Changing from sole trader to limited company
Hi, i want to change my account from sole trader to limited company. I created a company and i managed to get a business bank account, but i have not created a case for the change over. I have an ongoing case with Amazon regarding VAT refund for incorrect VAT charges as i am not VAT registered, I opened that case a week ago, however amazon has yet to come to a resolution. Should i go ahead with changing my account to limited company or should i wait for a resolution with amazon regarding my VAT refund as i dont want to create any further issues.
Please any advice would be greatly appreciated.
0 replies
Seller_DROodOAYHftnc
Have you researched and checked out the implications of having a limited company ?
Seller_NoMNQDGnEW5Bx
If you change over i suspect you won’t get your refund because the money won’t be owed to the limited company and your bank details will be for the company too so it’s probably too messy
Seller_qs0SIvVwguCY5
I’m not sure if this makes sense.
You do not have to be VAT registered to pay VAT on services. It’s the other way round. Amazon are VAT registered and so have to collect VAT from you for services you pay for.
My understanding is that if you are not VAT registered you pay VAT to Amazon for services, but if you are VAT registered you don’t, since the reverse charge mechanism applies and you report this accordingly in your VAT returns.
I’m sure somebody who is more certain than me will be able to comment and confirm or debunk what I’ve said
