Advertising + VAT exempt

#1

Hello
I’m a new UK seller and as I just started the business I am VAT exempt.
I noticed that on advertising invoices I am charged tax and emailed them to let them know I’m VAT exempt.

I got this reply:
Kindly know that in order to get VAT exemptions you need to register for VAT and add the VAT ID in your seller central account.
In this case, as per our records your account has no VAT ID added which is why the tax is being deducted.
If no VAT ID is provided on your account, the Tax charges will continue.

Can anyone guide me about this?
What is VAT ID and how should I have one if I’m VAT exempt?

Thank you

#2

You pay vat on advertising fees as amazon uk are billing you
You can only apply for exemption from seller fees billed from outside the uk

#3

I applied for exemption on seller central as a UK seller selling inside UK and they set me as VAT exempt.

Regarding Advertising: I don’t get why should I pay tax on advertising. The advertising team can’t approve my VAT exemption without a VAT ID??
What am I missing here?

#4

Same reason why you pay vat on other UK supplies
It’s only non UK services that are exempt

#5

The situation currently with Amazon and exemption from VAT is a little baffling. Regardless, the difference is likely that whilst most Amazon fees are VAT’d from the EU, advertising is from the UK.

#6

Ahhhh, got it. Thank you.

closed #7

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