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  • NETP - Amazon VAT liability and VAT not registered in time.

    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.
  • NETP input VAT reclaims for past purchases

    Hello, I am a UK LTD owned NETP online marketplace seller. We recently received news from Amazon that historical output VATs will be collected. I regret to say that, as a UK LTD company, we did not register for VAT until now because we thought we had a VAT exemption of 85,000 GBP. However, as we have now learned, this exemption does not apply to non-resident NETP sellers(UK LTD owners) like us. (We understand that it is our responsibility to understand this compliance, but unfortunately, even the accounting firms we worked with did not provide us with accurate information on this issue.) Now, historical output VATs will be charged to us by Amazon, but we have paid VAT on all the products we have supplied for sale since 2021. (All our product supply is made with UK-based wholesalers and invoiced in the name of our UK LTD company. Without VAT number.) Considering this situation, we will pay the output VAT of the sales we have made since 2021 and apply for VAT. But do we have a chance reclaim the input VAT of the purchases we have made since 2021 by declaring it to HMRC now? (We have all the record of invoices that we supply since 2021. ) I would like to state again that we understand and accept that our sales without VAT were a mistake. However, constantly changing regulations and the lack of Marketplace guidance made us victimized. We are ready to pay the penalty for the periods in which we did not make a declaration. However, we would like you to provide information on whether we can obtain the input VAT of our supplies without VAT. Thank you.
  • VAT reclaims for NETP marketplace sellers

    Hello, I am the owner of UK LTD, a company that sells on Amazon.co.uk and is not established in the UK as NETP. According to Amazon's information, it is the marketplace's responsibility to collect NETP sellers' VAT and forward it directly to HMRC. In this case, we will no longer have the accounting situation of deducting the output VATs from the input VATs and paying the remaining VAT debt in order to forward it to HMRC. However, without doing this accounting, if Amazon pays the output VAT directly to HMRC, the input VATs will only be reclaimed from HMRC after 3 months accounting period, and this will cause a big problem for our cash flow. In other words, we have to carry input VATs as an expense for 3 months. Since Amazon does not accept flat rate scheme as an option, we are quite worried about how to overcome this situation. I would like to know if HMRC can issue VAT refunds on a monthly basis. In the scenario where we are a NETP and registered with VAT, why can't we do this accounting ourselves? Thank you in advance for your help and advice. Kind regards.