NETP VAT Refund - Amazon

The LLP is registered seller on online marketplace (i.e. Amazon). We have been filing and paying VAT on quarterly basis to HMRC, however on review of our account by Amazon inline with the notice by UK Government No: VATREG37150 the LLP is determined to be established outside UK for the period 19-04-2023 to 08-03-2024. As a result, of this assessment the VAT is to be collected by Amazon and Amazon are now withholding our funds. However, this was already paid to HMRC during quarterly filings by the LLP, thus please advise how we should proceed? Solution we identified: Amending the return to reclaim from HMRC and pay the same to Amazon. - Should we file the form VAT652? - Should we do this quarterly basis. In our case 4 quarters are affected or file for the whole time period? We do annually 400,000£ in sales - Is there anything specific we can request from Amazon side to expedite or simplify this? If the above is not the best method. Please advise how we should proceed. Kind regards, Guhan.

Hi,

If you were a NETP during that time, then it would have been the responsibility of the marketplace to have accounted for the VAT on the sale of the goods. If you have paid this over to HMRC then you would need to complete a VAT 652 and you will complete these for each period. You can see guidance here:

Tell HMRC about errors in your VAT Return

You would not need to request anything from Amazon but please detail on the VAT 652 the reason for the correction.

Thank you.

We have a similar situation with Amazon, with a likely VAT refund of nearly £500,000 (VAT). Perhaps we can work together for our mutual benefit and share experiences.