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Posted Thu, 19 Sep 2024 08:31:24 GMT by Mert Kaan GUNDOGAN
Hello, I have been a UK LTD company owner since 9 June 2022 and have not registered with VAT since then. I have been selling on Amazon UK ever since and I source the products I sell from local UK suppliers. All my purchases are invoiced and with Input VAT. I am a NETP. I just became aware of this situation and did not know that I had to register for VAT from the beginning. (I thought the VAT threshold was valid for me). Now Amazon has alerted me to the situation and wants me to pay them back the VAT due. In order to fix the situation and put it on track, I want to register for Backdated VAT. In this case, my questions to ask are: 1- When I apply for Backdated VAT, will I report the VAT arising from the sales I have made so far to HMRC? Or does Amazon already do this? 1/2- If I report, will I take into account input VAT from my purchases? 2- Will I pay directly to HMRC regarding these output VATs? (Amazon already makes this payment) 3- Will I be able to claim back from HMRC the input VATs of the stocks(Selling Goods) I purchased for direct sales purposes, even if the stocks have been sold in the past? Thank you.
Posted Fri, 27 Sep 2024 14:53:39 GMT by HMRC Admin 19 Response
Hi,
If you are a NETP and selling goods to UK consumers via a marketplace and the value of the goods is under £135 then the marketplace have the reposonsibilty to account for the VAT.
If you sell goods from a UK wharehouse via a marketplace then the marketplace are responsible for the VAT regardless of the value of the goods. You can see the guidance here:
Outline of the changes
You can backdate your VAT registration up to 4 years.
As long as you are a NETP then there will be no VAT to account for by your business as this will be done via the marketplace.
You are entitled to recover VAT incurred on your purchases from the date of your registration as long as the conditions are met as per the guidance here:
Introduction to input tax
Thank you.

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