VAT on amazon ads - for VAT exempt
Hi
When I started selling on amazon I was VAT registered. Later I have de registered in HMRC and submitted VAT de registration certificate to amazon. Amazon has refunded me VAT which was deducted after I de registered until I provided them the certificate. So I have got it back.
Amazon seller central support have mentioned to me that for amazon ads vat refund, I need to contact amazon ads team.
Amazon ads team is not agree for VAT refund to me. Below is there reply
We’ve reviewed your account and found that the business address registered to your account is in the [UK]. Under [UK] VAT Law, Amazon is required to charge VAT at the standard rate on all sales of advertising services to advertisers with their place of business establishment in the [UK]. This is applicable to all of your Sponsored Products, Sponsored Brands, Sponsored Display and Display advertising campaigns. Whether or not you charge VAT on your sales doesn’t impact Amazon’s requirements to charge VAT. Hence, we can’t provide a refund.
If amazon seller central service team is providing me refund considering me VAT exempt then why amazon ads are still charging me VAT on ppc ads ?
Am I eligible to get the VAT back from amazon ads (from the date I deregistered VAT in HMRC) ?
Regards
VAT on amazon ads - for VAT exempt
Hi
When I started selling on amazon I was VAT registered. Later I have de registered in HMRC and submitted VAT de registration certificate to amazon. Amazon has refunded me VAT which was deducted after I de registered until I provided them the certificate. So I have got it back.
Amazon seller central support have mentioned to me that for amazon ads vat refund, I need to contact amazon ads team.
Amazon ads team is not agree for VAT refund to me. Below is there reply
We’ve reviewed your account and found that the business address registered to your account is in the [UK]. Under [UK] VAT Law, Amazon is required to charge VAT at the standard rate on all sales of advertising services to advertisers with their place of business establishment in the [UK]. This is applicable to all of your Sponsored Products, Sponsored Brands, Sponsored Display and Display advertising campaigns. Whether or not you charge VAT on your sales doesn’t impact Amazon’s requirements to charge VAT. Hence, we can’t provide a refund.
If amazon seller central service team is providing me refund considering me VAT exempt then why amazon ads are still charging me VAT on ppc ads ?
Am I eligible to get the VAT back from amazon ads (from the date I deregistered VAT in HMRC) ?
Regards
4 replies
Seller_QuM1AZgzfU9x4
It seems you have applied for / been given an exemption after de-registering. You have gotten a refund on the fees that are not billed from within the UK. Amazon currently bills the ad fees from the UK so they are correct that you are not due a refund.
Amazon are also changing the way they bill all fees from August, at which point any exemption will cease entirely and Amazon will once again start collecting VAT on all their fees.
Seller_MT8rt0A2OpbCx
You cannot get the VAT back on ads. Ads are invoice from Amazon U.K. and are required by law to charge VAT. Seller fees have been invoiced by Amazon LU and can be reverse charged for sellers that can show they are a business, whether VAT registered or not, so there will be zero VAT on fee invoices unless a private seller or not added their VAT number. From next month this will change and all U.K. sellers will be charged VAT on all invoices.
Seller_tRuvBEHDedp4q
I can only echo what was said above.
Being deregistered from VAT does not exempt you from VAT being added to your bills. It just means you do not have to collect/remit VAT on your sales and cannot claim back any VAT paid
Winston_Amazon
Hopefully these great posts from @Seller_QuM1AZgzfU9x4, @Seller_MT8rt0A2OpbCx & @Seller_tRuvBEHDedp4q helped @Seller_pmwfULyh9as20!
