VAT for UK based company
Hello Everyone,
We are UK based company with Annual turn over less than 50,000 GBP do we need to register for VAT. We got email from Amazon to place the VAT number and start VAT invoice.
As per the rules, our Turn over is less than 85,000 Pound we don’t need to register for VAT. As a UK company, we can store inventory in the UK. Does any one have an idea about the same.
Thanks
0 replies
Seller_fcCE9oIHSHQr9
I have got the same email for my limited company and we don’t cross the annual turnover either. Funny enough I went and tried to register for VAT and the HMRC website had a technical error lol, so I couldn’t do it. I am not sure what to do yet…
Seller_zbbK8Mjvimn1O
Hi,
No you don’t if your turnover is below the threshold. Sometimes Amazon sends out automated e-mails I am guessing those e-mails are automated about VAT calculation service etc. We used to get them too.
You can ignore them till you cross the threshold.
Seller_fcCE9oIHSHQr9
I hope you are right Tom. The email said that if I don’t upload the VAT id in 55 days, that my account will be blocked. I also asked Seller Support and they told me that all limited companies need to register for VAT but I think I am just going to wait and see what happens.
Seller_UKL88KISUkwg2
hi I got the same before xmas
you have to send them your personnel number you got from tax when you registered as a sole trader
Seller_r7SzViEUCuDPM
@ OP, As you’ve registered your company in the name of your UK accountant ( how did Amazon accept that one!) I’m going to guess you’re a NETP and need to register for VAT as instructed.
Seller_nJqs0T8gkrQn0
If you follow the Instructions they have given you to add your VAT nr, there is another option which you need to select which says No I am not registered for VAT. This then updates your account and will stop the frequent emails
Seller_THte9Ti6D9kqC
You do NOT have to register unless yourn turnover is £85,000+, but you can register voluntarily.
Why would anyone sensibly register for VAT voluntarily? no idea. You’re going to be taxed twice - VAT first and then Corporation Tax. You can certainly reclaim VAT on some of your purchases but still you’re going to be worst off.
Seller_QlN0mmCAFPtjZ
Amazon may be applying a different rule to what HMRC requires . As governments move towards holding the platform liable for non complaint sellers , the platforms , in this case Amazon are using a bigger stick than required to avoid any penalties
