Amazon has withdrawn your VAT registration exemption declaration as you do not meet
Hi,
I was trading as sole trader until turnover 83k then i registered a limited company and transferred the seller account Sole trader to limited. Today i have received email Amazon has withdrawn your VAT registration exemption declaration. My company is just two weeks old, According to HMRC if you are moved from sole trader to limited before 85k, VAT threshold will be reset.
As my company is two weeks old and not done business of over 85k. but amazon shows 12 months turnover over 85k, including 83k when i was sole traders.
Do i need to VAT registered? please help.
Amazon has withdrawn your VAT registration exemption declaration as you do not meet
Hi,
I was trading as sole trader until turnover 83k then i registered a limited company and transferred the seller account Sole trader to limited. Today i have received email Amazon has withdrawn your VAT registration exemption declaration. My company is just two weeks old, According to HMRC if you are moved from sole trader to limited before 85k, VAT threshold will be reset.
As my company is two weeks old and not done business of over 85k. but amazon shows 12 months turnover over 85k, including 83k when i was sole traders.
Do i need to VAT registered? please help.
13 replies
Seller_RlZVPg3d6ZUGP
if you did £83k as a sole trader did you add on the VAT from the fees that youve saved by being exempted? could that have taken you over the £85k? If so, you should have been VAT registered as a sole trader before you changed
Also, it normally takes a while to change sole trader to ltd is your account fully verified and changed over?
Seller_reoHzCcrHZ6jW
Hi, It was total 83k sales before any fees. i have done 4k on limited company since i change, Total sales is 87k last 12 months.
Business and personal identification is verified, waiting for bank account to be verified.
Seller_RlZVPg3d6ZUGP
So if you claim VAT exemption you have to add the VAT part of your fees to your turnover calculation
Seller_ZVAz3d5lZuGid
Quote: It was total 83k sales
VAT is based on turnover, not sales profit, so as said, you have to add the VAT on fees into it.
Seller_reoHzCcrHZ6jW
this is the figure i am talking about, this is total product charges, amazon will take their fees after this. actual disbursements will always less then this figure
Seller_reoHzCcrHZ6jW
i do believe, i am below the threshold.
Seller_RlZVPg3d6ZUGP
So when you become VAT registered you reverse charge the VAT on fees on your VAT return,
When you are VAT exempted you add the VAT on the fees to your turnover
You need to go through it with an Amazon experienced accountant
Do you sell elsewhere too?
Seller_reoHzCcrHZ6jW
i am not taking any chance with amazon, i just have sent VAT registration application.
Seller_IrHP9fuQEsgwh
I am in the same position as you
I did sole trader £65K then switched to limited 3 months ago, just turned £85K this week and got that email
The only thing different I can see is the "automated receipt generation"
Not sure what i should be doing
Seller_UImKvM8RwScxb
Yes, you need to be VAT registered - the transfer of the Sole Trader into Ltd is a TOGC and you need to take your previous turnover into account. If you expect to go over the threshold then you needed to register for VAT. Lots of misinformation on these tiktok groups saying that the VAT turnover resets. If it did then everyone would just flip between sole trader to ltd and back.
