Marketplace Facilitation Tax
Dear Sellers,
I am a UK resident and my company is registered in the UK. My orders are shipped from a US warehouse to UK customers. I am not VAT registered in the UK. Why is Amazon collecting marketplace facilitation VAT from my orders?
Thank you
Marketplace Facilitation Tax
Dear Sellers,
I am a UK resident and my company is registered in the UK. My orders are shipped from a US warehouse to UK customers. I am not VAT registered in the UK. Why is Amazon collecting marketplace facilitation VAT from my orders?
Thank you
Seller_7VbclcPFFRTnc
What are Marketplace Facilitator regulations and how can these affect my business?
Countries are implementing Marketplace Facilitator regulations which mean, under certain conditions, Amazon is liable to collect and remit VAT from customers in respect of your marketplace transactions. One of the elements needed in this respect is confirmation of your business address. It is therefore important to keep your business address up-to-date.
What happens if I provided a default ship-from address which is not my actual ship-from address?
When Amazon calculates taxes for your marketplace transactions, the total price including VAT is displayed to the customer at check out (based on your VAT inclusive list price). One of the factors that impacts this tax calculation is the default ship-from address. If your actual ship-from address is in a different country, this may lead to VAT calculation errors. It is therefore important to keep your ship-from address up-to-date.
You may also want to check any US tax obligations you may have
12 replies
Seller_7VbclcPFFRTnc
Because your stock is shipped from US to UK customers
As soon as they see your ship from address is non UK, it triggers MFT
Seller_k7ZsZQOObOUcs
Many thanks for your answer. As a UK resident, I thought I should be VAT exempt. Is that true?
Seller_7VbclcPFFRTnc
Yes - if your stock were here in the UK though and you were shipping directly to UK customers (as well as being under £85k threshold)
Seller_k7ZsZQOObOUcs
Many thanks. Products are sent via DDP therefore I pay double tax. Do you know if there is any way to resolve this?
Seller_7VbclcPFFRTnc
You’d need to speak with your accountant
Seller_GwVKC064o58W9
Yes but your turnover should be under 85.000 GBP annually. If it’s more than 85k you must be vat registered.
Seller_k7ZsZQOObOUcs
Yes I am below 85.000 GBP. My company is here in the UK and I am UK resident. Just products are shipped from US. I looked but there is no info about my case.
Many thanks for your help
Seller_7VbclcPFFRTnc
Have you enquired with your accountant the benefits of just importing the stock to your UK establishment and shipping from there - or do you not have the storage ?
Seller_k7ZsZQOObOUcs
Yes, however since I am mostly focusing on US made products, it is easier to use DDP and ship from US to our customers. I will get in touch with my accountant and HMRC to get more information.
Seller_7VbclcPFFRTnc
What are Marketplace Facilitator regulations and how can these affect my business?
Countries are implementing Marketplace Facilitator regulations which mean, under certain conditions, Amazon is liable to collect and remit VAT from customers in respect of your marketplace transactions. One of the elements needed in this respect is confirmation of your business address. It is therefore important to keep your business address up-to-date.
What happens if I provided a default ship-from address which is not my actual ship-from address?
When Amazon calculates taxes for your marketplace transactions, the total price including VAT is displayed to the customer at check out (based on your VAT inclusive list price). One of the factors that impacts this tax calculation is the default ship-from address. If your actual ship-from address is in a different country, this may lead to VAT calculation errors. It is therefore important to keep your ship-from address up-to-date.
You may also want to check any US tax obligations you may have
Seller_qZO3ZCjoBXEeL
BTW - here is the specific HMRC guidance:
