Installment plan for VAT repayment. Is amazon allowing?
Hi
this is related to recent UK VAt issues where amazon asking for proof of uk establishment and holding funds.
Did anyone tried convincing amazon for installment plan for VAT repayment? is amazon agreeing on it or giving this option or just trying to deduct VAT amount all at once from your funds?
Installment plan for VAT repayment. Is amazon allowing?
Hi
this is related to recent UK VAt issues where amazon asking for proof of uk establishment and holding funds.
Did anyone tried convincing amazon for installment plan for VAT repayment? is amazon agreeing on it or giving this option or just trying to deduct VAT amount all at once from your funds?
16 replies
Seller_esvgLzKXw2YAl
Why on earth should they?
If you should have been paying the vat, then PAY it.
You have been getting away with it up to now.
everybody else has to pay it. Why are you any different?
If it's an error on Amazon's part, then there is no liability. So it's moot.
Seller_FOpmcCuAVeZxm
The question here is 95% of sellers do not owe VAt as they have either already paid it to HMRC or are below the threshold and do not have to pay VAT.
Amazon have negligently or more likely incompetently forgot or failed or ignored the legislation since 2021 and now want to confidcate sellers money so that they can try to cover up their bothch job with HMRC.
HMRC by the way have told me that my VAT is uptodate so they have not asked Amazon to pay anything so they do not understand why they are doing it. THey said for Amazon to try to pay it again so that the seller has to ask for a refund is stupid and unecessaryt and wil also create lots of work for nothing. The VAT is already paid or simply is not due because of the threshold.
But heyt when did Amazon have any common sense.
Meanwhile I have out all my stores on holiday so they cannot keep confiscating any more money.
Seller_RNcqKX0eok7NI
If you trade i the UK and are making sales and profit from these sales then you will have to pay VAT here in the UK - all the UK sellers have to pay VAT or equivalent on any sales we make outside of the UK so we are not being treated any differently - Amazon offer VAT services for selling over seas which they charge you for to make sure its correct - this is your liability so it has to be paid - if you have not reached thresholds you can challenge this but if you have been avoiding it you risk your account and being fined in the countries you sell into - this is always your responsibility and always has been
Seller_Mwk0KtLuKEYYP
Hello,
we are in the same situation for the last 5 months. We received a payment plan from Amazon just a week ago, but we cannot pay it firstly because Amazon has not paid us for 5 months, and secondly, why should we pay Amazon if we have been paying VAT since 2018.
It makes no sense to pay now in order to get VAT back from HMRC later.
Seller_3OYcS5tDpFVYN
I don't think you understand the tax rules.
If you are uk based, you will pay VAT to HMRC from the money disbursed to you.
You collect tax on behalf of the UK govt, it's not a deduction from your income. its Value added tax.
And tax has nothing to do with Amazon, for payment agreements, you have to do this with HMRC, but it is difficult to get them to agree to the payment plan.
However, I have a feeling you are not based in the uk? if this is the case, I would recommend consulting with an accountant.
