Hi,
We are UK-based, and all VATs are paid (except the upcoming one) . Amazon sent the email below, although we submitted all the documents that clearly proof we are in the UK.
Does anyone know what it means below email? Are they closing the account?
Hello,
Thank you for your submission. Based on a review of your account and the information provided, we have concluded that your business is not established in the UK for Value Added Tax (VAT) purposes.
Why did this happen?
We must collect and remit VAT from non-UK established selling partners for the sales of goods delivered to customers in the UK. Based on a review of your account, we determined that you may not be UK established for VAT purposes.
This may have resulted in inaccurate tax treatment of your sales under the VAT on eCommerce legislation (effective 1 January 2021 in UK). We leveraged a combination of automated means and expert human review to identify this issue and make this decision. We took this action in accordance with the Amazon Business Solution Agreement:
https://sellercentral-europe.amazon.com/help/hub/reference/external/G201190440
and the APUK Agreement:
https://sellercentral-europe.amazon.com/help/hub/reference/G201190400
What actions do I need to take?
You will need to pay the VAT amount to Amazon for the historical unpaid VAT for the sales of goods delivered to customers in the UK on all sales from 1 January 2021, which fall under the UK VAT on eCommerce legislation. We will send you additional information regarding next steps, including payment options.
You can continue to sell, but your Amazon sales proceeds will remain temporarily ineligible for disbursement and any FBA inventory blocked from removal from this account, and any related accounts, until any UK VAT owed is paid to Amazon. Additionally, within 10 days we will begin to collect and remit VAT taxes on your future sales for goods delivered to UK customers.
Has there been an error?
If you wish to appeal this decision, reply to this email. You may be required to provide additional information and documents during an appeal process, which we will communicate to you via email.