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orders are coming through with VAT
We are a UK based company selling into UK and Northern Ireland.
99% of our products are VAT exempt due to the items used and for people with visual impairment or blind.
Why when orders come through are Amazon charging us VAT?
2 replies
Seller_QuM1AZgzfU9x4
Charging VAT on the items or on the fees?
Roberto_Amazon
Hello! @Seller_MrMNJpXwm4n3A
This is Roberto. Thank you for using the Forums.
Have you consulted with an accountant or tax advisor on this matter?
It is our understanding that changes went into effect on August 1, 2024. The information below appears to fit your situation:
As of August 1, 2024, all Selling on Amazon, Fulfilment by Amazon and other services previously provided by Amazon Services Europe S.à r.l. (ASE) are supplied by Amazon EU S.à r.l. (AEU). If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden, you will be invoiced by the AEU branch in your country of establishment. As invoices are no longer issued from ASE in Luxembourg, B2B reverse charges will no longer apply if your company is established in a country where AEU has a branch. If your company is established in the UK and is recognised as a taxable person by applying for the VAT exemption programme, you will also be invoiced from your local AEU branch and charged UK VAT on fees where applicable.
Due to these updates, Amazon is pausing the acceptance of any new applications for the VAT exemption programme until further notice. Please be aware that applying for this programme will no longer allow you to receive invoices with 0% VAT on your Amazon seller fees going forward if you are established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden.
For more information, please see "Change in selling services provider entity and seller tax treatment FAQ".
Let me know if you have further questions on this matter, and I will be happy to pursue further guidance on this.
Regards,
Roberto
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