Flat Rate Scheme eligibility for NETP

Hello, I have a UK established Limited Company registered with a virtual address. I am importing goods from the US, storing them in Amazon UK warehouse and selling them in Amazon UK via Fulfillment by Amazon. I am operating my business from outside of the UK which makes me NETP. I would like to know if I can choose the Flat Rate Scheme for VAT registration in my case.

Hi,

It is important to establish the status of your business in terms of whether it is a UK Established business or a NETP.

Please see the guidance below:

Non-established-taxable-persons (NETPs) — basic information

If you are a NETP and the goods are stored in the UK then Amazon should account for the VAT on the supplies to your non business customers.

Please see below:

Goods in the UK at the point of sale — sold by an overseas seller through an online marketplace

You can be eligible to use the Flat Rte Scheme if you are a NETP but bear in mind that you will npt be able to recover VAT on your imports in to the UK unless these are capital expenditure goods and therefore you would need to consider whether it would be beneficial to join the scheme.

Please see the information below:

Eligibility and conditions of the scheme

Capital expenditure goods

Thank you.