20% VAT on PPC despite of VAT exemption
HI, I started selling on amazon in March 21, As i have limited company in UK, So legally in am VAT exempted on every purchase/sale/services etc till threshold of annual sales of 85K GBP.
In start, amazon was charging me 20% VAT on my every sales till I declared VAT exemption with amazon on same basis. But amazon is still charging me 20% VAT on PPC, when I opened case with amazon regarding this, they took around a week and has replied:
"Hello from Amazon Advertiser Support,
We understand your concern with regard to VAT charges.
We regret to inform that we do not have any information regarding the same as it is beyond our scope.
Since we do not the reason behind VAT charges, we request you to contact your Tax Advisor for guidance as your tax advisor will be able to help you recover the VAT charges paid from the Tax authorities.
We appreciate your understanding in this regard.
Have a good day.
…"
what shall i do? PPC is costing like a bomb on this
Seller_7VbclcPFFRTnc
You are purchasing advertising
17 replies
Seller_esvgLzKXw2YAl
I think your misunderstanding things.
Nobody has vat exemption!
You might not have to register for vat, but you have to pay it!
And just to add to the above, I have no idea what your talking about, getting Amazon not to charge you vat by getting an exemption. But if you are and your not vat registered, you are literally breaking the law. You have to pay the vat.
However, if you are actually registered for VAT, then there is no exemption, but the vat you would normally pay on fees, is put through the reverse charge scheme. But!!! Fees charged on advertising do not go through this scheme and as such, you pay the vat on them, then claim it back on your vat return.
Seller_64jziShTiTjOq
If you and your company are UK-based, you are not exempt from paying VAT on your purchases etc. You are simply exempt from being required to register for VAT, although you can do so voluntarily, but you cannot charge VAT on your sales unless you are registered
You need to take the advice Amazon gave you: talk to your tax advisor or an accountant who knows about VAT and can explain it to you
Seller_RWuUC38sCSGXc
Yes - you are right. Vat is charged on purchases… and not being charged on sold products… so amazon should not charge VAT if we are VAT exempt.
Seller_7VbclcPFFRTnc
You are purchasing advertising
Seller_RWuUC38sCSGXc
Makes sense. That clarifies. Thanks alot
Seller_64jziShTiTjOq
You are NOT VAT exempt, ie exempt from paying VAT - there is no such thing for people or businesses. You may be exempt from registration for VAT but you would still have to pay VAT even if you were registered
I repeat, you need to talk to someone who can explain how VAT works, as you clearly don’t understand it
And Neil is right. You ain’t getting any more help if you won’t listen
Seller_7VbclcPFFRTnc
Then uk law states if you are not living here but store stock here you need to register - there is no 85k threshold - even for ltd companies
Seller_ejwc84JNL5Uk6
If you are not a UK resident then you MUST LEGALLY be Uk vat registered.
And don’t be rude and arrogant with helpful experienced people on here!!
Who the heck is your tax advisor as you need a new one.
Seller_7VbclcPFFRTnc
You may have a UK ltd company but do you live in UK ?
Seller_64jziShTiTjOq
If
- you do not live in the UK
AND 2. you do not have your own business premises in the UK (somewhere that could accept your business supplies if necessary, so not just an Amazon warehouse or a company registration agency)
AND 3. you store or want to store goods in the UK
you MUST register for VAT, whatever your turnover - the £85,000 limit does not apply to you. And you need to register for VAT before you open an Amazon account and before you send any goods to the UK
Seller_RWuUC38sCSGXc
Thank you guys for help @NEil sorry for my behavior as well.
