Gavin Coutts
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RE: VAT for UK Based Sellers Trading on USA Marketplace
Hi Thank you for your reply. I have operated since registration on Amazon.com as a sole trader (or sole proprietorship). I have also submitted tax returns to show that my business is trading under a trading name as a sole trader. However Amazon still charges VAT. I have been fighting tooth and nail with them over the last 6-9 months regarding the interpretation of my UK VAT status and UK - USA Tax treaties. Amazon believe they are correct in charging UK vendors VAT on all digital services provided in the USA Marketplace. The only way they will stop VAT charges is for vendors to register for VAT and submit their VAT registration. This seems crazy to register for UK VAT as I have zero VAT liability in the UK and therefore by UK tax laws not required to do so as a sole trader. I guess it comes down to what is the official ruling on 'Place of Supply' in relation to digital services provided between US suppliers to UK vendors/merchants and whether Amazon's interpretation of those rules are correct in my situation. Amazon Europe (Based in Luxembourg) cover my situation and recognise VAT is not charged to non VAT registered business's: Amazon Services Europe Business Solutions Agreement S-6(b) prior to Jan 2021 If you are in business and established in a European Union country, but you do not have a VAT registration number issued by one of the European Union countries, then you will be able to provide Amazon with other evidence that you are in business. Acceptable evidence is a copy of a recent corporate tax return or an official document issued by a government agency proving that you are in business. Once your evidence is reviewed and accepted by Amazon, VAT will not be charged by Amazon on the fees hereunder provided you are not established in Luxembourg. If Amazon Europe are recognising non-VAT registered businesses are not liable for VAT payments why aren't USA? Surely the same situation applies here? -
VAT for UK Based Sellers Trading on USA Marketplace
I've been trading on Amazon.com for the past 7 years as a sole trader based in the UK. I trade exclusively on Amazon.com. Amazon's fulfilment and advertising services are provided for the USA marketplace. Products are sourced and sold to customers exclusively within the USA. During that time Amazon have been charging me VAT on Seller Fees, Fulfilment Fees and Advertising Fees. I'm not VAT registered as I have no trade in the UK and all business expenses are USA related. I'm led to believe that Amazon have been incorrectly charging me as a uk based seller VAT on all their fees as they are invoiced from head office in Seattle, US. for USA exclusive services. Is that correct? I believe one way to avoid fees going forward would be to voluntarily register for VAT as a sole trader even though I don't trade in the UK. Would there be any way of reclaiming past VAT charges if they have indeed been incorrectly issued?