VAT calculation for goods sold on Amazon

Hi, VAT registered company is engaged in selling goods through Amazon's platform. They have been following the cash basis VAT accounting scheme and have encountered a specific scenario related to the VAT calculation on their sales. Amazon transfers funds approximately every two weeks into their comapny's bank account. However, they also reserve a certain amount from these transfers, which is later released at a different time. Our question therefore relates to the VAT treatment of these transactions during the VAT period. As per VAT guidance in VAT cash accounting scheme notice 731, section 5.2, it states that if an agent collects payments on your behalf, you must account for VAT on the supply in the VAT period in which the agent collects payment from your customer. Their concern is whether Amazon can be considered an "agent" in this context, and whether they are required to account for VAT when Amazon receives money from their customers, even if it includes the reserved amount that is not yet transferred to their bank account. Thank you.

Hi.
If the marketplace are acting in the capacity of facilitating sales then is very likely that they will be classed as an agent and therefore the treatment of the transactions within Notice 731 section 5.2 will be relevant.
I would,however, confirm the nature of the  relationship with the marketplace .

Hi team you said "is very likely that they will be classed as an agent" so is this making an establishment for a uk company with non uk director living abroad ?

Hi Kahlid,
Hi.I was commenting on the relationship between a business and the marketplace.
However the marketplace are in a better position to comment on the nature of their relationship with your business.
Thank you.