Imagine your Amazon store in the Middle East reaching peak sales—only to face sudden penalties or even suspension due to unresolved Value-Added Tax (VAT) obligations. For sellers using Fulfillment by Amazon (FBA) in the region, tax compliance is a critical foundation for sustainable growth.
Amazon has recently reinforced the urgency of VAT registration for its Middle Eastern marketplace, warning sellers that grace periods for penalty exemptions will soon expire. Under local tax laws, non-resident sellers must complete VAT registration within 30 days of their first taxable sale to individual consumers. This 30-day countdown begins immediately upon generating FBA orders.
The platform mandates that FBA sellers submit VAT applications to tax authorities within this window. Failure to register or continuing sales without a valid VAT ID risks escalating fines from tax agencies, with severe cases potentially resulting in store closures.
Current conditions present a favorable opportunity for compliance: VAT registration costs remain relatively low in the Middle East, with efficient processing times. Sellers yet to register are advised to act promptly to safeguard uninterrupted operations.