Hi,

I received the below email today but I am a sole trader based in UK and I am not even close to 85000 Vat threshold to register for Vat. What should I do ?

Hello,

Your disbursements have been deactivated in all stores you operate worldwide (excluding Amazon.in) from 25 January 2024 as we have indicators that you might not be UK established for VAT purposes. As a result, we need you to provide additional documentary evidence proving that your company is established in the UK in accordance with this legislation, within 60 days of this notification.

UK VAT on eCommerce legislation (live since 1 Jan 2021) requires Amazon to collect and remit VAT on all B2C sales performed by non-established selling partners to customer in the UK. As a result, we have to ask you to provide additional documentary evidence (listed here: https://sellercentral.amazon.co.uk/gc/vat-education/voec-uk-establishment) proving that your company is established in the UK in accordance with this legislation, within 60 days after receiving this notification.

If you fail to provide the documentary evidence within 60 days of this notification, Amazon will conclude that you are not established in UK and will start collecting and remitting VAT on your B2C sales. In such a case, additionally, you will be required to pay the VAT amount to Amazon to account for the historical un-paid VAT on all B2C sales that fall under UK VAT on eCommerce legislation since 1 Jan 2021. further to this, you can continue selling on Amazon, but you will not be able to disburse any funds from your accounts, until any UK VAT owed is paid to Amazon

Why did this happen?

From 1 January 2021, Amazon is liable to collect and remit VAT on B2C sales from non-UK established Selling Partners to B2C customers in UK under the UK VAT on e-Commerce legislation. We have taken this measure because as per investigation taken on your account, we found indicators that that your business is established outside the UK for VAT purposes. Hence, we need to get the documentary evidence to ensure we apply the correct treatment to your B2C sales.

I am established in the UK. How do I get my disbursements released?

If you believe you meet UK business establishment requirements, submit the required documents to kyc-drtax-verification@amazon.co.uk provided in “Determination of Establishment for UK VAT” page: https://sellercentral.amazon.co.uk/gc/vat-education/voec-uk-establishment.

Note that you have to send the documents required using your Amazon seller central Registered email id. It will take us up to 3 days to review the documents provided by you. At any point, if we conclude based on the provided documentary evidence that your company is established in the UK, we will release your disbursements within 24 hours of completing the verification. This will become available to you as per your normal payment cycle.

I do not meet UK establishment requirements. How can I get my disbursements released?

Send an email to drtax-nonestablished@amazon.co.uk from your seller central registered mail id and inform us (i)that you are not established and (ii) the country from which you operate. There is no requirement to provide any documentation where this is confirmed as being non-UK.

In such a case, additionally, you will be required to pay the VAT amount to Amazon to account for the historical un-paid VAT on all B2C sales that fall under UK VAT on eCommerce legislation since 1 Jan 2021. We will inform you the next steps within one week after receiving your email

Note: Do not send any documents to this id drtax-nonestablished@amazon.co.uk if you are established in the UK. Documentary evidence to prove that you are established in the UK should only be sent as per instructions in the section above

What happens if I don’t take the required actions?

If you fail to provide the documentary evidence within 60 days of this notification, we will conclude that you are not established in UK and will start collecting and remitting VAT on your B2C sales. In such a case, additionally, you will be required to pay the VAT amount to Amazon to account for the historical un-paid VAT on all B2C sales that fall under UK VAT on eCommerce legislation since 1 January 2021. You may continue selling on Amazon, but you will not be able to disburse any funds from your accounts, until any UK VAT owed is paid to Amazon.

Why are you withholding funds on my account?

Your funds will be on hold in accordance with our policies:

• BSA: https://sellercentral-europe.amazon.com/help/hub/reference/G201190440

• APE/APUK Agreement: https://sellercentral-europe.amazon.com/help/hub/reference/G201190400

Thank you for selling on Amazon.

Sincerely,

Amazon Payments UK Limited