Hello, I’m seeking some clarity regarding VAT charges on my Amazon seller account. My business is registered with HMRC, but I have not crossed the current VAT threshold, so I am not required to file VAT returns or register for VAT.
However, I have noticed that Amazon is still charging me 20% VAT on referral fees & FBA services. Is this valid, given that I am not VAT registered?
If so, I’m confused about the purpose of the VAT threshold provided by HMRC.
Can someone explain why this is happening & how it aligns with the VAT threshold rules?
Thanks in advance for any insights!