VAT and platform taxation

This guide helps you find out how your business is taxed across our markets. It details how the information you submit determines your tax treatment and, consequently, how our automated systems calculate your final payouts.

You’ll learn about:

• How we decide your tax scenario.

• Your VAT duties in the EU and non-EU markets.

• The steps you need to take to stay compliant.

Your tax treatment is determined by two factors: 

1. Where your company is based 

2. Where you ship from

Whether you’re established in a specific country is determined by the country of legal establishment (incorporation) of the legal entity that has the contract with Zalando.

• Your responsibility: You’re the primary party responsible for VAT. You must collect, report and pay local VAT in every EU market where you sell.

• Your next steps: Use the One Stop Shop (OSS) to simplify this. It lets you file one tax return in your home country for all cross-border EU sales.

• How it affects your payout: We pay you the gross amount (price plus VAT). You then pay the VAT to the authorities yourself.

• You must have a local VAT ID in any country where you are storing stock. You need this even if you use OSS.

• Your responsibility: If you ship EU sales from an EU warehouse, we’re the “deemed supplier”.

• The process: We take over the tax burden. We collect and remit the VAT to the authorities for you.

• Invoices: Don't issue B2C invoices to customers. We handle all customer-facing tax documents.

• How it affects your payout: You’ll receive the net amount. We take the VAT at the point of sale.

 On 1 January 2025, the Swiss VAT rules changed for all partners, regardless of where you’re based.

• Our role: We’re the deemed seller. We report and pay the 8.1% (standard) or 2.6% (reduced) Swiss VAT.

• Your role as importer:

  • Own fulfilment: You’re the Importer of Record. You clear customs and pay import VAT/duties. 

• ZFS: We manage the import process.

• Invoices: Your internal records should show a VAT-exempt B2B sale to us.

For items under NOK 3,000, you can use our VOEC registration. This helps you avoid complex customs for your customers.

• The benefit: Customers pay VAT at checkout. No import VAT or duties are charged at the border.

• Your action: You must send our VOEC number to your carrier digitally. If you don't, the customer will be double-charged upon delivery. This leads to high return rates and CXM penalties.

• Own VAT ID? If you have a Norwegian VAT ID, you can't use VOEC. You must manage all Norwegian taxes yourself.

The UK has strict “deemed supplier” rules that vary by where you’re based and the value of the parcel.

• Orders up to or equal £135: We’re the deemed supplier and remits the VAT.

• Orders over £135: You’re the Importer of Record. You must pay import VAT and duties.

• Non-UK partners with UK stock: If you ship from a warehouse inside the UK, we’re the deemed supplier for all B2C sales. The price doesn't matter.

Verify these three points in zDirect to keep your payouts accurate and compliant:

1. Warehouse accuracy: List every warehouse you ship from. Our tax system uses the “ship-from” country to decide the tax.

2. Proof of establishment: Upload your certificate of incorporation and VAT certificates. Without these, we might have to take tax at the full rate.

3. The “5th of the month” rule: Update any tax status changes, e.g. registering for OSS or getting a new VAT ID, in zDirect by the 5th day of the month prior before they take effect.

*Non-EU refers to CH and/or UK only

If you have questions, please contact our Partner Care team via our support form. Please select topic: Account support, and request type: Questions on VAT.