Jersey and Channel Islands Orders
Jersey and Channel Islands Orders
Am I correct in saying, as Amazon want to deduct VAT from an item that is ZERO VAT, the only way around this issue is to remove The Channel Islands from Shipping Settings, so all those Buyers lose out?
This would apply to Sellers that are not VAT registered and Sellers that sell 0% VAT items (eg Books)
Eg: £300 item, they deduct £50 even though no VAT to deduct.
SS as usual are not helpful
Jersey and Channel Islands Orders
Jersey and Channel Islands Orders
Am I correct in saying, as Amazon want to deduct VAT from an item that is ZERO VAT, the only way around this issue is to remove The Channel Islands from Shipping Settings, so all those Buyers lose out?
This would apply to Sellers that are not VAT registered and Sellers that sell 0% VAT items (eg Books)
Eg: £300 item, they deduct £50 even though no VAT to deduct.
SS as usual are not helpful
9 replies
Seller_FQHkqHJI5SqTh
Amazon is the only site I sell through that does this, all the others handle this correctly for zero rated items; just adding the local sales tax on to the price.
It's the same with selling in to the EU through Amazon, so no longer sell to the EU through Amazon.
Seller_tHDZMh56pq7gX
I have the same issue as I am not VAT registered.
The only option I have to exclude the channel islands is the below category in my shipping settings
Scotland(Outer Hebrides, Inverness, Kirkwall, Shetland Islands), Northern Ireland, Channel Islands, Isle of Man
I do not want to remove the other UK areas, but have no other option in my settings.
If you use RM, it doesn't cost any extra to ship to any of these areas.
To alleviate this (to a certain degree), I have added a £2 postage surcharge to these areas (most of my items are around £15-£30 retail). What this does mean is that the UK areas (other than the Channel Islands) are paying for this inconsistency in the shipping settings.
Less than 1% of my orders are to these areas and even less to the CI, but I will make more on items shipped to these areas to offset the unjustified VAT deduction losses on the Channel Islands orders. It's not right, but you have to consider workarounds when selling here.
Seller_IjUdXgfytlivr
I have had a case open since April last year about just this (still running).
When I speak to the Tax Escalation Team, they tell me there is an error in their system, which they will escalate, then they don’t.
I am trying to get this up to the Executive team to get this looked at, but they are all being just as helpful as usual.
A few years back they had the same problem with the Reimbursement system. They started taking 20% off as ‘applicable VAT’, even for store not registered for VAT (no ‘applicable’ VAT). The only way to get that sorted was to get up through Leadership – Senior Leadership – Executive Team then finally Amazon Legal. The Legal team confirmed there was a programming error and got it fixed. They had to reprogramme the system so it could distinguish between VAT registered and Non VAT registered sellers.
If there are any admins reading this, you have a very serious error in the Marketplace Fulfilment System. You are not just removing 20% off orders for no reason, but when you then add on the local GST tax for Jersey, it is being applied at the wrong amount. You are only applying the 5% GST to 80% of the order value, when it needs to be applied to the full 100% of the sale value. That is not just a bad mistake, it is ILLEGAL!
Any other sellers who want to help get this flagged up to the Executive team, please feel free to lobby as much as you can (that is the only way to get things done nowadays).
Seller_IjUdXgfytlivr
And the kicker to all this is, you can't turn off Jersey as a region for FBA, so there is no way to avoid this happening.
