Arshad Ali

I am seeking assistance regarding the VAT status of my company. As the director, I have encountered an issue where Amazon UK has been deducting VAT on services fees from my account since November 2023. They have requested a VAT deregistration certificate to process my refund request for the deducted VAT. I understand that I need to pay VAT on my sales to HMRC for this period. However, I mistakenly selected VAT Exemption on Amazon, unaware of the non-established taxable person (NETP) rules (VAT Notice 700/1). I believed I was exempt from VAT due to my revenue being below the £85,000 threshold, not realizing that this threshold does not apply to me as an NETP. Consequently, I must register for VAT when making any taxable supplies in the UK and cannot cancel my VAT registration based on reduced turnover. For reference, here is the relevant timeline: VAT Registration Date: 25th May 2021 VAT Registration Cancellation Date: 8th September 2023 Selling re-started and Amazon Started collecting VAT on services fees: November-2023 to Till Date VAT Re-registration Request Date: 26th May 2024 (VAT Registration Start Date: 1st November 2023) Thank you for your assistance.

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