Amazon charging me VAT

[DouglasStafford]

Hi guys,

I think I am being charged VAT by Amazon. I purposely earn under 85k as a sole trader.

Can I get this cancelled and refunded?

[Muhammad]

VAT on fees are now obligatory, so you can’t get them refunded but you shouldn’t be issuing customers with a VAT invoice and shouldn’t be charging VAT to customers either so make sure your invoicing is correct.

[AmazonUKForumRefugee]

@DouglasStafford

I think I am being charged VAT by Amazon

The same way you get charged VAT on goods and services you buy elsewhere in the UK. The 85K (now 90K) is irrelevant.

[romel]

If you’re not VAT registered and staying under the 85k threshold, Amazon shouldn’t charge you VAT on fees. Just double-check your VAT info in account settings - if there’s a number added by mistake, remove it. Then contact support and ask for a refund for any VAT they’ve taken. They usually sort it if it’s an error.

[masud530]

Where are you based?

[DouglasStafford]

UK.

[Dennis]

Yes, this is right, Amazon charge VAT on fees now. The change happened before Q4 last year.

[AmazonUKForumRefugee]

@romel

If you’re not VAT registered and staying under the 85k threshold, Amazon shouldn’t charge you VAT on fees. Just double-check your VAT info in account settings - if there’s a number added by mistake, remove it. Then contact support and ask for a refund for any VAT they’ve taken. They usually sort it if it’s an error.

Sorry @romel , you are incorrect. Since August 24, Amazon have charged fees from their UK office and VAT is included. If not VAT-registered, the seller can’t reclaim the VAT and there i no way to avoid it.

[ronyal]

I think this is the Amazon Europe VAT on Fees Update August 2024:

Update to Amazon UK and EU agreements and VAT treatment now effective

Announcement reposted from Amazon Europe: As previously communicated, effective August 1, 2024, Selling on Amazon, Fulfilment by Amazon, and all other services previously supplied by Amazon Services Europe S.à r.l. (“ASE”) will be supplied by Amazon EU S.à r.l. (“AEU”). All agreements, policies, terms and conditions that previously referred to ASE, including Amazon Payments agreements, will now refer to AEU. Please consider any reference to ASE as a reference to AEU. Additionally, all invoices…

[cosmovici]

Everyone pays VAT with Amazon now, if you are not VAT registered, you can’t claim it back. There is no exemption as it used to be.

[romel]

So, in the UK if you are VAT registered, can you claim it? 85k threshold is must or not?

[cosmovici]

Threshold moved to 90k by the way.

[romel]

Thanks!

[Laszlo]

I’m VAT registered but not turning over £90,000 now.

[ronyal]

That’s fine - you can still reclaim VAT and stay compliant.

[DouglasStafford]

I’m getting charged 20% by Amazon per sale, l’m not vat registered.

[Muhammad]

If on fees, then yes that’s correct. So let’s say it’s a £10 sale, £3 fees (inc 20% vat) then that’s correct and that’s the right thing.

If you’re making a £10 sale, £3 is fees (inc vat) and £2 is vat then that’s incorrect.

If it’s the latter you should contact seller support and inform them. Also read through their T&Cs (or ask ChatGPT to read through them) and find their policies.