VAT on a order sent to UK from Australia
I sell from Australia and have sent my first order to the UK. I have been charged VAT on the item and the freight. If I am not from the UK do i have to register for VAT in the UK or is there a way where I do not need to pay the VAT?
Thanks for any help as this is first time selling on Amazon
1 reply
Seller_IC5dxZRZpcM4T
Hi and welcome.
This is a loophole that Amazon closed not too long ago that gave non UK sellers an advantage in pricing over UK vat registered sellers. Now Amazon deduct the VAT and hand it over to the HMRC (Taxman) directly.
To properly account for the VAT in the UK as a non UK seller you must be registered with the HMRC and have a vat number. Please google "VATREG37150 - Non-established taxable persons (NETPs): what is an NETP?". Amazon will request this number from you if they haven't already otherwise they will suspend your account in the UK.
For more info I recommend searching NETP on Amazon and reading up on other forum posts.
Good luck, and remember dont start a price war by constantly trying to be a penny cheaper.