Amazon froze our 6-figure sum on after the season sales and doesn't release funds | HELP!
Dear Amazon Sellers Community,
I’m reaching out to share my frustrating experience with Amazon and to seek advice from others who may have faced similar issues.
For over 1.5 months, my funds—amounting to a 6-figure sum—have been frozen due to a VAT-related issue. During discussions with Amazon’s MDRI team earlier this year, we agreed that the VAT balance would be deducted from the proceeds of my inbound sales. I followed through, sending goods produced in Ukraine to Amazon's warehouses. However, instead of honoring this arrangement, Amazon froze my funds and blocked disbursements.
This situation has left my small business on the brink of collapse. My team is based in Ukraine, and we are already facing immense challenges due to the ongoing war. Many of my employees are directly impacted by the conflict, and the withheld funds mean I cannot pay salaries, suppliers, or taxes.
I’ve tried escalating the issue through all available channels, but I’ve received no meaningful responses. The MDRI team is unresponsive, and I feel completely ignored.
I’m now considering escalating the matter legally or publicly, but I wanted to first reach out to the community for advice. Has anyone else faced such issues with VAT-related freezes or fund withholding? What steps did you take to resolve it?
I’m hoping Amazon sees this and understands the real-life consequences of their inaction. Any guidance from the community would be greatly appreciated.
Thank you,
V, Director
4 replies
Seller_G1PKKllhFr07V
Honestly, the forum - and the mods - are unable to help here.
It seems you'll need a tax lawyer and a business lawyer, both being specialized in international trade affairs. Which is not going to be cheap.
Amazon went into "protection mode", if there are any tax issues, Amazon is responsible for them. And you will likely not hear anything from them, as that would could be interpreted as a legal statement - which they can't issue, if the issues are not resolved.
If think the correct way is to get an "all clear" statement from the tax authorities in each country you are doing business in. But that's what the tax lawyer is for - he will tell you, what to do.
Unfortunately, Amazon does not like legal/tax/business trouble, so don't expect doing business in the future on the Amazon platform. So your company maybe die, as it is. That's the cruel truth, better prepare in time for this. On the plus side, your account does not seem to be blocked as of now, I'd say that is a good sign. Your main target is to solve the tax issues and release the funds.
Note: This is my personal opinion and should not be considered being a professional advise.
