VAT certificate says UK established but have learned we are NETP
I know this has been discussed in many posts but I can't see anything about overseas companies who registered for VAT before 2021.
We registered for VAT in 2018 through AVASK and set up a UK company for the 85K tax-free threshold, as that was the advice at the time. Our UK company address is that of our accountant and directors live outside of the UK. When applying for VAT AVASK has told us that before 2021 there was no option to choose that we were NETP and not UK-Established. Since passing the tax-free threshold in 2019, we have been paying HMRC quarterly at 20% with the understanding that we were fully compliant. We even passed a full audit in 2019.
Now we are caught up in this VAT compliance disaster with disbursements frozen since Jan 16. There is no way to contact Amazon to discuss this and sending emails to the drtax nonestablished has been like sending into a black hole with no response.
There seems to be no way out of this mess and our business is slowly bleeding out as cashflow has stopped worldwide. This has been so unfair to those who thought they were doing the right thing and frankly, Amazon and HMRC are at fault here. Many accountants were not aware of what constitutes a UK-established business, especially before 2021 and there are many more in the same boat as us.
The worst is that Amazon has not helped us work through this at all and total radio silence after taking such drastic measures and stopping our payments. It's unfathomable how they have done this.
VAT certificate says UK established but have learned we are NETP
I know this has been discussed in many posts but I can't see anything about overseas companies who registered for VAT before 2021.
We registered for VAT in 2018 through AVASK and set up a UK company for the 85K tax-free threshold, as that was the advice at the time. Our UK company address is that of our accountant and directors live outside of the UK. When applying for VAT AVASK has told us that before 2021 there was no option to choose that we were NETP and not UK-Established. Since passing the tax-free threshold in 2019, we have been paying HMRC quarterly at 20% with the understanding that we were fully compliant. We even passed a full audit in 2019.
Now we are caught up in this VAT compliance disaster with disbursements frozen since Jan 16. There is no way to contact Amazon to discuss this and sending emails to the drtax nonestablished has been like sending into a black hole with no response.
There seems to be no way out of this mess and our business is slowly bleeding out as cashflow has stopped worldwide. This has been so unfair to those who thought they were doing the right thing and frankly, Amazon and HMRC are at fault here. Many accountants were not aware of what constitutes a UK-established business, especially before 2021 and there are many more in the same boat as us.
The worst is that Amazon has not helped us work through this at all and total radio silence after taking such drastic measures and stopping our payments. It's unfathomable how they have done this.
4 respuestas
Seller_MT8rt0A2OpbCx
A quick google search for "how long has a netp been required to register for vat" brings up an HMRC document from 2016, so not HMRC's fault. Your accountants should have been aware of the requirement, or at least looked it up before giving incorrect advice. With a NETP, the threshold is zero, not 85K, so you may be liable for VAT from before you registered, which may be the problem, although there seems to be very many in the same boat.
Sorry, I know it's not much help.
Seller_w5bkASaqVENco
Have you had any light shed on this issue?
This is our exact same issue. We were registered as a corporation back in 2017, HMRC is aware that we are an NETP, and have been paying VAT quarterly since the beginning.
I've sent numerous emails which seem to be going into the void (drtaxnonestablished) and have tried contacting through Seller Support but I'm getting nothing... trying to be a squeaky wheel though..
Our main business is on Amazon US (which is completely blocked from disbursements) we turnover such a tiny amount in the UK, but without the UK side of things unblocked I fear that soon our company will start falling behind on payments just because we can't get funds from our main income source (Amazon US) this has been going on for so long now and I'm starting to sweat!
