VAT Changes on Sales to UK Customers
Starting January 1, 2021, the way that UK VAT is collected on sales to customers in the UK will change under new legislation being introduced by the UK Government.
Amazon will be responsible for collecting UK VAT on the following sales of goods delivered to customers in the UK where ordered through any Amazon storefront:
- Goods delivered from inventory stored outside the UK with a parcel value of up to £135; and
- Goods delivered from inventory stored in the UK, irrespective of value, where you, the seller, are not established in the UK.
Where either of these supplies take place, Amazon will calculate and collect UK VAT from the customer at checkout and remit this directly to the UK Tax Authorities. You will not receive the UK VAT amount in your disbursements and will not be required to remit these amounts to the UK Tax Authorities.
Please note that the current VAT exemption for sales of goods under £15, where goods are delivered to UK customers from inventory stored outside of the UK, will also be removed from January 1, 2021. At that point, UK VAT will be calculated and collected by Amazon on these sales irrespective of their value.
Further information regarding this change and the implications for your business, is available on the UK VAT Ecommerce Legislation help page.
69 replies
Seller_LnhtxRbgL9RW2
We are a EU based seller with inventory stored only in FBA-DE. So after Jan 1, will orders to UK customers continue to be fulfilled from FBA-DE inventory and we dont have to register for UK VAT? (Of course, as long as package value limits are respected).
If so, that is good news for small businesses like us who did not want to have the headache of additional VAT registration in UK.
Seller_G44w17KvDQ4nj
These will be also collected from UK Sellers that are not yet registred on UK VAT?
Seller_4ygUYoHz4ZsPX
I am wondering how UK flat fee VAT registered, EU based companies (outside of the UK), will be treated in this setup. If the flat fee model is not incorporated, Amazon will be charging higher VAT than the seller are obliged to pay to the UK government.
Seller_pPdCjDZ0E7Bfi
At last no more VAT evaders, i envisage prices increasing across the board on amazon.
Good news for the UK, more money staying in this country.
Seller_0PP6NkoPynzEP
About time I’ve been saying this should have happened years ago, finally, distance sellers can no longer avoid/fiddle their VAT to gain an advantage
Seller_nKqNWKHfZWsny
Coming from a shipping background before this madness, I took a decision some years ago to never export. The time has come for an equal playing field for UK sellers selling to the UK. How can it be right that China and EU can be cheaper than something sent within the UK. The postal union schemes for no large letter charges when we are charged and state sponsored mail is also wrong. Sorry if you export a lot, but this little business will hopefully see some quality growth and profits, (probably not on Amazon, though, LOL!)
Seller_Xpg0j76yeJ7rb
Its a very simple change and will create a fairer system. I compete mostly with chinese sellers who will now suffer VAT at point of sale. Many of these previously sent, even high value items, as samples or gifts thus meaning no VAT was ever paid on the import giving them an unfair advantage. Losing 20/120ths of every sale to VAT will mean they need to increase prices.
The Online Market Place (OMP) now has to account for VAT at the actual selling price NOT some fake value dreamed up on the customs paperwork so the UK will benefit by millions of £s
Every OMP has to comply so ‘the other place’ will have to apply the same rules to its millions of similar chinese sellers.
Seller_2AkMpLvym0zA7
We are a Mobility company, our customers are VAT exempt for mobility products. How is this going to work for us? If Amazon are going to take 20% off our sales automatically, and we still have to give the customer 20% back.
Hopefully there’s someone from Amazon I can speak with, as this is unique situation.
Seller_zRxGmTYygCKIT
Great news…! Will level the playing field, especially with those sellers who are not in the UK and ship from outside of the EU, so have a VAT advantage (with LVCR).
The thing is… What is to stop a seller from registering a UK address, but then shipping the goods from outside the UK, and not telling Amazon that this is the case. Amazon wont deduct the VAT automatically.
VAT Changes on Sales to UK Customers
Starting January 1, 2021, the way that UK VAT is collected on sales to customers in the UK will change under new legislation being introduced by the UK Government.
Amazon will be responsible for collecting UK VAT on the following sales of goods delivered to customers in the UK where ordered through any Amazon storefront:
- Goods delivered from inventory stored outside the UK with a parcel value of up to £135; and
- Goods delivered from inventory stored in the UK, irrespective of value, where you, the seller, are not established in the UK.
Where either of these supplies take place, Amazon will calculate and collect UK VAT from the customer at checkout and remit this directly to the UK Tax Authorities. You will not receive the UK VAT amount in your disbursements and will not be required to remit these amounts to the UK Tax Authorities.
Please note that the current VAT exemption for sales of goods under £15, where goods are delivered to UK customers from inventory stored outside of the UK, will also be removed from January 1, 2021. At that point, UK VAT will be calculated and collected by Amazon on these sales irrespective of their value.
Further information regarding this change and the implications for your business, is available on the UK VAT Ecommerce Legislation help page.
VAT Changes on Sales to UK Customers
Starting January 1, 2021, the way that UK VAT is collected on sales to customers in the UK will change under new legislation being introduced by the UK Government.
Amazon will be responsible for collecting UK VAT on the following sales of goods delivered to customers in the UK where ordered through any Amazon storefront:
- Goods delivered from inventory stored outside the UK with a parcel value of up to £135; and
- Goods delivered from inventory stored in the UK, irrespective of value, where you, the seller, are not established in the UK.
Where either of these supplies take place, Amazon will calculate and collect UK VAT from the customer at checkout and remit this directly to the UK Tax Authorities. You will not receive the UK VAT amount in your disbursements and will not be required to remit these amounts to the UK Tax Authorities.
Please note that the current VAT exemption for sales of goods under £15, where goods are delivered to UK customers from inventory stored outside of the UK, will also be removed from January 1, 2021. At that point, UK VAT will be calculated and collected by Amazon on these sales irrespective of their value.
Further information regarding this change and the implications for your business, is available on the UK VAT Ecommerce Legislation help page.
69 replies
69 replies
Seller_LnhtxRbgL9RW2
We are a EU based seller with inventory stored only in FBA-DE. So after Jan 1, will orders to UK customers continue to be fulfilled from FBA-DE inventory and we dont have to register for UK VAT? (Of course, as long as package value limits are respected).
If so, that is good news for small businesses like us who did not want to have the headache of additional VAT registration in UK.
Seller_G44w17KvDQ4nj
These will be also collected from UK Sellers that are not yet registred on UK VAT?
Seller_4ygUYoHz4ZsPX
I am wondering how UK flat fee VAT registered, EU based companies (outside of the UK), will be treated in this setup. If the flat fee model is not incorporated, Amazon will be charging higher VAT than the seller are obliged to pay to the UK government.
Seller_pPdCjDZ0E7Bfi
At last no more VAT evaders, i envisage prices increasing across the board on amazon.
Good news for the UK, more money staying in this country.
Seller_0PP6NkoPynzEP
About time I’ve been saying this should have happened years ago, finally, distance sellers can no longer avoid/fiddle their VAT to gain an advantage
Seller_nKqNWKHfZWsny
Coming from a shipping background before this madness, I took a decision some years ago to never export. The time has come for an equal playing field for UK sellers selling to the UK. How can it be right that China and EU can be cheaper than something sent within the UK. The postal union schemes for no large letter charges when we are charged and state sponsored mail is also wrong. Sorry if you export a lot, but this little business will hopefully see some quality growth and profits, (probably not on Amazon, though, LOL!)
Seller_Xpg0j76yeJ7rb
Its a very simple change and will create a fairer system. I compete mostly with chinese sellers who will now suffer VAT at point of sale. Many of these previously sent, even high value items, as samples or gifts thus meaning no VAT was ever paid on the import giving them an unfair advantage. Losing 20/120ths of every sale to VAT will mean they need to increase prices.
The Online Market Place (OMP) now has to account for VAT at the actual selling price NOT some fake value dreamed up on the customs paperwork so the UK will benefit by millions of £s
Every OMP has to comply so ‘the other place’ will have to apply the same rules to its millions of similar chinese sellers.
Seller_2AkMpLvym0zA7
We are a Mobility company, our customers are VAT exempt for mobility products. How is this going to work for us? If Amazon are going to take 20% off our sales automatically, and we still have to give the customer 20% back.
Hopefully there’s someone from Amazon I can speak with, as this is unique situation.
Seller_zRxGmTYygCKIT
Great news…! Will level the playing field, especially with those sellers who are not in the UK and ship from outside of the EU, so have a VAT advantage (with LVCR).
The thing is… What is to stop a seller from registering a UK address, but then shipping the goods from outside the UK, and not telling Amazon that this is the case. Amazon wont deduct the VAT automatically.
Seller_LnhtxRbgL9RW2
We are a EU based seller with inventory stored only in FBA-DE. So after Jan 1, will orders to UK customers continue to be fulfilled from FBA-DE inventory and we dont have to register for UK VAT? (Of course, as long as package value limits are respected).
If so, that is good news for small businesses like us who did not want to have the headache of additional VAT registration in UK.
Seller_LnhtxRbgL9RW2
We are a EU based seller with inventory stored only in FBA-DE. So after Jan 1, will orders to UK customers continue to be fulfilled from FBA-DE inventory and we dont have to register for UK VAT? (Of course, as long as package value limits are respected).
If so, that is good news for small businesses like us who did not want to have the headache of additional VAT registration in UK.
Seller_G44w17KvDQ4nj
These will be also collected from UK Sellers that are not yet registred on UK VAT?
Seller_G44w17KvDQ4nj
These will be also collected from UK Sellers that are not yet registred on UK VAT?
Seller_4ygUYoHz4ZsPX
I am wondering how UK flat fee VAT registered, EU based companies (outside of the UK), will be treated in this setup. If the flat fee model is not incorporated, Amazon will be charging higher VAT than the seller are obliged to pay to the UK government.
Seller_4ygUYoHz4ZsPX
I am wondering how UK flat fee VAT registered, EU based companies (outside of the UK), will be treated in this setup. If the flat fee model is not incorporated, Amazon will be charging higher VAT than the seller are obliged to pay to the UK government.
Seller_pPdCjDZ0E7Bfi
At last no more VAT evaders, i envisage prices increasing across the board on amazon.
Good news for the UK, more money staying in this country.
Seller_pPdCjDZ0E7Bfi
At last no more VAT evaders, i envisage prices increasing across the board on amazon.
Good news for the UK, more money staying in this country.
Seller_0PP6NkoPynzEP
About time I’ve been saying this should have happened years ago, finally, distance sellers can no longer avoid/fiddle their VAT to gain an advantage
Seller_0PP6NkoPynzEP
About time I’ve been saying this should have happened years ago, finally, distance sellers can no longer avoid/fiddle their VAT to gain an advantage
Seller_nKqNWKHfZWsny
Coming from a shipping background before this madness, I took a decision some years ago to never export. The time has come for an equal playing field for UK sellers selling to the UK. How can it be right that China and EU can be cheaper than something sent within the UK. The postal union schemes for no large letter charges when we are charged and state sponsored mail is also wrong. Sorry if you export a lot, but this little business will hopefully see some quality growth and profits, (probably not on Amazon, though, LOL!)
Seller_nKqNWKHfZWsny
Coming from a shipping background before this madness, I took a decision some years ago to never export. The time has come for an equal playing field for UK sellers selling to the UK. How can it be right that China and EU can be cheaper than something sent within the UK. The postal union schemes for no large letter charges when we are charged and state sponsored mail is also wrong. Sorry if you export a lot, but this little business will hopefully see some quality growth and profits, (probably not on Amazon, though, LOL!)
Seller_Xpg0j76yeJ7rb
Its a very simple change and will create a fairer system. I compete mostly with chinese sellers who will now suffer VAT at point of sale. Many of these previously sent, even high value items, as samples or gifts thus meaning no VAT was ever paid on the import giving them an unfair advantage. Losing 20/120ths of every sale to VAT will mean they need to increase prices.
The Online Market Place (OMP) now has to account for VAT at the actual selling price NOT some fake value dreamed up on the customs paperwork so the UK will benefit by millions of £s
Every OMP has to comply so ‘the other place’ will have to apply the same rules to its millions of similar chinese sellers.
Seller_Xpg0j76yeJ7rb
Its a very simple change and will create a fairer system. I compete mostly with chinese sellers who will now suffer VAT at point of sale. Many of these previously sent, even high value items, as samples or gifts thus meaning no VAT was ever paid on the import giving them an unfair advantage. Losing 20/120ths of every sale to VAT will mean they need to increase prices.
The Online Market Place (OMP) now has to account for VAT at the actual selling price NOT some fake value dreamed up on the customs paperwork so the UK will benefit by millions of £s
Every OMP has to comply so ‘the other place’ will have to apply the same rules to its millions of similar chinese sellers.
Seller_2AkMpLvym0zA7
We are a Mobility company, our customers are VAT exempt for mobility products. How is this going to work for us? If Amazon are going to take 20% off our sales automatically, and we still have to give the customer 20% back.
Hopefully there’s someone from Amazon I can speak with, as this is unique situation.
Seller_2AkMpLvym0zA7
We are a Mobility company, our customers are VAT exempt for mobility products. How is this going to work for us? If Amazon are going to take 20% off our sales automatically, and we still have to give the customer 20% back.
Hopefully there’s someone from Amazon I can speak with, as this is unique situation.
Seller_zRxGmTYygCKIT
Great news…! Will level the playing field, especially with those sellers who are not in the UK and ship from outside of the EU, so have a VAT advantage (with LVCR).
The thing is… What is to stop a seller from registering a UK address, but then shipping the goods from outside the UK, and not telling Amazon that this is the case. Amazon wont deduct the VAT automatically.
Seller_zRxGmTYygCKIT
Great news…! Will level the playing field, especially with those sellers who are not in the UK and ship from outside of the EU, so have a VAT advantage (with LVCR).
The thing is… What is to stop a seller from registering a UK address, but then shipping the goods from outside the UK, and not telling Amazon that this is the case. Amazon wont deduct the VAT automatically.
