Determination of "Establishment" for UK VAT

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Seller_k1KGsmINF6cYA

Determination of "Establishment" for UK VAT

Dear All,

I have been selling on Amazon for over 2 years, however, just very recently I was emailed by the EU Amazon team to verify establishment for VAT Purposes. My company only has one director (me) I am British national and have only sold within the UK market and I am still not yet VAT registered as I have not yet hit the threshold.

My company is UK-based however, I have registered my business address as a virtual address for correspondence purposes. All my stock is received at my personal address.

I have provided all the documentation they have asked for however, they have determined that I am a non-UK established business which means I owe VAT on all my sales from Jan 1st 2021. This will be disastrous for me/my company.

I am reaching out to ask for advice.

Would it be wise to change my registered address to my personal address?

Would it be worth registering for VAT to support my case? (I was already thinking of registering for VAT)

Thank you.

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Seller_QuM1AZgzfU9x4

Whether it is better to be VAT registered or not is something every seller would need to work out for themselves based on their own numbers. Generally it's something that can be beneficial to leave until necessary, but not always.

Someone recently posted an extract of an Amazon message about not accepting virtual addresses as proof of being established in the UK Which makes sense given they are virtual addresses.

Did you send them invoices showing proof of receipt of goods to your personal address?

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