Amazon started charging VAT on fees despite NETP
Hello everyone,
I am facing a severe systemic issue where my account is stuck in a "tax split" state. My business operates outside of UK/EU and has a verified NETP (Non-Established Taxable Person) status on Amazon since February 2025. Because of this, Amazon correctly acts as the "Deemed Supplier" on my sales, automatically deducting and remitting 20% Marketplace Facilitator VAT from my customer orders directly to HMRC.
However, starting in March 2026, Amazon's billing system began charging me 20% UK VAT on my FBA Storage and Fulfillment fees. This is a direct legal contradiction: the sales engine treats me as an NETP (Non-Established), while the fee engine treats me as UK-Established. Under HMRC rules, because my primary operating address and human resources are outside the UK, all of my B2B service fees should fall under the Reverse Charge mechanism at 0% VAT, exactly as my PPC and Referral fees currently do.
Seller Support keeps sending automated copy-paste replies regarding my UK company incorporation, completely ignoring my verified Primary Operating Address and the fact that Amazon is already pulling VAT from my sales as an NETP. Has anyone successfully resolved this specific glitch where the fee engine desynchronizes from a verified NETP status? I would deeply appreciate any advice or an escalation from a Forum Moderator.
Amazon started charging VAT on fees despite NETP
Hello everyone,
I am facing a severe systemic issue where my account is stuck in a "tax split" state. My business operates outside of UK/EU and has a verified NETP (Non-Established Taxable Person) status on Amazon since February 2025. Because of this, Amazon correctly acts as the "Deemed Supplier" on my sales, automatically deducting and remitting 20% Marketplace Facilitator VAT from my customer orders directly to HMRC.
However, starting in March 2026, Amazon's billing system began charging me 20% UK VAT on my FBA Storage and Fulfillment fees. This is a direct legal contradiction: the sales engine treats me as an NETP (Non-Established), while the fee engine treats me as UK-Established. Under HMRC rules, because my primary operating address and human resources are outside the UK, all of my B2B service fees should fall under the Reverse Charge mechanism at 0% VAT, exactly as my PPC and Referral fees currently do.
Seller Support keeps sending automated copy-paste replies regarding my UK company incorporation, completely ignoring my verified Primary Operating Address and the fact that Amazon is already pulling VAT from my sales as an NETP. Has anyone successfully resolved this specific glitch where the fee engine desynchronizes from a verified NETP status? I would deeply appreciate any advice or an escalation from a Forum Moderator.
2 replies
Seller_76AUwmqvSyRIM
As far as my understanding goes for NETPs, you do pay VAT on Amazon’s UK-issued invoices, so I believe that Amazon are correct. But you should really get professional advice as VAT can be very complicated.
Yujiro_Amazon
Hello @Seller_YejU1YtpfcSv7,
Thank you for the detailed post. VAT treatment on service fees can differ from VAT treatment on marketplace sales, and the application depends on several factors including your business establishment status and how your account is configured. We would not be able to confirm or advise on the correct VAT treatment here as this is best reviewed by a tax professional familiar with HMRC rules for NETPs.
If you believe your account's tax configuration is incorrect, please open a new case with Seller Support specifically requesting a review of the VAT settings applied to your FBA fee invoices. Reference your verified NETP status and the change you noticed in March 2026.
Best regards,
Yujiro
