New UK VAT rules starting from January 1
Starting January 1, 2021, the way that UK VAT is collected on sales to customers in the UK will change under new legislation being introduced by the UK Government.
Amazon will be responsible for collecting UK VAT on the following sales of goods delivered to customers in the UK where ordered through any Amazon storefront:
- Goods delivered from inventory stored outside the UK with a parcel value of up to £135; and
- Goods delivered from inventory stored in the UK, irrespective of value, where you, the seller, are not established in the UK
Where either of these supplies take place, Amazon will calculate and collect UK VAT from the customer at checkout and remit this directly to the UK Tax Authorities. You will not receive the UK VAT amount in your disbursements and will not be required to remit these amounts to the UK Tax Authorities.
Please note that the current VAT exemption for sales of goods under £15, where goods are delivered to UK customers from inventory stored outside of the UK, will also be removed from January 1, 2021. At that point, UK VAT will be calculated and collected by Amazon on these sales irrespective of their value.
Further information regarding this change and the implications for your business, is available on the UK VAT Ecommerce Legislation help page.
48 replies
Seller_sFEUMUfeW5484
What happens for UK based seller, seller fulfilled orders, sending items to France? Will Amazon also deduct the VAT, add the VAT, make the buyer pay import duties or the seller etc etc etc…
Seller_sFEUMUfeW5484
Yes, but Amazon have said that if we sell on the DE/FR/It etc marketplaces, from Jan 1st we need to include duties etc in the prices of the product. That is currently not possible as a buyer could buy a cheap item and incur no duties, or they could buy 10 of those cheap items, which would likely attract import duties.
For some weird reason Amazon are saying the seller must pay the duties not the buyer.
Seller_xnivfaw8w4vFK
If you’re selling on FR, or DE etc and based in the UK then Amazon expects you to cover all VAT and Tariff costs (delivery duty paid). They do not want the customer to pay anymore than the purchase price seen on Amazon.
Seller_uP9LqiYV3yKFy
Amazon will not be collecting any taxes or charges for UK - EU or EU - UK orders, as they say the price on the screen will be the DDP price - delivered duties paid
The courier is the broker in this regard, all of them are set up to charge you the extra fees in the shipping cost, they will then distribute to the various countries
This is how its been setup for deal or no deal, amazon will not play a part of it
Seller_cYwDI6SmzPigZ
So if we import from outside the UK, then do we need to file those “import documentations” with amazon, or should we need to file those directly with the HMRC and get VAT refund ?
Seller_7VbclcPFFRTnc
Any news yet on whether Amazon will register in UK for vat from January so that we pay vat on our fees or will the reverse charge remain in place?
Seller_M00gWu6PyeJf5
Hi everyone. Maybe myself and my partner are both getting too old for this or we’re just thick but can someone just answer this question for us in simple terms? Nowadays, we only sell into the U.K., we are U.K. resident and our business is based and registered in the U.K. We are U.K. VAT registered. We sell via both FBA and Merchant fulfilled. Do these changes mean that as from January 1 Amazon will be collecting and paying our VAT on sales directly to HMRC or will we be still paying it ourselves as we have always done in the past? 
Thanks. Gerry and Joan.
Seller_M00gWu6PyeJf5
Hi my friend and thanks for the reply. That’s the assumption that we both eventually came to but as always we wasn’t 100% sure as despite reading it and reading it, there seemed to be some contradiction in the wording as with anything that changes with Amazon. (Last thing we wanted was to be paying VAT twice). Keep safe, merry Christmas and a happy (happier) new year to you and yours. Gerry and Joan.
Seller_AYXIEcb7yapAB
If you are living outside the UK, but deal only in FBA, do you still need to prepay the VAT upon importation into the UK and if so, what is the procedure for reclaiming it after Jan1?
Seller_Cc6pqg9egRUBB
This is actually the best news I’ve ever heard from Amazon. Now it will be a level playing field for all sellers instead of us UK sellers competing with sellers scamming the VAT system by creating multiple companies to stay below the flat rate threshold and pay only 7.5%.
This is going to be a big shock for all those sellers.
New UK VAT rules starting from January 1
Starting January 1, 2021, the way that UK VAT is collected on sales to customers in the UK will change under new legislation being introduced by the UK Government.
Amazon will be responsible for collecting UK VAT on the following sales of goods delivered to customers in the UK where ordered through any Amazon storefront:
- Goods delivered from inventory stored outside the UK with a parcel value of up to £135; and
- Goods delivered from inventory stored in the UK, irrespective of value, where you, the seller, are not established in the UK
Where either of these supplies take place, Amazon will calculate and collect UK VAT from the customer at checkout and remit this directly to the UK Tax Authorities. You will not receive the UK VAT amount in your disbursements and will not be required to remit these amounts to the UK Tax Authorities.
Please note that the current VAT exemption for sales of goods under £15, where goods are delivered to UK customers from inventory stored outside of the UK, will also be removed from January 1, 2021. At that point, UK VAT will be calculated and collected by Amazon on these sales irrespective of their value.
Further information regarding this change and the implications for your business, is available on the UK VAT Ecommerce Legislation help page.
New UK VAT rules starting from January 1
Starting January 1, 2021, the way that UK VAT is collected on sales to customers in the UK will change under new legislation being introduced by the UK Government.
Amazon will be responsible for collecting UK VAT on the following sales of goods delivered to customers in the UK where ordered through any Amazon storefront:
- Goods delivered from inventory stored outside the UK with a parcel value of up to £135; and
- Goods delivered from inventory stored in the UK, irrespective of value, where you, the seller, are not established in the UK
Where either of these supplies take place, Amazon will calculate and collect UK VAT from the customer at checkout and remit this directly to the UK Tax Authorities. You will not receive the UK VAT amount in your disbursements and will not be required to remit these amounts to the UK Tax Authorities.
Please note that the current VAT exemption for sales of goods under £15, where goods are delivered to UK customers from inventory stored outside of the UK, will also be removed from January 1, 2021. At that point, UK VAT will be calculated and collected by Amazon on these sales irrespective of their value.
Further information regarding this change and the implications for your business, is available on the UK VAT Ecommerce Legislation help page.
48 replies
48 replies
Seller_sFEUMUfeW5484
What happens for UK based seller, seller fulfilled orders, sending items to France? Will Amazon also deduct the VAT, add the VAT, make the buyer pay import duties or the seller etc etc etc…
Seller_sFEUMUfeW5484
Yes, but Amazon have said that if we sell on the DE/FR/It etc marketplaces, from Jan 1st we need to include duties etc in the prices of the product. That is currently not possible as a buyer could buy a cheap item and incur no duties, or they could buy 10 of those cheap items, which would likely attract import duties.
For some weird reason Amazon are saying the seller must pay the duties not the buyer.
Seller_xnivfaw8w4vFK
If you’re selling on FR, or DE etc and based in the UK then Amazon expects you to cover all VAT and Tariff costs (delivery duty paid). They do not want the customer to pay anymore than the purchase price seen on Amazon.
Seller_uP9LqiYV3yKFy
Amazon will not be collecting any taxes or charges for UK - EU or EU - UK orders, as they say the price on the screen will be the DDP price - delivered duties paid
The courier is the broker in this regard, all of them are set up to charge you the extra fees in the shipping cost, they will then distribute to the various countries
This is how its been setup for deal or no deal, amazon will not play a part of it
Seller_cYwDI6SmzPigZ
So if we import from outside the UK, then do we need to file those “import documentations” with amazon, or should we need to file those directly with the HMRC and get VAT refund ?
Seller_7VbclcPFFRTnc
Any news yet on whether Amazon will register in UK for vat from January so that we pay vat on our fees or will the reverse charge remain in place?
Seller_M00gWu6PyeJf5
Hi everyone. Maybe myself and my partner are both getting too old for this or we’re just thick but can someone just answer this question for us in simple terms? Nowadays, we only sell into the U.K., we are U.K. resident and our business is based and registered in the U.K. We are U.K. VAT registered. We sell via both FBA and Merchant fulfilled. Do these changes mean that as from January 1 Amazon will be collecting and paying our VAT on sales directly to HMRC or will we be still paying it ourselves as we have always done in the past? Thanks. Gerry and Joan.
Seller_M00gWu6PyeJf5
Hi my friend and thanks for the reply. That’s the assumption that we both eventually came to but as always we wasn’t 100% sure as despite reading it and reading it, there seemed to be some contradiction in the wording as with anything that changes with Amazon. (Last thing we wanted was to be paying VAT twice). Keep safe, merry Christmas and a happy (happier) new year to you and yours. Gerry and Joan.
Seller_AYXIEcb7yapAB
If you are living outside the UK, but deal only in FBA, do you still need to prepay the VAT upon importation into the UK and if so, what is the procedure for reclaiming it after Jan1?
Seller_Cc6pqg9egRUBB
This is actually the best news I’ve ever heard from Amazon. Now it will be a level playing field for all sellers instead of us UK sellers competing with sellers scamming the VAT system by creating multiple companies to stay below the flat rate threshold and pay only 7.5%.
This is going to be a big shock for all those sellers.
Seller_sFEUMUfeW5484
What happens for UK based seller, seller fulfilled orders, sending items to France? Will Amazon also deduct the VAT, add the VAT, make the buyer pay import duties or the seller etc etc etc…
Seller_sFEUMUfeW5484
What happens for UK based seller, seller fulfilled orders, sending items to France? Will Amazon also deduct the VAT, add the VAT, make the buyer pay import duties or the seller etc etc etc…
Seller_sFEUMUfeW5484
Yes, but Amazon have said that if we sell on the DE/FR/It etc marketplaces, from Jan 1st we need to include duties etc in the prices of the product. That is currently not possible as a buyer could buy a cheap item and incur no duties, or they could buy 10 of those cheap items, which would likely attract import duties.
For some weird reason Amazon are saying the seller must pay the duties not the buyer.
Seller_sFEUMUfeW5484
Yes, but Amazon have said that if we sell on the DE/FR/It etc marketplaces, from Jan 1st we need to include duties etc in the prices of the product. That is currently not possible as a buyer could buy a cheap item and incur no duties, or they could buy 10 of those cheap items, which would likely attract import duties.
For some weird reason Amazon are saying the seller must pay the duties not the buyer.
Seller_xnivfaw8w4vFK
If you’re selling on FR, or DE etc and based in the UK then Amazon expects you to cover all VAT and Tariff costs (delivery duty paid). They do not want the customer to pay anymore than the purchase price seen on Amazon.
Seller_xnivfaw8w4vFK
If you’re selling on FR, or DE etc and based in the UK then Amazon expects you to cover all VAT and Tariff costs (delivery duty paid). They do not want the customer to pay anymore than the purchase price seen on Amazon.
Seller_uP9LqiYV3yKFy
Amazon will not be collecting any taxes or charges for UK - EU or EU - UK orders, as they say the price on the screen will be the DDP price - delivered duties paid
The courier is the broker in this regard, all of them are set up to charge you the extra fees in the shipping cost, they will then distribute to the various countries
This is how its been setup for deal or no deal, amazon will not play a part of it
Seller_uP9LqiYV3yKFy
Amazon will not be collecting any taxes or charges for UK - EU or EU - UK orders, as they say the price on the screen will be the DDP price - delivered duties paid
The courier is the broker in this regard, all of them are set up to charge you the extra fees in the shipping cost, they will then distribute to the various countries
This is how its been setup for deal or no deal, amazon will not play a part of it
Seller_cYwDI6SmzPigZ
So if we import from outside the UK, then do we need to file those “import documentations” with amazon, or should we need to file those directly with the HMRC and get VAT refund ?
Seller_cYwDI6SmzPigZ
So if we import from outside the UK, then do we need to file those “import documentations” with amazon, or should we need to file those directly with the HMRC and get VAT refund ?
Seller_7VbclcPFFRTnc
Any news yet on whether Amazon will register in UK for vat from January so that we pay vat on our fees or will the reverse charge remain in place?
Seller_7VbclcPFFRTnc
Any news yet on whether Amazon will register in UK for vat from January so that we pay vat on our fees or will the reverse charge remain in place?
Seller_M00gWu6PyeJf5
Hi everyone. Maybe myself and my partner are both getting too old for this or we’re just thick but can someone just answer this question for us in simple terms? Nowadays, we only sell into the U.K., we are U.K. resident and our business is based and registered in the U.K. We are U.K. VAT registered. We sell via both FBA and Merchant fulfilled. Do these changes mean that as from January 1 Amazon will be collecting and paying our VAT on sales directly to HMRC or will we be still paying it ourselves as we have always done in the past? Thanks. Gerry and Joan.
Seller_M00gWu6PyeJf5
Hi everyone. Maybe myself and my partner are both getting too old for this or we’re just thick but can someone just answer this question for us in simple terms? Nowadays, we only sell into the U.K., we are U.K. resident and our business is based and registered in the U.K. We are U.K. VAT registered. We sell via both FBA and Merchant fulfilled. Do these changes mean that as from January 1 Amazon will be collecting and paying our VAT on sales directly to HMRC or will we be still paying it ourselves as we have always done in the past? Thanks. Gerry and Joan.
Seller_M00gWu6PyeJf5
Hi my friend and thanks for the reply. That’s the assumption that we both eventually came to but as always we wasn’t 100% sure as despite reading it and reading it, there seemed to be some contradiction in the wording as with anything that changes with Amazon. (Last thing we wanted was to be paying VAT twice). Keep safe, merry Christmas and a happy (happier) new year to you and yours. Gerry and Joan.
Seller_M00gWu6PyeJf5
Hi my friend and thanks for the reply. That’s the assumption that we both eventually came to but as always we wasn’t 100% sure as despite reading it and reading it, there seemed to be some contradiction in the wording as with anything that changes with Amazon. (Last thing we wanted was to be paying VAT twice). Keep safe, merry Christmas and a happy (happier) new year to you and yours. Gerry and Joan.
Seller_AYXIEcb7yapAB
If you are living outside the UK, but deal only in FBA, do you still need to prepay the VAT upon importation into the UK and if so, what is the procedure for reclaiming it after Jan1?
Seller_AYXIEcb7yapAB
If you are living outside the UK, but deal only in FBA, do you still need to prepay the VAT upon importation into the UK and if so, what is the procedure for reclaiming it after Jan1?
Seller_Cc6pqg9egRUBB
This is actually the best news I’ve ever heard from Amazon. Now it will be a level playing field for all sellers instead of us UK sellers competing with sellers scamming the VAT system by creating multiple companies to stay below the flat rate threshold and pay only 7.5%.
This is going to be a big shock for all those sellers.
Seller_Cc6pqg9egRUBB
This is actually the best news I’ve ever heard from Amazon. Now it will be a level playing field for all sellers instead of us UK sellers competing with sellers scamming the VAT system by creating multiple companies to stay below the flat rate threshold and pay only 7.5%.
This is going to be a big shock for all those sellers.
