How does the payment option works for the vat uk establishment
So amazon concluded that we have to pay VAT on all our sales from 2021 because they believe that we are not UK established for vat purpose even though we are(we submitted evidence for this, yet they reject it)
Now, they have got back to us with our 'vat liability' of over GBP20,000.
So what I want to know is, do I have payment option where I pay this back in installments as I do not have enough cash flow to pay this amount.
Can amazon allow us to keep selling and take some of the money every week/month until we pay it back fully.
How long does the payment plan last? 2 years? 6 months?
If any have experience on this, please shed some light.
Thanks.
How does the payment option works for the vat uk establishment
So amazon concluded that we have to pay VAT on all our sales from 2021 because they believe that we are not UK established for vat purpose even though we are(we submitted evidence for this, yet they reject it)
Now, they have got back to us with our 'vat liability' of over GBP20,000.
So what I want to know is, do I have payment option where I pay this back in installments as I do not have enough cash flow to pay this amount.
Can amazon allow us to keep selling and take some of the money every week/month until we pay it back fully.
How long does the payment plan last? 2 years? 6 months?
If any have experience on this, please shed some light.
Thanks.
22 replies
Seller_ZVAz3d5lZuGid
" they believe that we are not UK established for vat purpose even though we are".
Even if your account is registered in UK, if you do not actually live here, then that does not count as being established in UK, and if you are a non-UK resident and store your goods here for FBA then you do need to be VAT registered here.
Sorry cannot help with your payment plan query.
Seller_k2X0L9mVRT0pW
a few people in this position have asked for a payment plan but no one - to my knowledge- has ever reported being granted one.
Seller_RlZVPg3d6ZUGP
Why would you think of paying 20k if you dont need to?
Is your amazon account linked to your physical address or is your ltd registered to a virtual address?
Seller_0HwgQjBzrC6Qv
Because Amazon is forcing me to.
My account has been on hold for close to 3 months. The only response I received from my submission is from a robot and no one is helping.
What other choice do I have.
My account is linked to a physical address, same address on the document I have sent them.
Seller_RlZVPg3d6ZUGP
Did you go over 85k before April?
Have you sent invoices with your company name and amazon registered address on as the delivery address? Does that match what is on the details at companies house (assuming you are ltd)
Seller_ZVAz3d5lZuGid
"2. I do not recall me saying I am relocating outside of UK."
I think this must be the post that CherryTree is referring to, from a couple of years ago and asking about using a VPN: "I am relocating outside of the country I opened my account "
(if you're wondering how this was found, it is possible to see all posts and threads that sellers have posted on, by clicking on the seller's name in the forum).
Seller_KlbXZHzQGSDZv
Will make a "littleshop" of you yet jillyb excellent reply.
On the subject of the 20k something seems a bit out there if you turned over 90K apr to apr then that alone is 17 odd k from that year alone never mind 21-22 22-23
Seller_0HwgQjBzrC6Qv
I did go over 90K before April.
I have sent invoices that has my name(I am the director of my company) on it with amazon registered address on the delivery address.
I also sent invoice with my company name on it.
Yes the address matches the details on the companies house.
Seller_0HwgQjBzrC6Qv
Yes I was outside the UK back then and I opened my account outside the UK. I have relocated and live in the UK since then.
Seller_MT8rt0A2OpbCx
That seemed to be on the US forum 2 years ago. @Seller_0HwgQjBzrC6Qv may have moved to, rather than from, the U.K. then. The original company Enruut Ltd was established in 2020, dissolved in 2022 and the current company Thriived Ltd established in 2021. Although Thriived Ltd is shown in the seller info, I think Enruut was the store name until recently and may have caused the problem, but now changed to Thriived. The Companies House address and the seller's address on Amazon doesn't seem to be a virtual address.
If the OP accepts they owe VAT to Amazon, then Amazon may deduct and pay VAT on all future sales, as if a non UK establishment. If they become VAT registered, as they are now over the threshold, they may end up paying double VAT. Quite a serious dilemma, I hope a mod can help sort this one out.
There does seem to be big problem with this non U.K. VAT thing, catching out some who evade paying their fair share of VAT, plus some who don't have their evidence accepted, even though they may be above board, but using a virtual address. Amazon don't seem to be providing adequate means to resolve these issues, either way.
Seller_RlZVPg3d6ZUGP
So did you do FBA when you were outside the UK?
Also, the limit was 85k prior to april so you wouldve needed to registered then aside from Amazons request
Seller_0HwgQjBzrC6Qv
Yes I was selling in the US store before I moved to the UK.
I know I should have registered for VAT way earlier but as soon as I realized I am about 85K threshold, I registered for VAT and HMRC said it will take 40 days to get back with VAT number.
Amazon has given me 30 days since 27th June to remove my inventories otherwise, they will dispose of it.
I have tried to remove my FBA inventories but they wouldn't allow me.
All this is just a hell hole.
Seller_XqtiYi1i55VGM
Should it rather be a physical address?
Winston_Amazon
Hello @Seller_0HwgQjBzrC6Qv,
Can you explain your current situation that you are having now? Are you still in the process of resolving this?
