I need your advice on a pressing issue with Amazon UK. We received a notification stating that we owe £22,900 in VAT to HMRC, I’m not registered for VAT, and haven’t made enough money from Amazon UK to owe this much.
I’m concerned about the potential impact on our Amazon US Seller account, which is under the same ownership but a different company and not linked to our Amazon UK account. If Amazon blocks our disbursements from the US account and demands payment of the owed VAT, which i won’t be able to pay.
What should I do?
Should I:
Close/delete our Amazon UK Seller account and dissolve our UK company to avoid affecting our Amazon US Seller account in the future?
Please share your suggestions and expertise to help us navigate this situation.
That is a sizeable amount they say you owe. What was your total sales in the UK from January 2021 to now? Divide that by 6 and that is the amount you owe. (for the sake of this, I have not included any amounts that you can claim back).
Isn’t Amazon the one who created this mess by allowing foreign sellers to get VAT exemption from day one? Then, when HMRC conducted an inquiry Amazon suddenly enforced VAT payments on foreign sellers starting from 2021. Anyway, we can’t do much against a giant like Amazon I was wondering if we could transfer or add a UK resident as a company shareholder and get VAT exemption on their behalf?
There is nothing much you can do here, since you have the final decision by amazons side. Eventually you can ask for all the VAT back from your purchases but Im not sure it will work since you never had an VAT number in the UK. You should check with accountant for confirmation