Amzon is Now Charging 20 percent TAX on Amzon fees, is everyone affected ?
Hi
Noticed, Amazon is Now charging 20 percent Tax on Amazon fees ( referral fees + fulfilment fees) from 1st of August, Even if Already got VAT exempted status. Do all sellers Noticed this change.
If this is the case small sellers will face the challenge more and No doubt, customers may find more expensive products in coming days, isn't it.
Amzon is Now Charging 20 percent TAX on Amzon fees, is everyone affected ?
Hi
Noticed, Amazon is Now charging 20 percent Tax on Amazon fees ( referral fees + fulfilment fees) from 1st of August, Even if Already got VAT exempted status. Do all sellers Noticed this change.
If this is the case small sellers will face the challenge more and No doubt, customers may find more expensive products in coming days, isn't it.
56 replies
Seller_soBD2wwhsVOww
Was anounced months ago,started increasing my prices slowly from first announcement & now have the 20% increase in fees more than covered with no loss of sales & no drop in margin.
Seller_d8YGbIjNqwFxn
I doubt many products will become more expensive.
All the big sellers are VAT registered and will be able to claim the VAT on fees back.
It will impact smaller sellers though and the choice is to raise prices, absorb the additional cost or become VAT registered (although this might still mean raising prices)
Seller_GJP3Cbt07uSu0
As many have already pointed out - this playing field has now been leveled and the tax exemption status has been removed from 1st August. It has been widely reported. Many have not spotted and many never will. Sadly many sellers rarely check that they are actually making money.
Seller_raHZbxvpfgJs3
Yes this has been discussed and warned for months now.
Seller_raHZbxvpfgJs3
The prices wont go up because the majority of larger sellers are VAT registered. Are you based in the UK?
Seller_WMvjCbMGpzh7I
As a small seller under the 90K VAT threshold we've always been charged VAT on seller fees therefore no change for us.
Seller_MT8rt0A2OpbCx
There was a loophole, where if you proved you were a business, even if not VAT registered, Amazon could reverse charge, i.e. not charge, VAT, as the invoice had a Luxembourg VAT number. That loophole has been closed this month.
Seller_raHZbxvpfgJs3
You should claim back all the VAT you've ever paid on fees up until August 1st 2024. Its a very simple process, start a ticket. I received close to £13k.
Seller_qn6rbWRTgPiGo
Yes, you should be able to claim back all of the VAT you have paid on Amazon fees. We done this when we first started, and got around two or three months of VAT refunded to us. Obviously yours will be a lot longer but the same principle applies. Contact seller support about this and you should be able to follow the steps.
Seller_WMvjCbMGpzh7I
Thanks for the info I will do this today. Fingers crossed.
Seller_40ozsHlGqPuEL
You can apply for VAT if you wish? Even if you are below the level. Just depends on how much the maths works for yourself.
Seller_IC5dxZRZpcM4T
reverse charge mechanism also meant that you should add the cost of the reverse charged purchases to your sales thus increasing the sales for the purposes of establishing is you were below or above the threshold for registering for VAT. A loophole that if correctly accounted for would mean a lot of sellers should be vat registered, but due to the lack of understanding about the reverse charge mechanism in sure the small traders didnt account for it correctly!
Seller_qjPjvwmMvJ7tV
Good days are ahead.
level playing field around the corner.
Seller_3F0sYmXUr0VMi
Welcome to the world of business. It should have always been so.
Seller_0msMReDTskp1Y
I notice the "tax document library" is unavailable again this morning. I hope they're going to put some resources into making this a bit less flakey.
Seller_MlegLieBNdcLW
Does this effect overseas sellers selling in the UK ie factories? They are the ones who dominate most of the market and sell the very low prices.
