So let me get this straight – amazon created a child firms in EVERY European Country, to be in the middle of business purchases, and avoid these purchases to be 0% VAT value, so their fee would be bigger?

As a lot of us do, I sometimes make purchases with our busness account, and if the seller is in another country – by the European Union VAT laws – the vat rate for such deals has to be 0% (if valid VAT number).

So if you sell to non-business private citizen, then lets say with VAT your price is 120€ and amazon will take from it 18€ (15% fee)

But if you sell to a business company that has valid VAT, then it should be 100€ deal price (120-VAT) and amazon gets 15€ (15% fee).

But this applies only if its an over-border purchase within EU.

So what amazon did? They created an entity in EACH OF EU COUNTRIES, and applied buyers automatically to service called “ease up your accounting with Amazon, so all your purchases come under one seller and is easier for accounting purposes”.

That means, if you didnt unsubscribe for such “service”, you buy through them every time. Lets say Seller is in Germany and buyer is in Finland. The buyer will actually buy from “Amazon Finland” with VAT, because its domestic deal, then “Amazon Finland” will buy from “Amazon Germany” (0% VAT deal) and then “Amazon Germany” will buy from seller with VAT because again it would be domestic purchase. The german seller will see domestic transaction with VAT and amazon fees from amount with VAT. So instead of 15€ fees, he will pay 18€ fee.

Amazing!