I am posting this mainly to document what has happened

I am a UK sole trader. I was born in the UK, live in the UK and operate my business entirely from the UK. I do not sell internationally. I am not VAT registered as my turnover remains below the £90,000 VAT registration threshold.

My UK identity, UK address and UK bank account have all been verified by Amazon. My account has successfully passed Amazon's verification processes on numerous occasions over the years, typically around once per year. I had the account verified status as I always do. Verification is not new to me and comes with the territory of selling on Amazon

I have no issue whatsoever with Amazon carrying out verification checks. If Amazon requires evidence, I am happy to provide it and always do.

However this time things are a little bit difference, on 28 August 2026 Amazon informed me that it had determined that I was not UK established and immediately began applying Marketplace Facilitator VAT to my sales. These charges are not applicable to my circumstances and are not recoverable by me.

I immediately contacted Account Health and explained that I am a UK-established sole trader and that Amazon already holds verified information relating to my identity, address and bank account. My last verified checks were September 2025.

My concern is not that Amazon wishes to verify my status. My concern is that Amazon has chosen to apply the financial consequences of treating me as a non-UK seller before completing the verification process that is supposed to determine whether that conclusion is correct, which it will find is not.

The additional Marketplace Facilitator VAT immediately made many of my sales commercially unviable. As a temporary measure, I attempted to increase prices to offset the additional costs. However, Amazon subsequently deemed my pricing uncompetitive, resulting in loss of Featured Offer eligibility and a substantial reduction in visibility.

Prior to this issue I was averaging around 50 sales per week. Following the change, I ultimately had to deactivate listings because continuing to sell would have resulted in losses or none featured listings and I gained no sales with the uncompetitive pricing anyway.

I have repeatedly raised the matter with Amazon and was initially advised that the verification process would take approximately three days. Those three days have now passed and the issue remains unresolved.

I have since received a response indicating that managing director who will provide a further update, potentially within up to 35 business days.

For context, a substantially similar issue arose on my account in January 2024. On that occasion I provided evidence of my UK establishment and the matter was resolved within approximately two days without the same financial consequences being applied while checks were ongoing. Last time this happened to me it was featured in the press. Check Telegraph amazon-told-government-unfreeze-funds-hundreds-sellers/ you will see my name featured (Wyatt)

I have now submitted a formal Letter Before Claim to Amazon because I believe the losses suffered by my business arise from Amazon's decision to apply this treatment before completing its verification process. Their terms do not state they can apply charges pending verification, Amazon here is basically finding someone guilty before the jury decides they are not.

I am continuing to cooperate fully with Amazon's verification requirements and remain 1000% confident that the verification process will confirm that I am, and always have been, UK established.

At this stage I am simply seeking a prompt resolution and documenting the steps I have taken to raise and resolve the issue. This information is me putting it out there. (again)