No can’t say I’ve noticed. My main Chinese competitors have FINALLY got VAT registered.

However, I was expecting a massive upturn in sales after the new VAT laws kicked in as loads of others had their accounts shut down. That hasn’t happened, if anything the Chinese sellers are now taking over big-time, so I can well believe what you say is true.

I guess all we can do is report them to Amazon, VATfraud.org and HMRC. The law says that if Amazon knows that a seller is committing VAT fraud and they do nothing then they are liable.

Are you sure they are shipping their goods from within the UK or using FBA, if they are shipping directly from China they do not need to be VAT registered.

My accountant inform me that UK sellers no need to register for VAT, If the turnover is less than £80000 per year. Is this right? Somebody please explain me,

For the Chinese sellers who have no vat number some are actually registered but have not yet added it to their account. Amazon are finally seeming to be enforcing this. If you see any report them via the report a violation option and also to HMRC at intelligence.riscig@hmrc.gsi.gov.uk
Thats the online compliance team email address. Also report the the friendly people at vatfraud.org

Amazon, eBay and also now Alibaba are signing a deal to data share with HMRC. This is because many of our Chinese friends have registered but are making zero or low VAT declarations. HMRC are wise to this now (thanks to vatfraud.org flagging this to them).

eBay is currently going through these accounts HMRC are saying are non-compliant and are removing thousands. Amazon are also doing it (but looks like at a slower rate). There is movement though. HMRC now have 171 full time staff working on this, have made 27,500 overseas sellers register for VAT, removed 1400 sellers under joint and several liability notices, and have 2100 active investigations.

I thought VAT registration was a requirement now for any overseas sellers storing product in UK Fulfilment centres which seems to be the case with below and a lot of forum comments on this. We now notice some previously listed Chinese sellers have changed to US Based companies listed as Sole Properietor but selling the same 1,000+ lines at the same prices through FBA which may be a work around they are using.

Even if you are not UK VAT Registered and are below the registration threshold, currently £85,000, if you are planning to send stock to Amazon FBA warehouses in Germany, Italy, Spain and/or France the EU VAT rules mean that you must register your business for VAT in each of the Countries you plan to send your stock to.

The HMRC Correspondence dated 27th March 2018 makes very interesting reading regarding this issue and is available here, most of the recomendations in this have an expected update of March 2018 we’re way past this.

I don’t understand why you would believe that there would be a surge of sales because some Chinese sellers need to be VAT registered.

I have many friends based in Hong Kong who sell on Amazon. Some have VAT registered, some do not need to be VAT registered.

Their main advantages are:

• lower labour cost
• lower storage cost
• lower material cost
• lower rent prices

Basically nearly everything to do with business cost a lot less in Hong Kong than in the UK. Therefore they can charge a much lower price. Whatsmore the time to send a small size parcel from Hong Kong to UK now takes 5 -7 days - much shorter than before. Being VAT registered won’t deter them at all.

So if you’re waiting for this surge in sales, well I would hold my breath.

Having a business in Hong Kong does have disadvantages. Their main disadvantage is they live in a state where they have no human rights and the government can do whatever they like to you - unless you have lots and lots of money and you can buy the officials. Also being a member of the party really helps.

There are some Chinese business’s that give the Chinese sellers a bad name.

E.G, LL TRADER who sell under other names mainly due to tax evasion, there is a web page forum just regarding this issue dedicated to these sellers that have obviously been abusing the system to make as much money as possible without any morale’s…

I think that now there is a demand for VAT registration for all foreign sellers selling in the UK, it will make an effect slowly because the cost will go up on the accounts depending on there sales.

Ebay has had to make all sellers that sell more than 84,000 year VAT registered regardless , not sure what Amazon has done?

13% Massive Rebate due so that’s where all the profit has gone all these years !

I do wonder if the sellers that appear to exonerate this VAT issue , whether they are or should be VAT Registered?

I am still confused on VAT we pay.
Amazon pays a seller after deducting its 15% selling fees.
Do we have to pay vat on the gross sales or we have to pay vat on the amount that Amazon has paid back after deducting its selling fees?

For example, sold something for £100. Amazon fee @ 15%will be £15
so are we paying VAT on £100 OR on £85?