VAT De-Registering


Hi All

Hi I was just wondering if anyone has de-registered from VAT and what the correct procedure is?

Is it just a simple case of removing the VAT number from your VAT settings on Amazon or is there another process that needs to be followed?


If you are deregistering you need to deregister at HMRC & they will confirm when deregistration takes place.
Then presumably remove VAT number from Amazon (don’t know if they will require a copy of the deregistration certificate)
I posted a question along these lines asking if anyone had cancelled VAT on Amazon & if it caused a problem with the Amazon account, but no reply received.
I assume Amazon will then charge VAT on their fees etc. which of course you won’t be able to claim back.


Thanks for your reply, yeah I’m ok with the HMRC side of things. Its just the Amazon side of things I’m not to sure about and like you, don’t know whether it causes disruption to your account, ie documentation they might request etc.



As online abrasives have said, the correct procedure is to deregister with HMRC. You can request this online and if approved they will send you a notice of deregisteration which takes place from a specific date. You state your reasons for wanting to deregister and the final decision rests with HMRC, not you. If successful you go on to your Amazon settings and remove your VAT number. There was no reverification in my own case and you will then be charged VAT on all fees. Hope this helps.



One thing to bear in mind as we found out from our accountants is that you may have to assure HMRC that you will drop your prices by the VAT element ( sales vat less purchase vat) as leaving the prices the same could have the effect in some cases of putting you back over the VAT limit.


True. Hypothetically you estimate that your current turnover will drop to £75,000 - however that is typically based on ex VAT.

In reality your gross turnover would be £90,000 making you VAT liable.

The de-registration threshold is £83,000 so in effect to de-register your ex-VAT sales (based on your current accounting) need to be comfortably below £69,166 (keeping the same sale prices or you have to drop your prices by the VAT amount and not make the extra margin.


Hi I probably didn’t make it clear in my original post. Regarding the HRMC side of things and the criteria that must be met, ie threshold etc I am aware of this. The only thing I am not to sure about is with regards to the procedure of letting Amazon know. Is it a case of just removing your VAT number on Amazon, will Amazon require any proof, is there a period of time that your account can become de-active due to some kind of verification process?


Yes it’s just a case of removing VAT number for the Amazon side of things.
Contrary to other messages you are not obliged to pay VAT on Amazon fees after deregistering though you may need to remind Amazon of that fact.


Not come across this on HMRC - could you supply details?


It’s not correct…


Just remove your VAT number on Amazon and that’s it. They won’t ask for any documents. I did it like this last February and since then no one contacted me. Also, afterwards Amazon started to charge VAT on everything…


Incorrect - you may not want to pay it but Amazon are obliged to charge it !!!


Here is the policy which expands on the VAT paid in regards to Amazon fees.

Section S-6 Tax Matters states for:

VAT registered;

(a) If you are a business that is established in a European Union country and you provide us with your valid VAT registration number used for intra-EU transactions, VAT will not be charged by Amazon on the fees under these Service Terms provided you are not established in Luxembourg, and did not supply a VAT registration number issued by the Luxembourg authorities.

Non VAT registered;

(b) If you are in business and established in a European Union country, but you do not have a VAT registration number issued by one of the European Union countries, then you will be able to provide Amazon with other evidence that you are in business. Acceptable evidence is a copy of a recent corporate tax return or an official document issued by a government agency proving that you are in business. Once your evidence is reviewed and accepted by Amazon, VAT will not be charged by Amazon on the fees hereunder provided you are not established in Luxembourg.

Amazon Services Europe Business Solutions Agreement


Hi Niko,

Is that right??? I have been paying VAT even though I am an Ltd. Where should I submit my incorporation certificate? Do you have an email address please?

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