When you use Amazon VAT services, it will be assigned to you a service provider, I’m still in the process of changing using them. Only if you are registered in the same country as Amazon you will be charged for VAT on fees, I think, they use Luxemburg VAT. And yes you can be reimbursed for VAT paid to suppliers.
The questions are pretty vague as it is more complex than explaining but to keep it brief. Vat is charged on the price of a product at each stage and charged in accordance with local vat laws. Amazon’s is legally required to collect sales tax on your behalf and give to local authorities. There are different scenarios as everyone’s case is different, where they are based and where they are selling too.
You can definitely claim back the VAT paid on tax deductible expenses. Furthermore, once you provide amazon with your VAT number they stop charging you VAT on your fees and instead reverse charge the VAT on them. Overall, being VAT registered can give your company a good presence to build more business with suppliers and ultimately you don’t need to worry about thresholds you can continually grow the business. Being VAT however, makes business more complex but essentially to grow the business you will need too. Unless you only sell in your home jurisdiction for now I will avoid it if you haven’t hit the threshold.
I only watched the bottom one and as it has a serious error, I would like to clarify to anyone that watches it and thinks that if you live abroad but register a company in the UK, then you don’t need to worry about VAT when doing FBA, you are wrong.
Any non-residents MUST register for VAT.no threshold, EVEN IF you have registered a company in the UK. Search for NETP for answers.
