Non UK established and not VAT registered
Guys, is there anybody out there like me to help me with any comments? UK-based company but not UK established for VAT as I live outside the UK. I store goods in 3PL. I am not VAT registered as I have been always below the threshold of 85K. Amazon has frozen my payments and they are stating that they are calculating the VAT owed from 2021 Jan. I have never been VAT registered and have paid VAT on my goods and services without claiming them as I have not been VAT registered so how amazon want to calculate my VAT owned from Jan 2021, is this an April 1st joke?
appreciate any comments
Non UK established and not VAT registered
Guys, is there anybody out there like me to help me with any comments? UK-based company but not UK established for VAT as I live outside the UK. I store goods in 3PL. I am not VAT registered as I have been always below the threshold of 85K. Amazon has frozen my payments and they are stating that they are calculating the VAT owed from 2021 Jan. I have never been VAT registered and have paid VAT on my goods and services without claiming them as I have not been VAT registered so how amazon want to calculate my VAT owned from Jan 2021, is this an April 1st joke?
appreciate any comments
11 replies
Seller_ZJhFeE3tNKzfh
Seller_19xPhE8YgkmxW
Hello muscle_nutr,
As I understand it, if you are not Resident in the UK and are selling goods to UK residents you should have been charging VAT regardless of your turnover...
This is HMRC's definition for Residency -
"What established means
Individual
You are established in the UK when you have a residence or are usually resident in the UK. For example, you live in the UK for at least 183 days a year.
Partnerships and corporations
A company is established in the UK if it is incorporated at Companies House.
A limited partnership or a limited liability partnership is established in the UK if it is registered at Companies House.
If your business is not incorporated or registered in the UK, you can be established in the UK if you have a permanent place in the UK where you carry out business activities.
Evidence of establishment
You may be asked to provide evidence of establishment in the UK.
The evidence could include:
proof of residence or usual residence in the UK
a certificate of incorporation issued by Companies House
details of business activities and where they are carried out
details of where staff are employed and the work that they carry out
physical premises owned or leased by the business
details of contracts, orders or invoices held or issued by the business
proof that the business has its own accounts"
Hope that helps
Brian
Seller_ZVAz3d5lZuGid
Do you store your goods in UK ?
My understanding is that if you are not a UK resident, even if your business is registered here then the 85K threshiold does not apply, it only is relevant for UK residents (though I will stand corrected).
Seller_k2X0L9mVRT0pW
iF you are non UK resident and store your goods in UK then Amazon are correct - you should have been VAT registered from the start. No threshold applies then.
Seller_Q2lnqYOdbp17u
We are UK based company with UK VAT registered (but I am not a UK Resident) - Our funds that been on hold for 2 months. Is there any progress on your end ?