I'm a seller established in Hungary, and I informed Amazon about this one month ago. I'm ready to settle my past VAT dues if there are any and have been requesting the total amount for payment. Unfortunately, I haven't received a response to my emails or my application on the Amazon Seller Central health banner. I have sent proof of all the VAT payments maybe for each month and still no response.

The only response I'm getting is an automated message stating that Amazon is working on it and that I should wait. This delay has also placed my disbursements on hold and I can't do regular business as I used to nor make necessary payments that I have each month.

I would appreciate it if someone from Amazon could expedite this process. Please let me know the total VAT amount due so I can make the payment and get my disbursements flowing again.

Thank you for your time and assistance.

Hello everyone,

I’m facing a challenging VAT issue and could really use some expert advice or recommendations for a VAT specialist.

My company has been VAT registered in the UK since 2021 under the flat rate scheme, and I have been regularly paying VAT to HMRC. Recently, Amazon classified my company as "non-UK established" and is now asking me to pay VAT again from 2021 at the standard 20% rate. I have agreed to pay this liability in installments to Amazon.

The problem is, this creates a potential overlap, as I’ve already paid VAT to HMRC under the flat rate scheme. I need guidance on how to obtain a refund for the VAT that has already been paid to HMRC. Unfortunately, my current accountant is not familiar with resolving such issues, and I’m looking for a VAT expert who can help me navigate this situation.

Can anyone recommend a reliable VAT consultant or firm experienced in e-commerce and handling disputes between VAT paid to HMRC and marketplace platforms like Amazon?

Thanks in advance!

Hello all,

Need Help to address below issue i got below email from amzon

Hello,

The disbursements of part or all your Amazon sales proceeds have been temporarily withheld in all stores you operate worldwide (excluding Amazon.in) until we agree upon how the UK VAT owed on your sales will be paid to Amazon. Additionally, your Fulfilment by Amazon (FBA) inventory may be temporarily blocked from removal, unless the funds withheld exceed your estimated liability. As a result, within 10 days, Amazon will begin to collect and remit VAT taxes on your future sales for goods delivered to UK customers.

Our preliminary assessment shows that Amazon is required to account for GBP 18886.47 VAT on your sales to UK customers to date. Please, note that this is preliminary VAT liability only and that we will inform you of your final assessment of VAT liability within 3 weeks of this notification. It may differ from the preliminary assessment above depending on the sales you make to customers in the UK during this period. Any differential between this preliminary assessment and final VAT liability will be directly reflected in your Seller Central account accordingly within 10 days of receiving the final liability.

You can continue selling on Amazon, but your Amazon sales proceeds will be temporarily ineligible for disbursement and any FBA inventory blocked from removal from this account, and any related accounts, until we agree upon how the UK VAT owed on your sales is paid to Amazon.

Why did this happen?

We must collect and remit VAT from non-UK established Selling Partners for the sales of goods delivered to customers in the UK. Based on a review of your account, we determined that you may not be UK established for VAT purposes under the VAT on eCommerce legislation (effective 1 January 2021 in UK). We leveraged a combination of automated means and expert human review to identify this issue and make this decision.

What actions do I need to take?

To address your preliminary VAT liability, email us at mdri-exec-escalations@amazon.co.uk from your Amazon Seller Central registered email address stating that you are willing to pay back the VAT owed to Amazon. We will reply within 48 hours with available payment options for the VAT due.

After the VAT due is paid back to Amazon, the disbursement of your Amazon sales proceeds will be released within 7 days, and will become available to you according to your normal payment cycle. Additionally, if your Fulfilment by Amazon (FBA) inventory was held, it will be available for removal within 48 hours.

How did Amazon determine the VAT due on my account?

Your VAT liability is based on the sales you have made to customers in the UK since 1 January 2021, for which VAT was not previously collected by Amazon.

What happens if I don’t take the required actions?

If you don’t follow the instructions above to get your disbursements released and do not pay historical VAT liability owed to Amazon, your disbursements will remain temporarily withheld. You may continue selling on Amazon, but your Amazon sales proceeds will remain temporarily ineligible for disbursement and any FBA inventory blocked from removal from your account(s), until VAT owed is paid to Amazon.

What if I already paid this VAT to the tax authorities?

The UK VAT on eCommerce legislation requires Amazon to collect and remit VAT to tax authorities on behalf of all sellers that are not established in the UK. In accordance with this legislation, Amazon will remit the VAT to UK tax authorities directly and recover this VAT amount from you. If you already paid your VAT for this period directly to UK tax authorities, you can work with your current tax advisor to re-claim this back from the appropriate tax authorities.

We’re here to help.

For further information, go to the “UK VOEC: Determination of Establishment"" page: https://sellercentral.amazon.co.uk/gc/vat-education/voec-uk-establishment?ref=DR_pnotif_ukhp

If you have additional questions, click the 'Contact Us' button on your Account Health page: https://sellercentral-europe.amazon.com/performance/dashboard?ref=DR_pnotif_ahd-cus to speak to an Account Health Specialist.

Sincerely,

Amazon Services Europe"

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