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NETP (Non Established Taxable Person) UNPAID VAT
Hello Sellers,
According to the notification sent by Amazon a few days ago, my LTD company established in the UK stated that there will be no VAT exemption up to 85,000 GBP because it is understood as NETP (Non-Established Taxable Person).
In the 2.5 years since I started selling, Amazon has accepted my VAT exemption and has not collected VAT from sales. But now they say that this situation contains a mistake.
Now it tells them to inform them within 30 days whether I am UK established and if I am not, I will be required to pay the unpaid VAT for all sales made since January 1, 2021 and my disbursements and inventory will be blocked until it is paid.
According to this account, it is said that I have to pay back 20% VAT of my past sales to Amazon in one lump sum. (Which is A lot of money)
In addition, I have always paid 20% VAT for stock purchases I have made so far and I have not received it back.
No such warning has been made so far, and at the same time, it does not seem fair for Amazon to take such action after the e-mail stating that Amazon has accepted the VAT exemption.
If there are sellers in this situation and whose account is in danger, please meet in this forum and share their experiences.
Thanks..
4 replies
Seller_ZVAz3d5lZuGid
Are you actually a UK resident, or is it just your business that you have established in UK ?
If you are a non-UK resident but store your items here in UK for FBA, then the £85,000 exemption does NOT apply, it is ONLY for UK residents, and you MUST be VAT registered here.
Many of us earlier in the year, even established UK residents, had to go through the process of proving our establishment, which was a lengthy process, but the bottom line is that if you do not live in UK but store goods here then you have to be VAT registered.
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