VAT Flat Rate Scheme



We are business registered in EU and being also registered as VAT payer in the UK under the “VAT Flat Rate Scheme”. Meaning - we are not paying standard 20% rate.
I understand that from 01.01.2021 Amazon itself will retain VAT from our sales with Amazon FBA and send it directly to HMRC.

Will Amazon take into account that we are “VAT Flat Rate Scheme” payer and send to HMRC VAT calculated according to our registration with them or they will use standard rate?

Thank you!


As far as I’m aware amazon don’t recognise the FRS


It’s worth speaking to you accountant about this. I suspect you’ll have to claim the difference back through your vat return, which will pretty much negate the point of the simplicity of the FRS.


Thanks! I have asked also to Amazon itself, still waiting for answer. Yeah, in case I need to claim back difference it’ s getting a bit complicated…


If it’s Amazon retain VAT from sales. It’s 20%. No flat scheme.


Thank you for help. If it so, it complicates selling there…


Thank you for help. Need to reconsider then is it worth the effort…


You can think about to increase your sales revenue. When you reach a certain amount, it must be 20% standard rate.

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