VAT Policy Challenges for UK vs Non-UK Established Businesses ?
UK-established businesses?
Hi sellers,
Can anyone share their experience with Amazon’s handling of VAT depending on how your business is registered?
For non-UK-established businesses registered for VAT — where Amazon collects and submits VAT on your behalf (under the UK VAT domestic reverse charge system) — what issues or challenges have you faced?
For UK-established businesses registered for UK VAT — where Amazon may not collect VAT automatically, and you're required to handle VAT collection and submission yourself — what problems have you encountered?
We’re trying to understand which structure faces more operational or compliance challenges when selling on Amazon UK.
Any real experiences or advice would be very helpful.
Thanks in advance!
VAT Policy Challenges for UK vs Non-UK Established Businesses ?
UK-established businesses?
Hi sellers,
Can anyone share their experience with Amazon’s handling of VAT depending on how your business is registered?
For non-UK-established businesses registered for VAT — where Amazon collects and submits VAT on your behalf (under the UK VAT domestic reverse charge system) — what issues or challenges have you faced?
For UK-established businesses registered for UK VAT — where Amazon may not collect VAT automatically, and you're required to handle VAT collection and submission yourself — what problems have you encountered?
We’re trying to understand which structure faces more operational or compliance challenges when selling on Amazon UK.
Any real experiences or advice would be very helpful.
Thanks in advance!
2 replies
Seller_MT8rt0A2OpbCx
I am not sure what you are trying to achieve. There isn't a choice of being UK established or not, you either are or are not. You need to know and comply with the regulations, not try to avoid them.
There have been many examples on here where overseas sellers have tried to evade paying due VAT by "renting" a virtual office in the UK. registering that with HMRC, claiming they are under the threshold for VAT registration. However many of those have been found out and had huge sums of money withheld and their account suspended. Your company shares a virtual office with over 2,000 other active companies (must be crowded). This would indicate to Amazon that you are not established in the UK.
If you do not have premises in the UK, where you accept and send goods and paperwork, hold company meetings, make business decisions, make and drink tea or coffee (that's crucial!), or if one of your Directors or sole trader is resident outside the UK (i.e. NETP, as is one of yours) then you are not established in the UK.
For you, non UK established is the correct and only option to fulfil your obligations.
