What the annual VAT return is
The annual VAT return is the key moment when your accountant takes a precise snapshot of all your VAT transactions from the previous year. For an e-commerce seller, it’s the glue between the monthly/quarterly settlements and the world of marketplace sales you live in every day.
In Italy, the typical deadline for the annual VAT return is 30 April of the year following the reference year:
- 2024 VAT return → by 30 April 2025;
- 2025 VAT return → by 30 April 2026.
It’s true that since 2019 “the VAT return has been simplified”, but for e-commerce sellers it remains the place where every loose end left open during the year gets tied up.
If you want to understand how the OSS scheme fits into the VAT picture, first read: VAT OSS: what it is and how it works for Amazon sellers.
What must be included in the annual VAT return
The VAT form (now integrated into the Modello Redditi / annual VAT return) summarises:
- Output transactions: all sales with VAT: B2B electronic invoices, domestic B2C sales and, very often, a portion your accountant derives from your Amazon/eBay/Shopify tables.
- Input transactions: purchases of goods, services, Amazon fees, cloud, ads, etc. with input VAT or reverse charge.
- Intra-community transactions: B2B sales and purchases between EU countries, often under the reverse charge mechanism.
- Non-EU purchases: imports with import VAT or via IOSS.
- Exempt or non-taxable transactions: exports, supply chains into the EU with FBA stock, some capital goods disposals.
- Input/output VAT: the final balance between all input VAT (e.g. purchases) and output VAT (e.g. sales) that becomes your liability to, or credit from, the tax authority.
What shouldn’t be included: the “eBay paper trail”
A recurring mistake is thinking the annual VAT return needs to “stitch together” market-by-market data without any filtering. In reality, the return already operates at a higher level of abstraction, while:
- Amazon/eBay/Shopify reports should be used to feed the return, not as a substitute for it;
- PayPal/Stripe payments should only be a control signal, not the main accounting basis.
For a multichannel seller, the correct flow is:
- raw marketplace data (CSV, Amazon API / LWA);
- aggregated and classified via VAT software (e.g. VATManager);
- a structured report for your accountant;
- the annual VAT return prepared by your accountant;
- a final check by the seller on the headline figures (revenue, input/output VAT, B2C breakdown by country).
Documents needed for the e-commerce seller
Before handing everything to your accountant, you need to gather and organise:
1. Annual VAT ledgers
These are usually generated by your accounting software or your accountant, but must include:
- sales ledger: all electronic invoices and any un-invoiced output transactions (e.g. receipts, where relevant);
- purchase ledger: all invoices received with VAT, including reverse charge and non-EU invoices;
- a general VAT ledger with a monthly summary.
2. Amazon, eBay, Shopify reports
For the reference year you need:
- all Amazon VAT Transaction Reports, organised by quarter (downloadable from Seller Central → Reports → VAT);
- eBay sales exports for every active store/marketplace;
- Shopify financial reports showing gross revenue, refunds and taxes applied by country;
- fee statements for each platform (Amazon referral fee, FBA fee, eBay fee) — needed for reverse charge on fees.
3. Input invoices and reverse charge
An area often overlooked by e-commerce sellers:
- Marketplace fees (Amazon, eBay, Meta Ads, Google Ads): if the supplier is EU or non-EU and you have a standard-regime VAT number, reverse charge applies;
- SaaS and cloud services (Shopify, VAT software, hosting): same mechanism;
- Intra-community purchases of goods: if you bought stock from an EU supplier, it must be reported with self-assessed VAT.
4. Annual OSS/IOSS summary
If you use the OSS scheme, your accountant needs the annual summary of B2C sales by EU country — not just the quarterly totals already declared, but a coherent overview that will be needed for reconciliation in case of a tax audit. VATManager generates this report directly from the OSS section.
Common mistakes in e-commerce sellers’ VAT returns
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Not reconciling VAT Transaction Reports with issued invoices | Discrepancies your accountant can’t explain | Use VAT software that aggregates everything into a single report |
| Forgetting reverse charge on marketplace fees | Unrecovered input VAT or penalties for missed self-assessment | Check every foreign invoice received during the year |
| Confusing OSS sales with domestic sales | Double declaration or omission in the annual return | Clearly separate EU B2C flows from domestic ones |
| Not including FBA stock transfers as relevant transactions | Potential challenges over undeclared intra-community movements | Track FBA movements by country using the VAT Transaction Report |
| Handing unaggregated data to your accountant | Wasted time, risk of errors when filing | Always deliver a pre-processed report, not raw CSVs |
How to prepare in advance with VATManager
The most effective way to reach the annual VAT return without stress is to not wait until January. During the year:
- Import the VAT Transaction Reports every quarter as soon as they’re available on Seller Central;
- Review the anomalies flagged by the system (0% rates on physical goods, transactions with no destination country);
- Export the quarterly OSS report and keep a copy after every filing;
- Generate the annual summary at year-end to hand to your accountant — a single file with sales by country, transaction type and VAT applied.
This way, the annual VAT return becomes a formality instead of an emergency.
📎 Learn more: How to prepare your accountant for the OSS return — Amazon VAT Transaction Report: how to read it without mistakes — Data retention and GDPR for tax reports
Frequently asked questions
What is the annual VAT return and when must it be filed? It’s the summary of all VAT transactions from the previous year. The ordinary deadline in Italy is 30 April of the following year: the 2025 VAT return must be filed by 30 April 2026.
Which Amazon reports are needed for the annual VAT return? All quarterly VAT Transaction Reports, the fees export for calculating reverse charge, and the per-country sales summary for reconciling with the OSS return.
Does an Amazon seller need to file the annual VAT return even with OSS active? Yes. OSS covers the quarterly return for EU B2C sales. The Italian annual VAT return is separate and mandatory for anyone with a standard-regime VAT number, regardless of whether they use the OSS scheme.