Non VAT registered UK Business sellers

This is a heads up (possibly to a minority of business sellers) concerning the authoritarian attitude taken by Amazon toward non vat registered traders. I am not vat registered, have no plans to become a vat registered and trade below the vat threshold.

A customer contacted me on Tuesday, advising me that they had been blocked by Amazon prior to placing an order for one of my products. The reason given was that I could not provide an automated (or not) vat invoice. As I cannot provide a vat invoice, I have been excluded from receiving sales feeds from customers who have ticked a few preference boxes without understanding the implications that this tick box approach has on non-VAT registered sellers.

The customer could not care less about my vat status as they will be issued with an invoice that can be used to offset a purchase for tax purposes. However, despite my deficiencies as a non-compliant business, Amazon are quite happy to offer 30 days credit to any purchaser who wishes to take advantage of a credit facility that I did not approve. Why then can’t I choose to opt out of this little perk that may, or may not affect my turnover, but which decision at least, remains firmly in my hands? Amazon, if you’re listening, any chance of that little tick box appearing on my dashboard anytime soon? NO……oh, I didn’t think so.

Be aware non vat registered business account holders, Amazon, despite taking a 20% cut of your gross sale, is doing you no favours at all. By restricting our sales, they deprive themselves of their cut (as if they needed it) and desperately needed revenue for the vendor. It would be far better if customers could select an option to purchase from non-VAT suppliers if no suitable alternative were available.

My point is a little over simplified and possibly relates only to a minority of UK business sellers . But be aware, your fall in sales may in fact have nothing to do with your products , but more to do with Amazons draconian policy to exclude you from the UK marketplace for the reasons stated, even if those reasons are of no material importance to the purchaser (unless their buying policies expressly demands that only vat registered customers can become vendors).

On a positive note, if you are in a similar frame of mind to me I would just like to know that I am not alone. However, I will now just go and find a large cooking pot and place it on my head in anticipation of the backlash that I may receive from some contributors.