What should I do with the mail form HMRC about the VAT registration?


#1

Hello everyone,

I am a chinese seller on Amazon. I’ve received few mails from HMRC. I didn’t responded them at first, and now they keep sending the mail to register VAT on UK.
Please tell me that not only me receive the mail from HMRC…
Have you responded them? And what do we actually need to do about it?

At first I though it was only a phishing mail…

Need your help in argent.


#2

As you are selling on AMAZON UK & your goods are stored in the UK you have to be Registered for UK VAT.
I have also noticed that you are selling items via FBA on all other AMAZON EU Marketplaces!
Are you having these orders Fulfilled from Stock in the UK or do you have stock in each Country?


#3

Then you have to by LAW Register in each Country that you have stock in.

Follow the Link to the AMAZON VAT Help page

You also need to take into account your items listed on eBay.


#4

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#5

If you carry stock in each country you need to register for VAT in each country as well, not just the UK. By not doing so you are breaking the law which can have all sorts of legal implications. The least being the closing of your account, the worst probably is legal action, closing of your account and all your stock being seized to cover taxes that have not been paid.

By not registering for VAT you are not just breaking the law in quite a few countries, you are also not paying VAT taxes on your products stored and sold in the EU. In this way you are probably able to offer at lower pricing (we all have to pay about 20% VAT on our sold products, depending on which country) which is also putting honest sellers livelihoods at stake.

If you wish to keep selling in the EU I suggest you get your VAT sorted in all the countries you keep stock as soon as possible. Ignoring the emails is probably the worst thing you could do as apparently you have their attention.


#6

I have stock in each country.
What will happend if I do not respond the HMRC mail?


#7

Can you copy and paste the email from HMRC so that we can check it out?
Thanks.


#8

What would happen if you ignored emails from the Chinese tax authorities and did not pay your bills?

If the answer is you would be in big trouble with fines and the chance of imprisonment.

Well the same would happen in each country you hold stock in.

If you failed to respond then your stock could be impounded and sold off to pay the relevant duties and large fines could be levied.


#9

You are breaking the law which can result in big fines and prosecution. I suggest you contact them ASAP and get your VAT sorted. Not being VAT registered is not just an offence, it’s unfair to UK sellers because you are undercutting their prices by saving on VAT that you should be paying.

Contact them ASAP.


#10

It’s quite handy, as it applies when their stock is in FBA (which is a massive selling point for Chinese sellers).

So very easily they could:

  • Confiscate FBA stock
  • Close accounts on Amazon and ask Amazon to withhold money from disbursements

#11

Can you post the email from HMRC, I’m curious.


#12

You have already breached tax laws in every country you sell in,you need to remove all your items from sale.You need to consult an EU tax specialist to register for VAT in every country you store stock before selling again.


#13

Why do you need to see an email its irrelevant,this guy has admitted breaching tax laws in every country.


#14

Not questioning the necessity to register for VAT but I’m just wondering (it doesn’t apply to me by the way).

What can HMRC actually do if foreign sellers don’t register for VAT? They can’t fine a foreign company, or can they?


#15

Dear Sir/Madam,

New measures were introduced by HMRC for some businesses established overseas that are required to be registered for VAT in the UK. With these new measures, we may:

· direct a business to appoint a VAT representative in the UK
· require a business to provide a security to HMRC
· rule that an online marketplace provider and/or a UK VAT representative are jointly and severally liable, together with the business, for any UK VAT debts that become due.

You can find more information on the New Measures by visiting www.gov.uk and searching for ‘overseas businesses using an online marketplace to sell goods in the UK’.

I now require you to read the attached letter and register for UK VAT. Can you please notify me by 16 February that this has been done and provide me with a copy of the reference

I also wish to review the following business records

· Annual accounts and bank statements
· Books of account: sales and purchase daybooks, cash books, petty cash books and ledgers
· sales and purchase invoices
· A brief overview of the business and its main activities to include when the business commenced and when it started to sell goods within the UK market.
· Import Records
· Completion and return of the attached Import Questionnaire

Should you wish to discuss this with a member of the online selling complaince team, as postal communications can take some time, you may prefer to correspond by email. Of course, there is no problem if you prefer to correspond by post in relation to this matter and I will assume this to be the case if you do not respond to this email. However, if you would prefer to correspond by email, HM Revenue & Customs requires a director of the company to confirm in writing that they understand accept the risks involved in using email. It is important that you have assessed the risks of using email to send information or to receive it. If you use email to send HMRC information, you do so at your own risk.

HM Revenue & Customs takes the security of personal information very seriously and recognises that it has privileged access to data, which we endeavour to protect. Therefore, in order for us to respond to any queries by e-mail, we need to obtain written confirmation that the director.
Has no objections to corresponding by email (if this includes agents or representatives – please specify), and
Understands and accepts the risks associated with e-mail, and
Has no objections to us sending information concerning the details of the company

HM Revenue & Customs will de-sensitise information wherever possible (e.g. quoting only part of unique reference numbers) and we are happy to discuss how you may do the same but still provide the information we need. However, if you would prefer us not to respond to your enquiries by email (e.g. because other people have access to your email account) we are happy to respond by post. For further information see: HMRC Privacy Policy

Therefore, if you accept the security risk and wish to correspond by email, please reply to this email advising that, although you are aware that email correspondence is not secure, you wish to use it. That will then give me authorisation to provide full details of my enquiry by email. Please note the email capacity has been limited to 8mb. Therefore, if the information to be supplied is more than this, separate emails, each less than 8mb, will be required.

General information regarding UK VAT can be found on our website, at www.gov.uk/hmrc

Kind regards

On Line Selling Compliance Team


#16

Hi everybody,

Thank you all. I am dealing with the VAT now. Thanks for your answers.


#17

New legislation has been passed that allows them to obtain data from marketplaces such as Amazon. If the seller continues to evade the VAT then HMRC can issue notice to Amazon which gives them 30 days to close the sellers account. If Amazon do not then they can be made liable for the unpaid VAT.

Not sure with regards to stock but I guess it would be seized.


#18

Information from marketplaces is not new. HMRC were informing sellers of that years ago.

Yes HMRC or amazon can seize stock held in the UK. What to do with it then? May cover part of the debt.


#19

They can act by raiding offending dealers warehouses, just as they do with fake goods and cease the goods, unlike fakes (that are destroyed) they have the right to sell via a public auction to recoup monies in lieu of payment.


#20

hello,
i am chinese seller .
could you please share how you deal with it.
Need your help.
Looking forward to your reply.

Edited by:chinese seller on Jan 4, 2018 4:14 AM