[UK] Are you being charged VAT on seller fee’s? (Regardless of your VAT registered status)
Hi guys
I’m reading and being told conflicting information in regards to this, so would be good to hear first hand experience from sellers.
My accountant along with other information sources online such as this guide (https://linkmybooks.com/blog/vat-refund-on-amazon-seller-fees) all state that we should not be charged VAT by Amazon on our selling fee’s (Regardless of our VAT registered status) .
They state..
“If you are an Amazon seller and a registered business, for example a limited company,
you will be charged VAT by default on your seller fees. However, if you are a registered
business – regardless of VAT registration – these should not be levied against you and
you will be entitled to a VAT refund on these fees.”
“Regardless of whether or not you are VAT registered, many sellers are incorrectly
charged VAT fees against seller fees, luckily it is possible to stop these occurring and get
a VAT refund on these”
“Amazon usually charges VAT on all of their fees until you can prove that you are a business entity. This is to do with EU VAT regulation. Once you provide Amazon with your VAT number they typically stop charging you VAT on your fees and instead reverse charge the VAT on them.”
“Therefore, if you can prove you are a business or sole trader then they should not charge you VAT.”
However Amazon seller support are saying
“You can be made VAT Exempt on your fees, if as per policy you meet the following criteria:
– U.K based Seller
– Registered as a Sole Trader
– You are under the threshold of £85,000″
Are SS correct in saying that we are only exempt from being charged VAT on seller fees if we are a sole trader and under the £85k threshold?
submitted by /u/Lorenzo0927
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