We received an email from Amazon :
"Hello,
We previously emailed you as we identified that you had made an inaccurate change to your business address, which does not match with your country of operations. This may have resulted in inaccurate tax treatment on your sales under the VAT on eCommerce legislation, effective 1 July 2021 in the EU.
We completed our final assessment and determined the final VAT liability you owe is EUR 6742.23 on your sales to EU customers to date.
Your account will remain suspended and your Amazon sales proceeds will remain temporarily ineligible until we agree upon how the EU VAT owed on your sales will be paid to Amazon. We will recover any VAT owed to Amazon using your available balance, if your available balance is not sufficient, we’ll continue to withhold disbursements."
Now upon checking, we came to know that the address on which we have registered the VAT in EU countries is our old company address that we changed back in 2020.
But we are already subscribed to Amazon VAT services and our VAT reps are Taxually.
We have been paying VAT regularly since 2020 and we have paid more than what Amazon is saying that we owe.
Our EU accounts have been deactivated for 3 months and there's not any progress at all.
What could be the possible problem and who's doing wrong in this case?
Has Amazon been paying VAT to tax authorities on our new address and we are paying VAT to authorities on our old address?
If we pay the amount asking us to pay how could we claim it back as we have already paid for it?
Should we correct our address with tax authorities first and then pay the amount to Amazon?
Is it possible that we can change the address and ask Amazon to recheck our liability?
We are very concerned about that.
Amazon is continuously telling us to pay VAT but we have already paid VAT via Amazon VAT services.
We are trying to reach the concerned department but we are not getting any positive response at all from Amazon.
Please someone guide us properly
Thanks