Amazon USA Charging VAT for Non VAT Registed UK Companies
Amazon.com USA is charging me VAT on FBA services invoices. On challenging they say I have to be VAT registered for them to remove them. We are a limited trading company operating just below the VAT threshold.
Checking HMRC rules, VAT is not charged by foreign entities to UK businesses on what is called a Reverse Charge basis. HMRC states the rules apply even if the UK company is not VAT registered. The only requirement is that it is a trading business.
I have challenged them via USA support, but get the answer that effectively it's a UK issue and we no nothing
3 replies
Seller_76AUwmqvSyRIM
Check your invoice. Which Amazon division is invoicing you? The UK branch? If do, they should charge VAT.
I recall reading something about being invoiced by your local country, whichever country the fees apply to although I thought this was only for UK/EU.
BTW, it makes no difference whether you are VAT registered or not.
