I am VAT-registered (and registered as a nonresident Importer of Record) in the UK but have no operations there. I sell on Amazon UK solely through the FBA program. Currently, this means that I am filing quarterly VAT returns, and am able to treat the VAT I pay when importing goods to the UK (and for which I receive C79 forms from HMRC) as “input VAT” on the return.
I just received an e-mail from Amazon regarding changes effective January 1, 2021, which states, among other things:
“If you are delivering goods to UK customers from inventory stored in the UK, and your place of establishment is outside of the UK, Amazon will be required to collect and remit the applicable VAT. This will affect both sellers who use FBA in the UK and those who use third-party fulfilment methods.”
This leaves me a bit puzzled. I will continue to have to pay VAT at import on shipments which go to Amazon fulfillment centers. But if Amazon is collecting and remitting the applicable VAT for all of my sales, how on earth do I recover my input VAT payments? Does anyone know? Do I file a quarterly VAT return with no sales, only the inputs from my C79 forms? That seems like it would not be the correct method, but I am at a loss to see what else I could do.
I gather that all of this is a bit preliminary and perhaps nobody actually knows what the answer will be, but it is almost November and so I am hoping some sort of guidance might be available somewhere on it…