Amazon charging me VAT

Hi all,

I recently noticed Amazon have been charging me VAT. I thought being a limited company under 85,000 I was exempt. So I emailed seller support of which they came back and asked for proof which meets the criteria. One of the criteria being a sole trader.

I am a limited company and thought this did not effect VAT under £85,000. What’s everyone’s thoughts on this? What are ways around this?

Simply ……

If you are not vat registered, you must pay vat on goods and services.

If you are vat registered, you still pay vat on goods and services purchased in the uk but you can can claim it back from hmrc.

If you are vat registered, Amazon won’t charge vat on fees as they are based in Luxembourg.

If you are not vat registered, you can declare your vat exemption to Amazon so that they don’t charge you vat on fees (except advertising) but be aware of other rules surrounding this. This is where your accountant comes in.


Thank you for the quick reply, I am going to speak to my accountant soon.

1 Like

Amazon wrongly charge vat on referral fees, FBA fees and storage charges. If you can show you are a company you can claim this back. Basically any of their inboxes that come from Luxembourg. There is even a dedicated path through seller support for this issue. Go through the categories in help and it is under tax I think. Called something like ‘claim vat refund on seller fees’