I am not vat registered.
Dear All
I had priced a unit for £39.99. And been selling at that rate. However, today I noticed that the unit has sold for £34.99 (in fact this would leave me out of pocket because my profit is very marginal).
I asked seller support and received the response below.
"Regarding your concern we have checked all the details and found that your product was sold under price £34.99 for order id xyz because the shipping address of the product was St Martin Channel islands JExyzUP which comes under VAT exempted. Customer from this address does not need to pay VAT for the product. They are exempted from the VAT that is why your order was sold with price £34.99 (excluding VAT)."
I have a few questions if you could help me please
Does Amazon collect or deduct vat from sellers?
I thought it was criminal to apply vat on products when we are not vat registered, so how is Amazon assuming that my units have vat?
I am a small seller. I don't have such turn over enough to register as vat as I am trading well below the £85k threshold.
How does this work please?
Is there a way to stop shipments to Channel Islands? No offence to our Channel Island customers but it is just that such sales are painfully crippling.
Many thanks for your time in advance
11 replies
Seller_ZVAz3d5lZuGid
I do not sell outside UK, but I do know that the rules changed at the beginning of July for sales to the Channel Islands. To get the full details sim-ly type in VAT Jersey into the blue search bar at top of page. Here is some of the info :
Jersey imports goods and services tax FAQ
What is Jersey’s imported goods GST law?
Effective July 1, 2023, Goods and Services Tax (GST) of 5% must be applied on all purchases from Amazon stores which are imported in Jersey (shipped from outside of Jersey to Jersey). Also, an Import Fees Deposit (IFD) is charged on all shipments above 135 GBP (unless purchased from .co.uk online store, in that case there is no IFD).
How does Jersey’s imported goods GST affect my Selling on Amazon account?
Amazon will automatically calculate, collect, and remit GST at the prevailing standard rate. The GST will be calculated based on the price and delivery charges that you have set in Seller Central.
