Can you return VAT amount to customer?


#1

This was a message I received from a customer in Spain.

“Dear Sirs,
Please confirm if you can return the VAT, as we have a VAT number and it should´t be charged”

Is this something I can do through seller central? Or should I say no?


#2

Are you VAT registered? If not then you haven’t changed VAT so it cannot be refunded.

If you are VAT registered and the buyer is also VAT registered (do not go on their say so, ask for their VAT number and check) then you could have zero rated the supply under the reverse charge scheme. You could refund this via Seller Central but you would also need to make sure in your accounts you have marked this transaction as a reverse charge supply or else you will be paying the tax man the extra in VAT.

The customer can also reclaim the VAT themselves in the usual method but I think they can only do this when there is a certain amount to reclaim (I cant remember the exact amount but I think it something like £50).

Personally, I think I would just say to the customer that they needed to have asked for a reverse charge supply before paying for the transaction and as it has now been paid for all you can do is supply a VAT invoice so they can do their own claim.


#3

Say No.
It’s not your problem. Either they need to be registered with Amazon B2B, otherwise they will have to reclaim themselves, all you need to do (if vat registered) is provide a Vat invoice.


#4

Say no. The price they paid is inclusive of any applicable VAT.

If you’re VAT registered and they give you their VAT number (that you can validate through VIES) you could issue an invoice with zero VAT due to reverse charge. They’d be no better off though.