Chinese VAT fraud
So i’ve been checking out a bit of my competition today on the Amazon UK store front - several chinese sellers that are using FBA. All selling the same items.
I’ve read a few times on these forums about VAT fraud so i thought i’d check a few out and sure enough, the first four sellers i’ve come across shows that the VAT ID is not valid when you enter them into the UK Vat registration checker
Is it worth reporting them to Amazon - do they do anything, if so how do i report? or is it worth going straight to HMRC?
46 replies
Seller_5xogxoILPrN4X
If its a Chinese seller then Amazon wont do anything, so best report straight to HMRC
Seller_vIpv9uvBH6CFY
I would contact both Amazon and HMRC, but it is quite odd that they could get through with fake numbers. Have you double checked VIES to make sure?
Seller_IGI0wifpU64da
Good luck, as usual amazon will do nothing. I’ve reported dissolved companies still trading before to amazon and they did nothing.
Seller_q1RavrGIuxu3w
I bought a rear cycle bag on the eBay, my search terms are UK only. Found the bag I wanted advert said UK STOCK. Bought said bag from the company supposedly in Leicestershire and owned by Peter, it arrived 6 days later with a customs label stating (commercial sample value 1.50$ ) and a return address in Southall !! I phoned eBay to complain and they said they checked and the seller was based in Hong-Kong and would investigate.
Its one gigantic fraud committed by Chinese sellers abetted by eBay and Amazon costing Uk jobs, ripping off our postal service and avoiding import and Vat taxes which means we all have to pay the tax shortfall
Seller_W8OEhqsf8fi05
there was a bbc program , about this fraud. its vat and duty free straight into fba
Seller_TH9DATW06Doc2
The biggest fraud that affects me directly as a consumer, not as a seller is the dishonest displaying of sellers shipping times from China. You buy an item assuming being amazon you’ll get it quick enough then realise delivery times are 1 month. It’s awkward to cancel if it’s been shipped but I have done this in the past and It’s happened to me 3-4 times now. Yes there’s demand for the items but make it clear where it’s coming from to manage the customers expectations. I think a big clear indicator of the source of the item is required for transparency.
Seller_bhSWqoVh7Pn98
Report to HMRC
Report to Amazon (although unlikely to take action UNLESS you are a Buyer from them)
By law, ALL Chinese Sellers MUST give a UK returns address (if buying on the .co.uk website), so then just return to them. If FBA, that will be Amazon’s address.
BUT, if you order from China if they offer that option as well, then if they do not have a UK address (can be an agent, as some have), then they either have to pay for the item to go back to China (pre-paid postage), or just refund you. (even if just unwanted). Most refund as it costs too much to return if they do not have a UK address/agent.
Seller_LGJVYEnsBVTiN
i dont think amazon will verify the account if the vat number does not exist.
Seller_YPcHTm0I7Zd5o
If you look at Chinese fba sellers you will find that many have multiple fba accounts.
As they have to pay UK vat I wonder if that’s because you can pay 7.75% of turnover up to £250000 on the flat rate scheme rather than apply normal rates
In some cases there are up to five fba usernames being operated by same sellers
Seller_xUKHc5xSYJmI4
I wonder if the same applies to private traders in the UK who do not show their trading information but sell new products online.Naturally it is difficult to compete with them because they do not have the overheads business sellers have.
