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Unfair Hold on US Amazon Seller Account Funds Linked to UK Account
Hello Amazon Sellers,
I'm reaching out to share my recent frustrating experience with Amazon's handling of our account funds. We received a VAT bill from Amazon for our UK account, which we promptly paid. According to Amazon, the funds were supposed to be released 10 days after payment. However, it has now been almost 30 days since we paid the VAT bill, and our funds are still on hold.
To provide some context, our Amazon UK account was on hold for over two months due to the outstanding VAT tax. Consequently, Amazon placed a hold on the disbursement of funds from our US account, citing the UK account's issues. I find this situation to be incredibly unfair and frustrating for several reasons:
1. **Distinct Legal Entities**: The US and UK accounts are separate legal entities. Any problems should be addressed within the specific account in question. It seems unreasonable to penalize our US account for an issue that solely pertained to the UK account.
2. **Prompt Payment**: We paid the UK VAT bill on 05/01/2024, yet the hold on our funds persists well beyond the promised 10-day release period.
3. **No Issues with US Account**: Our US account has no tax issues or any other problems. It is operating compliantly, yet it is unfairly impacted by the UK account situation.
This has significantly affected our business operations. Our funds being withheld has created cash flow challenges and hindered our ability to manage our inventory and meet customer demands.
I am seeking advice or similar experiences from other sellers who might have faced this issue. How did you resolve it? Any tips on escalating this matter effectively within Amazon?
Thank you for your time, and I look forward to any suggestions or insights you might have.
Best regards,
10 replies
Seller_eb92qxnXffpRM
We are in the same boat, brother. Earlier this month, all of a sudden, all of my funds went under account-level reservation without any notification in my USA account. I was dying to know the reason and contacted seller support many times and posted a few threads here. Finally, a seller support representative emailed me, mentioning a VAT issue with my UK account and that the funds are being held. They advised me to check my UK account notifications. Meanwhile, my UK account has been disabled since 2022, and I even forgot about that account.
I opened my old UK account and found that it stated all of my funds' disbursements of part or all of your Amazon sales proceeds remain temporarily withheld in all stores you operate worldwide. On the account health page, I clicked the button that says: 'I acknowledge that I owe Value Added Tax (VAT) to Amazon and would like to understand what repayment options I have.' Now I am waiting for Amazon to let me know how to pay. And yes, my US account and UK account entities are totally different.
Seller_eb92qxnXffpRM
As I am experiencing the same issue, could you please provide insight into how the VAT calculation was performed, given that you have already paid the VAT amount to Amazon?
Additionally, could you clarify within how many days they typically provide the VAT calculation?
I understand that the VAT rate is 20%, but is it calculated based on our total sales amount from January 2021 or on the entire sales on our UK account?
Moreover, could you please elaborate on the payment options they offer?
Seller_eiIZlf7cqGc3O
@Troy_Amazon@Jim_Amazon@Micah_Amazon@Stevie_Amazon@Atlas_Amazon
Seller_eiIZlf7cqGc3O
Hello Fellow Amazon Sellers,
I wanted to share an urgent and frustrating issue we are currently facing with our Amazon seller accounts, hoping to get some advice or insights from anyone who has experienced something similar.
We recently made a payment to settle the VAT liability for our UK account. The payment was successfully located and credited by Amazon. While we understand that the UK account remains on hold due to this situation, we find it unnecessary and unwarranted that funds on our US account are also being held.
We noticed that the US account has reserved an equivalent amount for the VAT liability payment. However, since we already transferred the VAT payment to Amazon on 05/01/2024, there is no longer any reason to reserve this money on our US account. It’s important to note that the US and UK accounts are distinct legal entities, and thus, the issues with the UK account should not impact the US account.
We have reached out to Amazon support, requesting them to release the funds on our US account immediately, as these funds are crucial for maintaining our daily business operations. The continued hold is significantly affecting our ability to manage our inventory and meet customer demands.
Has anyone else experienced this issue? If so, how did you resolve it? Any advice on escalating this matter effectively within Amazon would be greatly appreciated.
Thank you for your time, and I look forward to any suggestions or insights you might have.
Best regards,
Stevie_Amazon
Hey there @Seller_eiIZlf7cqGc3O,
First and foremost, I greatly apologize for the time it has taken to engage with you here. Your patience is appreciated!
"We recently made a payment to settle the VAT liability for our UK account. The payment was successfully located and credited by Amazon. While we understand that the UK account remains on hold due to this situation, we find it unnecessary and unwarranted that funds on our US account are also being held."
I have looked into the information you have provided and consulted with the appropriate team and it does appear that the team has sent important communication to your UK account regarding the reserve placed on your funds on 6/13/2024.
If you do not mind, please confirm that you have received this information and do not hesitate to let us know if you need further support.
All the best,
Stevie.
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