Amazon charging VAT even though i am vat exempt
i told them i am under the threshold of £85000 but they are still charging me tax and i told them about this but they keep on saying show us your incorporation letter
Amazon charging VAT even though i am vat exempt
i told them i am under the threshold of £85000 but they are still charging me tax and i told them about this but they keep on saying show us your incorporation letter
8 replies
Seller_ZJhFeE3tNKzfh
Do you meet the rules around being established in the UK? Or are you outside the UK?
Seller_LVJaidBR9PT5Z
You need to get a VAT Exemption letter from hmrc then show amazon just telling them you are under the threshold is not proof. They will then refund your VAT and stop charging you.
Seller_AxxkoZPRIVXjA
Hi
Need to provide the UTR letter from HMRC
Seller_AVteysPitiEJq
I'm going through the same thing. I gave them my tax calculation statement that the HMRC said was ok to prove I'm a sole trader, as it says 'income from self employment' plus my UTR number is on it plus I sent them a letter from HMRC confirming I have been re-registered from VAT.
First it was flately rejected but now the case is in one of those endless loops where 'they've reached out to the relevant team'.
Seller_Fg2fqaWOnEtha
Things are so complicated....
I found this discussion online in the HRMC forum:
"I sell on eBay, they need from HMRC a letter to show that i am VAT exempt. I have emailed and they are saying they cant provide a letter to say that i am exempt, this is something they don't do. The reason i am exempt, is that i haven't gone over the £85,000, as i only registered as a sole trader last month, going nowhere near the £85,000.
eBay are demanding this letter or they will shut my account down, how do i get this letter, if HRMC are saying this is something they don't provide? Please can someone help me get this letter!"
Someone answers:
"Are you a UK based business or are you non-resident/based overseas?
HMRC do not issue VAT exemption letters, you need to discuss with eBay as to why they are asking for something that HMRC do not do.
eBay regularly ask merchants for this exemption letter, there is no exemption letter so go back to eBay and ask them to clarify what they mean."
And then someone from HMRC adds:
"Hello
We would not issue a letter."
Seller_R4Mzmn5IEQCof
My understanding is, you will pay Amazon VAT, however on your sales you also get to keep your VAT.
You charge £10 for an order, you get £10, pay Amazon £1.5+£.30 VAT -£2FBA + £0.4 VAT = 5.8
I charge £10, I get 8.33, I pay Amazon £1.5 + £0 VAT -£2 FBA + £0.0 VAT = £4.83
You are £0.97 up on this 1 sale. I however also don't pay VAT on my phone and broadband, nor my rent and other bits, you do, which is better when under the threshold an accountant can say (normally not registering)
So you are not VAT exempt , you are under the threshold of having to register for VAT. It all just automatically takes care of itself, you don't do a return every Q to do all the sums to balance it all out and pay/claim any ballance..
If you are non domiciled then I don't know but you can't then use FBA and must use FBM and other rules that I don't know.
Seller_hOZNPw7G8FIjl
I think you maybe confusing 2 different things - charging VAT to your buyers and paying VAT on selling fees.
Being under the £85k threshold means you do not need to be VAT registered so do not add VAT to the selling price of your items.
However you have still to pay VAT on Amazon selling fees - you are not exempt from those and the £85k threshold is irrelevant in this regard
