VAT Evasion: Competitor Not Collecting VAT on Sales Despite Being VAT Registered
Hi fellow sellers,
I hope everyone is doing well,
There’s a seller who is VAT registered (they have two officers, one in Luton and another in Pakistan) but has listed their items as "not subject to VAT" on Amazon, even though these items are not zero-rated. This means they are undercutting the competition by not including VAT in their prices and probably not paying HMRC dues, which gives them an unfair advantage.
To investigate, I made a test purchase from them and specifically asked for a VAT invoice. Initially, they sent a non-VAT invoice. After I pointed out that this was incorrect, they then provided a VAT invoice. This suggests they are aware of their obligations but are deliberately trying to avoid charging VAT unless specifically challenged.
This practice is very concerning as it seems like a way to undercut competition by avoiding VAT, I’m in doubt whether or not it’s worth reporting this to Amazon as my previous violation complaint was completely ignored
Has anyone come across similar situation? If so how did you deal with it?
Best regards
VAT Evasion: Competitor Not Collecting VAT on Sales Despite Being VAT Registered
Hi fellow sellers,
I hope everyone is doing well,
There’s a seller who is VAT registered (they have two officers, one in Luton and another in Pakistan) but has listed their items as "not subject to VAT" on Amazon, even though these items are not zero-rated. This means they are undercutting the competition by not including VAT in their prices and probably not paying HMRC dues, which gives them an unfair advantage.
To investigate, I made a test purchase from them and specifically asked for a VAT invoice. Initially, they sent a non-VAT invoice. After I pointed out that this was incorrect, they then provided a VAT invoice. This suggests they are aware of their obligations but are deliberately trying to avoid charging VAT unless specifically challenged.
This practice is very concerning as it seems like a way to undercut competition by avoiding VAT, I’m in doubt whether or not it’s worth reporting this to Amazon as my previous violation complaint was completely ignored
Has anyone come across similar situation? If so how did you deal with it?
Best regards
5 replies
Seller_d8YGbIjNqwFxn
You don't know for certain that they are not collecting VAT and passing it onto HMRC.
They may just have made a mistake with the VAT invoice.
I don't think Amazon will do anything about this as a result of you complaining. If you are that concerned you can contact HMRC and report to them.
