Can somebody help us with this issue?

We are a UK company, always have been and have been selling on Amazon for many years. Recently we deregistered for VAT and let amazon know about this. We have provided masses of information about the company and the owner to Amazon confirming that we are a UK company. However, they believe we are not in the UK and will now calculate the VAT we owe? We have been paying VAT in the UK until the point we deregistered and can't understand why they're doing this!

I hope this message finds you well!

I am writing to address an issue regarding my account and the recent suspension of disbursements. It appears that Amazon has concluded that my business is not established in the UK for Value-Added Tax (VAT) purposes, which has led to the current situation.

According to the instructions received on July 2, 2024, in Case ID: 9938928442, Amazon has accepted my VAT exemption status based on my Unique Taxpayer Reference (UTR) and Certification of Incorporation. As per this acknowledgment, Amazon has confirmed that my company is established in the UK for VAT purposes with VAT exemption.

Therefore, Amazon cannot legally withhold VAT on my behalf for sales, as doing so is not compliant with HMRC regulations given my VAT exemption status.

If the government exempts us from VAT, why would Amazon be authorized to charge VAT on our behalf and why would Amazon be charging us for VAT, despite HMRC not doing so?

This situation raises concerns about compliance with VAT regulations and the legitimacy of such charges.

Given this understanding, I kindly request the immediate reactivation of my disbursements and the processing of my VAT refund as detailed in Case ID: 9938928442.

My account is currently active, but the disbursements remain suspended, which is significantly impacting my business operations.

I appreciate your prompt attention to this matter and look forward to a swift resolution.

Thank you for your assistance.

Best regards,

Roberto

Saleste LTD

anyone else get the notice from Amazon today?

"We have received a notice from the UK tax authority, His Majesty’s Revenue and Customs (HMRC), that they have determined that you are not established in the UK for VAT purposes. We must comply with HMRC’s indication, as the responsible tax authority, even though we previously confirmed your establishment in the UK, based on our assessment.

As a consequence, effective upon receiving this notice, the disbursements of part or all of your Amazon sales proceeds to UK customers have been temporarily withheld. Also, your Fulfilment by Amazon (FBA) inventory may be temporarily blocked from removal, unless the funds withheld exceed your estimated liability. Additionally, within 10 days, we will begin to collect and remit VAT taxes on your sales for goods delivered to UK customers."

I have no idea if HMRC have actually said this to Amazon or if its just a repeat of the situation earlier this year, I'm curious if anyone else has been affected by this again or just me?

I am and have always been a UK based business and always pay my tax obligations in full so I don't know where they've got the idea that I'm not.

Amazon throwing so many curveballs at me lately, between 'competitive pricing' policy and overcharging me FBA fees based on false measurements. Feels like they're squeezing everything out of us sellers, even more so than usual.