VAT on sales
Hello Everyone.
I just wanted to find out the process of not paying VAT on my sales, I am still under the threshold of £85k and I am not VAT registered yet.
Every time I do calculations that will include Amazon fees, I am still paying other costs which I am assuming it is VAT on sales.
Any idea on how to approach Seller support on this issue?
Any help would be appreciated. Thank you.
N:B I have my UTR number/ I receive Amazon Tax/VAT invoices every month.
VAT on sales
Hello Everyone.
I just wanted to find out the process of not paying VAT on my sales, I am still under the threshold of £85k and I am not VAT registered yet.
Every time I do calculations that will include Amazon fees, I am still paying other costs which I am assuming it is VAT on sales.
Any idea on how to approach Seller support on this issue?
Any help would be appreciated. Thank you.
N:B I have my UTR number/ I receive Amazon Tax/VAT invoices every month.
11 replies
Seller_76AUwmqvSyRIM
Contact Amazon Seller Support and declare your VAT exemption. They will (eventually) stop charging you VAT on seller fees and "should" refund what has already been paid.
You don't pay vat on sales as you are not vat registered. If you advertise, you will continue to pay VAT as this is charged from UK.
I am assuming you live in the UK.
Seller_QuM1AZgzfU9x4
Ensure you are aware of the accounting implications of getting the VAT stopped before doing so. It is not beneficial for every business.
Seller_LVJaidBR9PT5Z
Hello, you need a VAT exemption letter from HMRC then you can contact amazon declaring VAT exemption and they will refund previous fees paid and stop charging you, this process in some instances can take months.
Seller_tRuvBEHDedp4q
You do not pay VAT on your sales if you are not VAT registered.
However, Amazon MAY be charging you VAT on their seller fees - and as others have said you can get this stopped.
But there is a caveat - Amazon now have a legal duty to collect and remit VAT for sales on their website for non UK sellers. A few months ago you should have had to submit documents proving you are a UK established business. If this has not happened, then Amazon will collect the VAT owed.
The EU has a similar policy - so if you sell on any of the EU sites then you will find Amazon collecting the VAT owed. This will happen regardless of your VAT status in the UK.
Seller_AJxxLujbGDqaW
If you are not registered for VAT then I assume you cannot claim your VAT on purchases either?
If you are a business and not a private seller you are much better registering for VAT anyway.
Seller_76AUwmqvSyRIM
That's not quite true. Financially, you are not better off until you reach or are close to the threshold (unless you sell zero-rated products). But you might be better off in other ways such as selling to VAT-reg businesses which may pass you buy if you are not registered.
I chose to register from day 1 all those years ago but that was my choice.
