VAT is suddenly being charged on my Amazon Fees (Referal and FBA)
Hello,
For some reason all of a sudden Amazon is charging me VAT on their fees, see image below.
Normally VAT shouldn't be charged also because I have valid VAT numbers in FR/DE/IT/ES
Why is this suddenly happening? It needs to be reverted back ASAP.
Anyone know?
@Simon_Amazon @Ezra_Amazon @Ash_AMZ @Julia_Amazon @Sakura_Amazon_
Thanks for your help
VAT is suddenly being charged on my Amazon Fees (Referal and FBA)
Hello,
For some reason all of a sudden Amazon is charging me VAT on their fees, see image below.
Normally VAT shouldn't be charged also because I have valid VAT numbers in FR/DE/IT/ES
Why is this suddenly happening? It needs to be reverted back ASAP.
Anyone know?
@Simon_Amazon @Ezra_Amazon @Ash_AMZ @Julia_Amazon @Sakura_Amazon_
Thanks for your help
33 respuestas
Seller_QuM1AZgzfU9x4
This change was announced a while ago. VAT is now being billed from the country of establishment.
"Update to Amazon UK and EU agreements and VAT treatment now effective
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 issued by Amazon will be issued by AEU, instead of ASE.
If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, or Sweden, you will be invoiced by the AEU branch in your country of establishment. As a result, local VAT rules apply and VAT will be charged on your Amazon fees. In the majority of cases, we expect that you will be able to recover this VAT through your normal VAT return process.
We recommend that you contact your tax advisor for more information on recovering VAT as per your country of establishment's local regulation.
If your company is not established in the countries listed above, you will be invoiced by the AEU head office in Luxembourg, and there will be no change to how VAT is applied on Amazon fees.
Note: This change doesn't impact your account access, listings, product pricing, customer reviews, selling services or the price of services.
For more information, go to Update to Amazon UK and EU seller services entity and VAT treatment."
Seller_fP8fqVKxURdgA
Just a reply to your message: Nope , you cannot reclaim the vat if you're not vat registered .
Seller_1vyLJePYDN9hf
So even as a small business now it would make sense to get VAT registered as a result of this change, and then I could claim it back?
Seller_ZVAz3d5lZuGid
You could - you can only claim the VAT back on goods that you have paid VAT on, and being VAT registered means quarterly returns, so more work, so you would need to weigh up the pros and cons.
Seller_1vyLJePYDN9hf
Thanks Jilly. One day there will be some good news... probably not from Amazon though.
Seller_Uo7DjOjHQDtfz
You will also have to give 20% of your item's selling price to HMRC.
If you sell something for £10 you'll have to give £2 to HMRC. If the Amazon fees are say £2 + the VAT on top = 40p
So you'll be paying £2, so you can claim back 40p!
Seller_FzYxqnSoia90P
More likely not as you would have to charge VAT on your selling price
Seller_FzYxqnSoia90P
Your maths is not correct, and you dont claim VAT back on the amount you pay, you claim it on expenses for your business
Seller_1vyLJePYDN9hf
Erm, I already do this when I complete a tax return every year.
Seller_1vyLJePYDN9hf
So you are saying I just have to swallow it, that all my sales now are going to include 20% more going to Amazon and I can't claim this back?
Seller_ZVAz3d5lZuGid
"So you are saying I just have to swallow it, that all my sales now are going to include 20% more going to Amazon and I can't claim this back?"
No, it's not 20% on your selling price, only on the fees you pay on your sales - so does have an impact. You can only claim it back if you are VAT registered, as you say, you can claim your business expenses when you do your annual tax return, so those expenses will now be more as they will include VAT.
Seller_CNXMnZmfYYY3b
20% more on fees and it's not going to Amazon, it's going to the government.
Seller_MT8rt0A2OpbCx
Except Amazon's, imagine how much interest they will get from all that VAT not due to be paid for up to 13 weeks. They could at least pay sellers faster to compensate slightly.
Seller_HwaQlgFnhSuGS
Thats of my biggest issues at the moment. Every policy change seem to be to "bring us in line with the rest of the world" - except quicker payments seems to be mis-aligned with no change in sight.
Seller_FR0RYjm1PpXls
Seller_IC5dxZRZpcM4T
From your tone, it sounds like you may not have been applying the correct accounting procceedures for the VAT reverse charge mechanism?
Id make sure your yours numbers are correct before you get an hmrc inspection!
Seller_sg54Fq7GfBZzn
From speaking to HMRC only last week, they understand Amazon will pay them the fees, then as a seller, it will be for you to prove your eligibility for them and claim them back.
I suspect it will move to all VAT being collected at the source point, too at some point
I believe its to prevent people applying for a VAT number, then never paying their VAT as under law changes Amazon are then jointly liable for the VAT.
Ultimately, it's a minor change; you claim it back rather than not pay it. So if your books are right, it will still be a zero at the end once claimed back, just a different process
