Not registered for VAT - How not to charge UK customers VAT
Hi,
We are a UK based enterprise. We operate through a Joint Partnership. My revenue is significantly below £85,000 VAT threshold. I am NOT VAT registered.
How do I set up my store in Amazon.co.uk so that VAT is not charged to my UK customers?
Regards
0 replies
Seller_7VbclcPFFRTnc
If you are not vat registered, vat is not charged to your customers (you are not collecting vat)
Your sales price is just a non vatable price
Seller_BS5lg2keRs2QO
Is there a particular issue which has lead you ask the question?
Seller_esvgLzKXw2YAl
And just in case, where are you physically located? In the UK?
Seller_tRuvBEHDedp4q
If Amazon is showing a Marketplace facilitator tax then surely this was a sale that is going to be sent to the EU?
In which case there is nothing you can do.
Laws were passed making Amazon the ‘supplier for tax purposes’. So when a UK to EU sale occurs Amazon have to collect and remit the VAT.
They do this by removing the VAT element from your sale (even though you are not VAT registered), giving you the proceeds then adding the VAT back on again to charge the customer, then Amazon remit the VAT themselves to the appropriate authority.
The fact you are not VAT registered in the UK and so your prices do not include any VAT, makes no difference.
There is no workaround except to increase your shipping costs to the EU to cover the loss of VAT on the whole order.
Seller_SeXC6ZVMpeJN6
You are all in fact correct. A french buyer purchased it on the dotuk site. Thanks for your time and knowledge.
