VAT Exemption
Hi folks,
Another general question! This time regarding VAT.
We are in the process of becoming ‘VAT Exempt’ on Amazon.
Due to the timing of automatic invoices etc we have to wait until 17 April, which is no problem.
Amazon say they won’t charge VAT to us after we obtain exempt status and that they will also process a VAT refund up to 17 April.
Being an accountant myself and carrying out VAT returns daily (for small UK traders), I don’t quite understand how Amazon can charge some sellers VAT and some sellers none. From my knowledge, on Amazon’s side of things it doesn’t matter if our company is VAT registered or not, they still have to charge VAT? This is maybe a different scenario if Amazon EU is invoicing us, not Amazon UK?
Anyway, has anyone applied for VAT exemption before? Has Amazon refunded VAT on all the payments it’s collected? For example, the VAT they charge on referral, advertising, subscription fees? I’m just wanting to know if we can actually expect to get all the VAT charged to us refunded.
Thanks.
3 replies
Seller_7VbclcPFFRTnc
This is exactly why
Many have done it and are still exempted , with refunds given on vat charged before exemption too
Advertising is invoiced from uk though so treated in the ‘usual’ way
Don’t forget that going forward, you need to add the total value of your seller fee invoices onto your turnover to calculate the vat threshold
ie turnover £60000 + seller fee invoices £25000 = £85000 , now means you have to register for vat
Seller_qZO3ZCjoBXEeL
Exactly this is an EC reverse charge for services invoiced from Luxembourg. If VAT registered you self account for them on your return. If you aren’t they just get 69’d.
