VAT refund - new question
Hi,
Hope it’s okay to start a new thread. I’ve checked all the others for this question and can’t that it’s been asked before.
Amazon are refunded VAT for the last 4 years. I am not VAT registered but, as most know, they shouldn’t of been charging me because Amazon charges are for supplies from outside UK.
I’ve confirmed this with HMRC, both by speaking to them and in their help pages, just to be sure).
My question is this - If I add the invoices to my turnover in each of those years, I was never over the threshold for VAT. However, if I add all 4 years invoices on to this years turnover (because the refund is for VAT on all of those invoices), I would be over the VAT threshold for this period of 12 months. Going forward, my turnover together with the Amazon invoices wont be over the threshold so that’s straightforward.
Hope I’ve explained that clearly!
Has anyone come across this question or queried it with HMRC themselves). Just wanted to check before I wait for over an hour to speak to HMRC again.
Caroline
148 replies
Seller_esvgLzKXw2YAl
Your turnover for VAT purposes is always the preceding 12 months. No more and no less.
So as long as you have not gone over the threshold in any 12 month period, it shouldn’t be an issue.
Whatever refunds you have received, should be accounted for in the totals, but only for the period that they cover.
Seller_7VbclcPFFRTnc
I’d advise you speak with your accountant
Seller_LdbpJ6pxzzvXO
Hi I already have a thread running on this, should answer your questions C
Seller_wiWpl3BOZntOa
I haven’t received the refund yet but they have stopped charging me VAT and said they can refund for the past 4 years.
I don’t want spread the refund over the last 4 years, that will all go on this years accounts (I can’t anyway, i am on the cash based accounting system so account for income and outgoing as it literally happens, not on invoice dates).
The refund will relate to 4 years worth of Amazon invoices, therefore I’m trying to work out if all 4 years worth of invoices will have to be added to this years turnover (on paper) to work out if I need to register for VAT - in which case i would apply to be exempt because it’s a temporary, one off, increase in turnover). This is purely a calculation on paper - my turnover wont actually have gone up (apart from by the amount of the actual refund).
I had a refund from them a few years ago but I’d become VAT registered (the refund was for before i became VAT registered) so i just reversed the charge (but accounted for the actual refund it in my income). I then deregistered and have been incorrectly charged VAT since (until now).
This isn’t something I would trust an accountant to answer, I want something in writing from HMRC.
I’ve given up asking them, emailed my MP and asked him to ask them! It’s a government department, after all, and he might have more luck than me. He’s usually brilliant at getting a proper response from the different departments, on various issues.
This should be a basic VAT question really, the guidance is straightforward apart from this one sticking point.
Seller_OoP2RYT6fewxQ
I’m a UK seller not vat registered but have been charged Vat by Amazon on all invoices, I wasn’t aware that this was potentially wrong and maybe I could try and get a refund. What’s the best way to go about trying to get a refund?
Seller_1vyLJePYDN9hf
Are they messing you about with the actual refund, Caroline? They owe me eight years worth. Been arguing with them since September. They have finally agreed I am VAT exempt and have promised me my refund several times, but all they do is send stalling messages saying it is being looked at by another team, or occasionally they come back and ask for another document that has already been provided, or try to claim that a name here is not the same as a name there, etc. etc. Pure obstruction. I have a solicitor on it and will take them to court for this refund very soon if necessary. Wondered if this is their standard tactic?
Seller_5YnUBBEgHZOv5
Hi!
Apologies for asking something slightly off-topic, but can I ask about these VAT refunds?
This is the first I’ve seen regarding this. I’ve searched for 'VAT refund across the forums and I can’t find anything.
Can anyone point me at the relevant information, please? Thanks!
Seller_LVJaidBR9PT5Z
Hello, i have been through this over the past 3 years before and to get this refunded you need to claim as VAT exempt to HMRC which then you will receive an exemption letter stating this which you provide to amazon and they will refund the fees up until the date that you claim you are exempt and will no longer charge you fees. Of course if you go over the threshold you then need to sign up for VAT and claim this to amazon too. Hope this helps.
Seller_J2H5GprhaORbt
I find it strange , that you will not trust an accountant, but you will trust answers from Amazon sellers , who on the who are not qualified to answer your question
Seller_1vyLJePYDN9hf
Nobody who could read the entire thread of my exchanges with Amazon over this, going back to September, getting sent around and around in circles, promised a refund mulitple times, then a few days later asked for documents already provided, etc. etc. could possibly argue that they act honestly in the matter of VAT charges. There is always a troll on here who will defend even the most outrageous Amazon practices.
