Amazon to begin charging 17.5 VAT

E-Commerce giant Amazon to implement VAT on some of its web services from next month.

The company on Monday informed customers that effective March 1, 2020, Amazon Web Services (AWS) would begin to charge Value Added Tax at a rate of 17.5% to Barbadian customers.

The Seattle-based company detailed its intention in an email correspondence titled “Important Announcement” in which it noted that the new measures are consistent with tax legislation which came into effect on December 1, 2019. The company said that a tax compliant invoice would be issued to Barbadian customers from April 1 this year.

The email was reportedly sent to all customers whose records indicate that their Billing Address or Contact Address is in Barbados. It explained to customers that the website calculates taxes based on the customer location, which is determined by Amazon’s Account Location hierarchy.



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