The key here is that the target is understandably non established taxable persons (NETPs) that are required to register as soon as they make a supply from the UK as they are not subject to the £85,000 threshold as the rest of us.
Amazon has decided that instead of reviewing just NETPs, it will look in to all sellers. There is nothing wrong with being a Ltd company and trading under another name… But the problem is that the NETPs are using VAT numbers attributable to other entities that they have no relation to.
So that is why we have all been hit. Understandably Amazon could’ve done this in a better way. But they have been ill prepared, and to meet the deadline set, they have got us all.
I have faith that those that are properly and honestly registered for VAT will not have an issue in the long run. There are of course some hurdles we will have to put up with for now and many of us are understandably annoyed and frustrated.
And I am not in the market where I am undercut by Chinese sellers etc, but once this is all sorted, you will be able to compete on a much more level playing field. To whom this applies, your profits will increase. These tax evading sellers will be removed, and maybe just finally, Amazon will start to care more about us UK sellers.
So yes, I do hope this short term nuisance leads to a brighter future for all of us.