Final tax liability assessment for unpaid UK VAT

Sell On Amazon Global Selling
1

Hi there,

I’m looking for an Amazon UK seller who can offer some guidance. Here’s my situation:

The Amazon account was held by three UK-registered companies:

  1. From the start until 2022-03-08 – Company1 LTD (directors were UK residents)
  2. From 2022-03-08 to 2023-09-10 – Company2 LTD (directors were UK residents)
  3. From 2023-09-10 to the present – Company3 LTD (director is non-resident, that’s me)

In April 2024, I submitted a lot of documents, and everything seemed fine. Then, on August 19, 2024, I got a notification stating that my tax liability assessment for UK VAT was complete and I didn’t owe anything for the current company starting from 10-Sep-23.

However, a few days later, on August 24, 2024, I received another notification stating I had to pay VAT for sales dating back to 1 January 2021. But here’s the catch: Company3 LTD didn’t even exist back in 2021!

I’ve been repeatedly getting the same message:
“Hello, We have contacted our internal team for information regarding your issue. We will contact you as soon as we have an update or if we require further information. Thank you for your patience. Amazon EU Sarl.”

I’ve opened multiple cases and called several times, but it’s always the same response. I need help pressuring Amazon to provide a real answer and unblock my account and payments.

If anyone here can help or offer guidance, I’d really appreciate it!

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2

Amazon seems to require proof of VAT registration and documentation to address their belief that the current company (Company 3 LTD) should be paying VAT for sales dating back to 2021. The seller needs to clarify the timeline of their businesses’ VAT responsibilities and prove that the older companies (Company 1 and Company 2) were responsible for VAT before Company 3 LTD was formed. Dear Amazon EU SARL Team,

I am writing regarding the VAT determination I received on August 24, 2024, requiring payment of VAT on sales to UK customers starting from 1 January 2021. I believe this determination has been applied incorrectly to Company 3 LTD.

Please allow me to clarify the situation:

Timeline of Amazon Account Ownership:

Company 1 LTD held the Amazon account from [Date] until 8 March 2022.

Company 2 LTD held the account from 8 March 2022 until 10 September 2023.

Company 3 LTD has been the account holder only since 10 September 2023.

Incorrect VAT Liability Assignment: The current assessment requires Company 3 LTD to pay VAT for sales beginning in January 2021, during a period when this company did not exist. The companies responsible for VAT during the relevant periods were Company 1 LTD and Company 2 LTD, and they should be assessed for any unpaid VAT, not Company 3 LTD.

Request for Action: I kindly request that you correct this error and reassign VAT liability to the appropriate companies based on the timeline provided. I am also requesting the immediate unblocking of my Amazon account and any pending payments.

Supporting Documentation: I have attached the following documents to support my request:

Incorporation certificates and VAT registration details for all three companies.

VAT filing records for the periods covering 2021 to 2023.

Thank you for your attention to this matter. I look forward to a swift resolution.

Best regards,

[Your Name]

[Director, Company 3 LTD]

[Contact Information]

1 Like
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Thank you very much for taking the time to reply. I will keep you updated. Thank you again.

4

Did you buy the Amazon selling account from company 2?

If so: Did Company 3 assume the liabilities of Company 1 and Company 2? If the sale or transfer of the Amazon account included an agreement that Company 3 would take on all assets and liabilities (including VAT liabilities) from the previous companies, then Company 3 could potentially be responsible for those debts.

If there was no such agreement, then Company 3 LTD cannot legally be held responsible for the VAT owed by Company 1 or Company 2. In this case, Company 1 and Company 2 remain liable for their own VAT obligations, even after selling the Amazon account.

1 Like
5

No agreement, just the agreement of amazon transfer.

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Company 1 and 2 belonged to UK residents. and now company 3 is in the name of a UK non-resident and I think this is where the confusion comes from.