VAT on Seller Fees (Non-VAT Registered)

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Seller_HxgcObseSqKiG

VAT on Seller Fees (Non-VAT Registered)

Hi guys,

I’ve been charged 20% on all Amazon fees since I started even though I’m pretty sure I selected non-VAT registered business when I created my Pro. Account. I checked these forums and came across a few topics that said it was normal for non-VAT registered sellers to be charged the VAT so I left it alone.

In the last week I did some further digging and according to Amazon’s own policy, I was incorrectly charged so I contacted support and told them to make me exempt, which they did (waiting for refunds). I had previously contacted support to clarify why I was being charged VAT on fees but they gave some template answer asking me to supply my VAT number for them to make me exempt, which implied that only those with a VAT number would be exempt. They only changed my settings when I quoted their own VAT policy which clearly said I should not be paying the VAT on my seller fees.

My question is why does Amazon incorrectly charge these VAT fees when they know exactly how my registered Business is set-up (via the info I supplied when creating the Pro. plan) ? Makes me wonder how many of us are incorrectly paying the VAT on our fees…

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38 replies
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Seller_7VbclcPFFRTnc

Because in general , if you are not vat registered, you pay vat on all seller fees and only do not pay them if you are vat registered. Just as you still pay vat on your purchases of stock, packaging, postage etc

VAT registered sellers process the vat on amazon seller fees as reverse charge

Amazon have it in their business agreement that if you are a UK based non vat registered seller, you can claim ‘exemption’ on paying the vat on amazon fees as they are not based in the UK themselves however, you have to request this

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Seller_7VbclcPFFRTnc

Out of interest

Where did you find this on their current policy and

How will you treat this in your accounts ?

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Seller_CUs6cobAjKDF7

I am not VAT registered either - I just assumed you had to pay the VAT regardless anyway. Is there any way round this? Or is the change just stopping this?

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