Amazon charging us VAT NOT the customers
Has anyone else noticed that Amazon do not charge the customers VAT for EU sales? They simply deduct the VAT from YOUR takings.
This is wrong and I am wondering if this is why customers are being asked to pay VAT on delivery?
123 replies
Seller_G8eWP7YqaJU36
I’ve had a case like this recently.
We are not VAT registered and the product in any case is exempt from VAT, but when we sent an order placed on Amazon UK to a customer in Germany, Amazon deducted VAT from our selling price and added the German VAT to the price.
This would be correct if the seller was VAT registered, but wrong where they are not. I’ve raised a case with seller support, but all they keep replying with is that sales to the EU must include VAT. Of course we can’t legally charge VAT in the UK, when we are not VAT registered, but I can’t seem to get this simple point through to seller support.
I’ve had to suspend sales from Amazon UK to EU countries, although I also sell on Amazon Germany, so EU customers are directed there to order.
Seller_qZO3ZCjoBXEeL
Your EU prices need to be VAT inclusive. Prices displayed to customers must be inclusive of all taxes…
Customers being asked to pay on delivery is either customs not being ready to handle it (eg Germany) or parcels being shipped/documented improperly.
Seller_ATuN59NWPkObT
This is why I turned off selling to the EU.
Seller_oVsfJc6l5Oydw
Yes I have noticed this and a very sneaky way of operating as you have to notice that your gross sale price has been reduced by Amazon on your payment statement. It looks at first as if the VAT is on both sides of the equation. Other platforms do it correctly and print the IOSS number on their shipping label - but Amazon are forcing sellers of zero rated products (books) to pay the customers’ European VAT. I think like others I will be suspending shipments to Europe.
Seller_NoMNQDGnEW5Bx
Remember also that not everything that is vat exempt here is the same in the EU, like books for example
Seller_Yjq4AEoa0h74s
Also, don’t forget that Amazon are not particularly good at figuring out when taxes should and shouldn’t be paid, so you sort of need to be on top of it yourself.
Seller_MT8rt0A2OpbCx
It’s not VAT exempt, its zero rated, there is a difference, zero rates sales still go on the VAT return, exempt do not. Exempt things would be insurance, bank charges, postage stamps, etc. All goods that I can think of are standard, reduced or zero rated.
Seller_wTHljQM7X9Fnj
Amazon is correct. The law has changed post Brexit. You should have received information by HRMC . .https://www.gov.uk/government/publications/eu-e-commerce-package/eu-vat-e-commerce-package
Seller_zbTTZ30X6MZQe
EU Customers should not be disadvantaged by paying VAT twice. Therefore if you are VAT registered on Amazon and you Export to the EU then quite rightly Amazon deducts your VAT (which is a UK tax) from the sale which is not a UK sale. Then when the goods enter the Buyers country, they have to pay their own Countries tax on the amount. Failing that you would be charging all buyers outside the UK a 20% premium and they would still have to pay tax on entry into their country plus tax on the premium.
If you are not VAT registered on Amazon or indeed in the UK, you should not have 20% deducted from you sale to EU Country.
