
- Canada: CRA, GST/HST calculator (and rates)
- Canada: Excise Tax Act, Schedule VI, Part V
- Canada: CRA, Type of supply
- Mexico: Ley del Impuesto al Valor Agregado (Cámara de Diputados)
- Mexico: Ley del Impuesto al Valor Agregado (Orden Jurídico Nacional)
- Brazil: Lei Complementar nº 214/2025
- Brazil: Amazon Ads help: Understand your invoice
- South Africa: SARS, Register for VAT
- South Africa: SARS, VAT 404 Guide for Vendors
- South Africa: SARS, FAQs: Supplies of Electronic Services