I’m sorry, no doubt this has already been asked but… I’m not vat registered. As far as i was aware you can only claim vat back (on seller fees) if you are registered. Makes me wonder why amz werent charging vat before, but I guess us non-vat regsitered lose out because of it?
They used to bill you from their company based in Luxembourg but now they bill you from their uk company which means they are obliged to charge you vat.
2 Likes
There was a change, and Amazon updated their VAT status. So, like with any other service in the UK, you will pay VAT.
2 Likes
I have been told to hold off VAT registration as long as possible, granted you can claim the VAT back against your sales but you’re still paying more overall.
It’s hurting a few of my wholesale lines if I am honest this change.
I have put my prices up and intend to see how things go, I have lost the buy box but will hold and see it’s possible some sellers may drop off some listings.
1 Like
Non-VAT registered sellers still have better margins than those on the standard rate. If you are on the flat rate, then switching to the standard rate is the only option left, like we did. However, if you are still under the £90,000 sales threshold, I think you can still maximize your profits compared to the standard rate. Plus, you can create a Google Sheet to analyze and compare your margins for different VAT schemes and recent changes.
1 Like
Over the past two years, there were significant tax legislation changes all across the Europe. It created a lot of hassle, so most businesses are doing their best to make things easier and reduce all the bureaucracy.
We had to start paying the VAT separately in every single country of the EU since 2022. So I opted to setup a company outside of the EU, in order to have the VAT handled by Amazon as the marketplace tax facilitator. I believe that Amazon wished to make things easier for themselves as well by switching their legal entity:
I would advise you to speak with an accountant to advise you the best solution depending on your specific situation and business needs.
1 Like
Thnks all, that explains it