The information provided here might be subject to changes. For the most accurate and up-to-date information, you should check with official sources or professional advisors.
Amazon operates differently with regard to Value Added Tax (VAT) in the UK, depending on whether the seller is a third-party seller or Amazon itself. Here’s a general overview:
Third-Party Sellers on Amazon:
- VAT Registration:
- If a third-party seller on Amazon exceeds the UK’s VAT registration threshold, they are required to register for VAT with HM Revenue & Customs (HMRC).
- Sellers may voluntarily register for VAT even if they don’t meet the threshold.
- VAT Collection:
- Sellers are responsible for charging VAT on eligible products.
- The VAT rates may vary depending on the type of goods.
- Amazon are responsible for collecting VAT from customers on eligible products.
- VAT Payments:
- Sellers are required to periodically submit VAT returns to HMRC.
- Amazon are responsible to periodically pay the collected VAT to HMRC for the sellers’ sales.
- Fulfilment by Amazon (FBA):
- For sellers using Amazon’s FBA service, Amazon can handle storage, packing, and shipping of products. However, sellers remain responsible for VAT compliance.
Amazon as a Seller (Amazon Retail):
- Amazon’s Role:
- When Amazon sells its own products (as a retailer), it is responsible for handling VAT on those sales.
- VAT-Inclusive Pricing:
- Prices listed on Amazon for products sold by Amazon generally include VAT.
- VAT Payments:
- Amazon pays the appropriate VAT to HMRC on its sales.
- Third-Party Sellers Using Amazon’s VAT Services:
- Some sellers opt to use Amazon’s VAT Calculation Service, where Amazon calculates and collects VAT on behalf of the seller.
Overseas Sellers:
- Overseas Sellers and VAT:
- Overseas sellers (outside the UK) may be required to register for UK VAT if they surpass certain thresholds for distance selling to the UK.
- VAT on Imported Goods:
- Sellers importing goods to the UK may be subject to Import VAT, Customs Duty, and other fees.
- VAT Representation:
- Some overseas sellers may appoint a UK-based VAT representative to handle their UK VAT obligations.
It’s important for sellers on Amazon to stay informed about VAT regulations and periodically review their obligations, as tax laws can change. Additionally, consulting with a tax professional or legal advisor with expertise in UK VAT can provide tailored advice based on specific circumstances.
To get help with your VAT compliance, please contact our VAT team on +44 (0) 208-004-1160 in the UK, or ++1 (714) 782-7000 in the USA or email us at query@MyVATdirect.com.
About My VAT Direct Ltd
My VAT Direct is a bespoke VAT registration, fiscal representation, calculation and filing service specifically designed to assist Amazon Sellers and e-commerce merchants who desire the benefits of cross-market selling without the worry of tax compliance in foreign markets.
My VAT Direct is comprised of knowledgeable and experienced tax experts, who for 10+ years have helped e-commerce sellers enjoy the selling opportunities a mass market can provide.
My VAT Direct can be reached via email at info@MyVATdirect.com, through the website www.MyVATdirect.com and via phone in the UK +44 (0) 208-004-1160 and ++1 (714) 782-7000 in the USA.
About SMBE Direct Ltd
My VAT Direct is a subsidiary of SMBE Direct, a world reaching B2B and B2C business services conglomerate, giving rise to exceptionally talented and well-experienced professionals organised into business units, that provide direct services to SMEs and enterprise level businesses, whereby increasing their brand awareness and sales.
SMBE Direct can be reached via email on info@SMBEdirect.com, through its website www.SMBEdirect.com and via phone in the UK +44 (0) 208 004 4545.
