Warning on business sales to EU VAT registered customers
When you get a sale to a business in the EU that has provided their VAT number to Amazon, Amazon do not charge VAT, however they do not provide you with the VAT number at the time of sale (and when they do provide it to you, somewhat later, its in some obscure place). I have just spoken to HMRC VAT and they say that if you are not in possession of the VAT number at the time of supply then you must charge VAT, but can refund it when you receive the VAT number from Amazon. Obviously that is a bit of a problem as Amazon do the charging and don’t charge the VAT which they are supposed to charge on our behalf as they haven’t provided you with the VAT number. Even if that never comes to the VATman’s attention there is a greater risk that you won’t have entered the customer’s VAT number into your accounting software because of the belaboured process for doing this retrospectively, so you will wind up being hammered for every EU transaction that doesn’t have VAT where the transaction cannot be matched to a valid VAT number.
40 replies
Seller_KKcTTZzy6Jd6Q
Amazon are the ones who charge the customer and they then pay you at a later point in time, Amazon have the customer’s VAT number at the time of the sale and as such they don’t charge VAT.
As far as I’m aware the VAT numbers are always available to you before(or at the same time as) the funds become available for disbursement.
Although I do find it strange that Amazon don’t provide the VAT number immediately.
It would be wise to speak to an accountant about this, ideally one that has dealt with Amazon sellers before.
Seller_PtSZDCRO4f7e5
Hey
So I’m an accountant as well as a seller.
This has happened to one of my clients as well. Contacted my tax specialists & they have stated what Amazon are doing is illegal.
This need’s to be looked into more by HMRC.
Seller_Hg3zznbQySqDE
Just had my first VAT inspection and found out that I need to correct this type of sale.
If a sale to EC is to a VAT registered customer, they must supply you with their VAT / TVA number. There is a website (don’t know the URL) where you can check if a VAT number is genuine.
If they have supplied a legitimate VAT number this is added to your EC Sales list which must be submitted regularly.
As far as invoicing is concerned (to a VAT registered EC (Non-UK) country), VAT is zero-rated but you must be able to provide information that package was sent to and received by customer. Normally a courier can supply this information - you have to keep a record. Information is given in VAT notice 275
As far as non-VAT registered customers are concerned, you must charge them 20% VAT rate.
I only sell to UK on Amazon and don’t know about the supply of the EC VAT number to sellers.
This is my understanding of what needs to be done. I am open to any corrections
Seller_Ozq4XOJUdmkhe
If Amazon don’t provide you with the VAT number of the customer inform them of their obligations and should they not send the VAT numbers of the customers, send Amazon the bill as HMRC will only charge you