VAT on Fees and De-registering for VAT
I de-registered for VAT as my turnover sunk below the threshold. I removed my VAT number and opened a case with Seller Central.
As I understand, being exempt for VAT, does that mean Amazon shouldn't charge VAT on some selling fees?
Also, the main problem I have is with Seller Central. They gave me examples of documents I should sent to a) say I de-registered for VAT and b) am a sole trader.
HMRC sent me a letter showing I de-registered for VAT but they don't send letters out to say you're a sole trader but told me to send Amazon my Tax Calculation as it says on page 2 'income from self employment'.
I uploaded them to the case but they were instantly rejected. I wrote back explaining these documents should be suffient as that what HMRC have told me and now the case is an endless loop of 'it's with the specialist team' and 'we're working on it', which as any experienced seller would know, it's highly likely I'll get another rubbish response even though they've been 'looking' at it for over 3 weeks.
I suspect, with the VAT threshold going up slightly, I may not be the only one de-registering for VAT so any help or assistance from a moderator would be hugely appreciated...thanks in advance
VAT on Fees and De-registering for VAT
I de-registered for VAT as my turnover sunk below the threshold. I removed my VAT number and opened a case with Seller Central.
As I understand, being exempt for VAT, does that mean Amazon shouldn't charge VAT on some selling fees?
Also, the main problem I have is with Seller Central. They gave me examples of documents I should sent to a) say I de-registered for VAT and b) am a sole trader.
HMRC sent me a letter showing I de-registered for VAT but they don't send letters out to say you're a sole trader but told me to send Amazon my Tax Calculation as it says on page 2 'income from self employment'.
I uploaded them to the case but they were instantly rejected. I wrote back explaining these documents should be suffient as that what HMRC have told me and now the case is an endless loop of 'it's with the specialist team' and 'we're working on it', which as any experienced seller would know, it's highly likely I'll get another rubbish response even though they've been 'looking' at it for over 3 weeks.
I suspect, with the VAT threshold going up slightly, I may not be the only one de-registering for VAT so any help or assistance from a moderator would be hugely appreciated...thanks in advance
1 reply
Seller_QuM1AZgzfU9x4
De-registering for VAT doesn't make you exempt from VAT. All that does is mean Amazon start charging you the VAT on their fees again. Generally all a seller needs to do is remove their VAT number - no need for any documents.
However, as most Amazon fees are actually charged from within the EU rather than the UK, sellers based in the UK are able to ask Amazon to stop charging that VAT. Doing so requires the seller to provide proof of being a UK-based business.
There's been a lot of "hype" about asking for that exemption since a lot of sellers view it as free money. There are however accounting implications from doing so which means it may not be the best course of action for every seller. This is especially true for sellers who are near the VAT threshold and means sellers wanting to go down this route should ensure they seek advice first / understand how their accounts may be impacted - including potentially being pushed back over the VAT threshold.
