How to let Amazon know that I am VAT Exempt


Started selling on Amazon about 3 months ago. Not the best experience. Particularly appualling is the customer support that I found 90 percent of the time either copy and paste things already on the site without bothering to check on the backend what your individual situation is let alone rectify issues.

Recently read on seller forum that not sorting out VAT could affect sales and since I get exactly 1 sale per day or 1 every few days, seemed programmed and now thinking maybe Amazon does not realise am VAT exampt. When I try to confirm on seller central, I go through a loop and even the litmus test seems to think I need to be VAT registered. The law says within a 12 month rolling period if my revenue is less than £80k I don’t need to be. However when I try to declare I am, I get a message saying
You do not meet our terms for receipt automatic genration… according to our records you do not meet the terms and conditions to be Vat exempt…

Anyone else with this problem ?


Ever signed up for Pan-EU?

Also it’s worth doing an inventory report to see whether you have any stock stored in the EU. Customer returns can trigger a VAT requirement.


Are you a UK citizen, with a UK registered and addressed business, shipping goods solely from within the UK?


If you are based in UK, your stock is in UK, and you sell only to UK, and you do not have any stock stored overseas then you do not have to be VAT registered until your turnover is £85,000, though in some instances voluntary registration can be beneficial - you need advice on that, as VAT is another whole ball game.


Yes am British and only trade in the UK. I have never sent goods to FBA outside the uk before.


Yes my point exactly. I know all that, problem is Amazon says my records show I need to be VAT registered. Seems a load of bulls to me. I have bearly sold 20 items and not even got a thousand pounds in revenue, losing about £7k in stock because I also tried to sell face masks which got rejected mostly likely because I sent alibaba receipts.


On one of your other posts, you have said that you have sold in another country - albeit by accident. I wonder whether this is affecting you now in some way?


Oh yes, sold in Germany and france through Build international listings. I assume that doesn’t mean my stock is stored in another country. I thought I had to use the Partner Carrier program to store my goods in another country. Besides I have not sold outside the UK since Brexit, Amazon doesn’t ship outside the Uk any more because of boarders, except you send stock to fba outside the uk.


so have you done that?


No it won’t i don’t believe, but you would have had to make some VAT declaration after you made the sale…did you?..if not I wonder whether this is what is affecting you now?


You need to check whether any stock ever went into an EU country - also whether any returns went into stock there, cos I’ll bet this is it… Either of these scenarios make you liable to be Vat registered in that country.

This could be anytime since you started not just since Brexit.


Just going back to your original question, by VAT exempt do you mean dont pay VAT on fees?

at what point is Amazon saying you need to be VAT registered? A lot of emails they send out are standard ones that dont apply to most people, normally you wouldnt tell Amazon anything about VAT until you are VAT registered


No never sent stock to fba outside the uk. I have only sent stock to fba once and that was fba in the uk


@Marie_Naomi. After you made the sales in Germany and France you would have needed to make a declaration that you were not required to be VAT registered in those countries. You would have got a notification about this and an EMail and it would have asked you a series of questions, including ‘where you stock is stored’. Did you complete these declarations…if you did not, then it may be affecting you now

Edit - it would have said something like “comply with your German tax obligations now”


Yes by VAT exempt I mean not having to add VAT to selling price, since I have not hit the 85k threshold.

I got worried after reading about someone else’s experience on the forum here. How Amazon restricts sales for those who’s records are not complete. Then got alarmed because when I try to declare that I am VAT exempt on seller central I get conflicting message returned saying thier records says I should be VAT registered.


There’s a clue in that screenshot - complete your tax settings…


As I said, it takes you through a loop. I Took the litmus test too, which only asks if I have stock in the Uk…doesn’t ask about revenue threshold.

To complete my tax setting, went to declare vat exempt page which took me to "our records show your not exempt…


Let me try once more. Go to your performance notifications. Does it say “comply with your German/French tax obligations now”. If you see that notification, action it. If that’s not the issue then I am afraid that I am out of suggestions


Wish there was someone who has gone through this too. Thanks to everyone who contributed. Appreciate your time.


Are you on a professional plan…if so you will have a chat option with SS. Try that, but remember its about communication and although the quality of advice can vary greatly, don’t put all SS associates in the same basket