jamesmks776

Dear HMRC, As a U.K. resident, in 2020 we opened a limited company and registered its VAT. This company operates an e-commerce business by selling on Amazon UK. This company never had employees on PAYE. It’s a small business and it’s always solely operated and managed by the current director at the time. Since 2020 the company was always operated by a U.K. resident. By the end of 2023, the director (the only person that operates the business) moved from the U.K. to another EU country, oblivious about the fact that the company they operate will become a non UK established business. Around April 2024, Amazon informed the current director that they believe the company is a non U.K. established business NETP and will have to pay back all VAT since 2021 that should have been paid by Amazon on the seller behalf. This claim is only partially valid. Yes, the business became non UK based the moment the sole director left the U.K. but they were a U.K. resident until the end of 2023 so Amazon shouldn’t ask for VAT so that they can pay it themselves for the period before the director moving abroad. Question 1: If at the point of Amazon informing the company that they are non UK based, in April 2024, the abroad based director terminated their directorship and the company appointed a U.K. based director to solely manage and operated the business, are we correct to think that the business would reclassified as U.K. established business. Question 2: If the previous director moved abroad between end of 2023 and terminated their directorship in April 2024 so that a UK based director can take over, does it mean the company has to pay Amazon for VAT so that they can pay it themselves just for that period as per UK Ecommerce VAT Legislation 2021?