I am a seller based in the UK, with my company registered and operating within the UK. I am a UK citizen, and my business is declared VAT exempt by Amazon. However, I am being incorrectly charged the Marketplace Facilitator Fee on all my orders.
For all my orders, Amazon provides the following message:
Marketplace facilitator order (legislation: UK VAT on eCommerce): Amazon is collecting VAT on this transaction. This is a marketplace facilitator order, and hence VAT is being collected and remitted to the tax authorities by Amazon. Your net proceeds will not include VAT for marketplace facilitator orders. Please visit the Tax regulations help page for additional information.
I have verified that all my products are delivered within the UK, so I don't understand why VAT is being charged on these transactions. I have been charged approximately £213 in VAT on these orders, which impacts the profitability of my business.
A few days ago, Amazon sent me an email expressing doubt about whether we are based in the UK. I opened a case with them, and they requested proofs, which I submitted. After that, they sent me an email stating
Thank you for your submission. Based on a review of your account and the information provided, we have completed our verification of your establishment for Value Added Tax (VAT) purposes.
How can we make a profit on Amazon if we are paying VAT incorrectly charged to our business?
