How to regaing VAT registration exemption - Help needed please :)
Hello guys :)
I would really appreciate help with the following issue:
Today I received an email from Amazon UK stating that Amazon has withdrawn my VAT registration exemption and I think this is due to being close to (but not there yet) to the £85000 threshold that allows VAT registration exemption and I would be ever so grateful if anyone could please help me to regain this exemption...
If my sales drop (as I expect them to do so soon) would I regain the exemption authomatically?...
If so how long do you guys think it would take?...
Also what should I do in the meantime regarding selling and the VAT?... Should I add it to my products?... Who would I pay it to considering I am not VAT registered or even have an accountant?...
If the exemption wouldn't be regained authomatically by sales dropping is there another way of regaining it?...
I never expected to reach the £85000 threshold and hence haven't given it much thought - I think Amazon are expecting me to reach it soon and are taking preventive action....
Any help would be very much appreciated :)
Thank you so much guys :)
Ripley :)
How to regaing VAT registration exemption - Help needed please :)
Hello guys :)
I would really appreciate help with the following issue:
Today I received an email from Amazon UK stating that Amazon has withdrawn my VAT registration exemption and I think this is due to being close to (but not there yet) to the £85000 threshold that allows VAT registration exemption and I would be ever so grateful if anyone could please help me to regain this exemption...
If my sales drop (as I expect them to do so soon) would I regain the exemption authomatically?...
If so how long do you guys think it would take?...
Also what should I do in the meantime regarding selling and the VAT?... Should I add it to my products?... Who would I pay it to considering I am not VAT registered or even have an accountant?...
If the exemption wouldn't be regained authomatically by sales dropping is there another way of regaining it?...
I never expected to reach the £85000 threshold and hence haven't given it much thought - I think Amazon are expecting me to reach it soon and are taking preventive action....
Any help would be very much appreciated :)
Thank you so much guys :)
Ripley :)
13 replies
Seller_IZqZFrwbu3zmw
You need to seek advice from an accountant asap. Once you are that close to the threshold, unless you are stopping trading immediately, you must register - so need to get advice from someone qualified, who can look at all your circumstances/set up of your business etc. You cannot charge vat without registration and you must register before, or as soon as you breach the threshold. Decisions to make, but don't ignore the situatiom, or amazon could take action against your ac and hmrc - not worth the risk.
Seller_sMKIKBk9V0IKF
Honestly, you need to talk to an accountant and preferably one who understands online marketplaces. I'd be more worried about HMRC implications than Amazon (although please be aware that Amazon will withhold funds if they think you owe HMRC money).
Have you calculated your turnover on a rolling 12 month basis. You need to know what your turnover is from 01/09/22 to 31/08/23. The threshold isn't based on financial or calender years. Also make sure you are using the value of sales in this period and not the value of the disbursements you have received.
If Amazon have removed your exemption status it would suggest they think you have already reached the threshold. I believe that if you have reached the threshold and need to register for VAT with HMRC, there are ways to deregister in the future however I've never done this and don't know the implications so again, please talk to an accountant.
Seller_ZVAz3d5lZuGid
Just to add to above 2 replies, which are good advice - you need to remember it is turnover, not profit that it is based on, so you may have already reached the threshold when you take into account fees etc.
Seller_d8YGbIjNqwFxn
All the advice above should be listened to and any information I give now should be verified with an accountant
If you are VAT exempt on Amazon then you have to remember that your threshold for VAT is based on turnover plus your Amazon Fees. This is as per HMRC guidance.
So if you are only just under the threshold sales wise you may be tipped over if you add on your fees.
Once you are over the threshold you are likely to have register for VAT.
As I said you need to have this all verified by an accountant.
Seller_ZQyopdiwkUHOZ
In addition to the other replies, VAT registration may take substantially longer to go through than you think. I know at times last year it was taking more than a couple of months.
Seller_Q967F9vAU7vHi
All that changes if you have the exemption withdrawn from Amazon is that you have to provide invoices for business customers (within 24 hours) and it doesn't have anything to do with registering for VAT if you are under the threshold.
