Hey everyone, @Simon_Amazon, @Spencer_Amazon

I’m hoping to get some advice on a VAT issue we’re having with our Amazon UK account. Our company is recognized by HMRC and Amazon as a Non-Established Taxable Person (NETP), which means we shouldn’t be charged UK VAT on services like advertising. But here’s what’s happening:

Our Situation:

Amazon has recognized our NETP status and deducted all VAT we collected from sales for the years 2021-2023 from our balance. Now, Amazon collects and remits VAT to HMRC on our behalf. However, they continue to charge us VAT on advertising services, which contradicts our NETP status.

During a tax audit, HMRC confirmed that, as a NETP (Non-Established Taxable Person), we shouldn’t be charged UK VAT on the supply of services, including advertising. Since we’re not in the UK, UK VAT shouldn’t apply to us.

We have repeatedly contacted Amazon support, requesting them to stop charging VAT on advertising services. We’ve provided Amazon with all the documentation from HMRC supporting our NETP status. Although our company is registered in the UK, we have no physical presence there other than this registration. Hence, under HMRC guidelines, we are considered a NETP. Amazon, however, insists that VAT charges are valid based on our UK marketplace address. They argue that because our business address is registered in the UK marketplace, VAT is applicable.

This creates a discrepancy: for VAT on sales, Amazon treats us as NETP, but for VAT on advertising services, they do not recognize our status.

We’re stuck and could really use some help. This situation poses a threat to our business.

Does anyone have any advice on how we can resolve this issue with Amazon? Has anyone faced a similar situation and found a successful solution?

Thanks in advance!