I’m reaching out from an Irish business that sells on Amazon.co.uk. We’re utilizing the Amazon UK VAT facilitator for our orders, but we’ve encountered irregularities where VAT isn’t always being captured, evidenced by a 0% VAT rate on certain order reports. This issue is perplexing, as we can’t discern any pattern or reason behind these inconsistencies, complicating our financial reconciliations due to the resultant uncollected VAT on several orders.

Could you provide any insights or suggest any settings that might ensure VAT is consistently applied to all our sales? We’re eager to rectify this to ensure accurate financial reporting.

Thank you for your assistance.

Hello fellow sellers,

We’ve been facing a significant issue with VAT charges on Amazon UK for the past two years, and we’re hoping to get some insights or advice from this community. Despite our persistent efforts to resolve the problem, it seems Amazon support is not addressing the issue effectively.

Since we started selling on Amazon UK, our products have been incorrectly charged 20% VAT. According to both Amazon’s own guidelines and HMRC regulations, our products should be zero-rated for VAT. However, we continue to face this issue across multiple listings.

Every product we list gets a 20% VAT applied, despite qualifying for zero VAT according to UK tax laws. This incorrect VAT charge has significantly affected our pricing strategy and profitability, as we are unable to pass these unnecessary costs onto our customers. We've contacted Amazon Seller Support numerous times, providing detailed explanations and references to relevant HMRC guidelines, but the issue remains unresolved.

Amazon's guidelines state that sellers are responsible for ensuring that the correct VAT rate is applied to their products. Amazon provides functionality for setting VAT rates, but it seems there might be a systemic issue preventing correct application in our case. According to HMRC, certain products are zero-rated for VAT purposes. For instance, “food items for human consumption” generally fall under this category unless they are considered confectionery, alcoholic beverages, or other specific exceptions. Our tax advisors have confirmed that our products should indeed be zero-rated, aligning with both HMRC guidelines and standard industry practices.

We’ve submitted extensive documentation and references to Amazon support, highlighting the applicable HMRC regulations that justify our products being zero-rated. Despite our efforts, the response has been slow and largely unhelpful, often resulting in generic replies without any substantive progress.

We are reaching out to the community for advice. Has anyone else faced similar issues with VAT misapplication on Amazon UK? How did you resolve it? Are there any effective ways to escalate this issue within Amazon to get a more responsive and informed resolution? Would it be advisable to engage a legal professional or a specific consultant who has successfully navigated such issues with Amazon?

Any help, insights, or suggestions from the community would be greatly appreciated.

Thank you for your time and assistance!

Best regards,

Hello,

I am reaching out to the community for assistance as we are currently facing an issue with our Amazon seller account. Our account has been blocked, but after providing updated information, Amazon support verified our VAT numbers and confirmed that everything is in order. We settle on the basis of VAT OSS PL, we also presented the returns of the settlements for 2024 to the relevant VAT departments via e-mail.

Despite this, 3 days have passed, and our account remains blocked with no updates or progress on the situation.

Has anyone experienced a similar issue, or can anyone provide guidance on how to resolve this?

@Seller_ZyGdB49sb7An4@Seller_Udi0JNbTrsmUV

Any help or advice would be greatly appreciated.

Thank you in advance!