Subject: Urgent Clarification Needed on VAT Application on Amazon Fees

Hello All and Amazon Team,

I am a UK-based seller, and I have serious concerns regarding the recent update about VAT treatment effective August 1, 2024. I would greatly appreciate clarification on the following points:

Scope of VAT Application:

Will VAT be charged on all Amazon fees, including Selling on Amazon fees, Fulfilment by Amazon (FBA) fees, commission fees, sponsored ads fees, and any other service fees?

VAT Reclamation Process Across Multiple Countries:

As a seller operating in multiple countries (UK, France, Italy, Spain, and Germany), will we have to reclaim VAT separately from each country’s tax authority?

What is Amazon’s guidance or support for handling VAT reclaims in each country?

Challenges with VAT Reclamation:

I have had very bad experiences reclaiming VAT from France, with delays extending over three years. This situation has caused significant financial strain. The potential requirement to reclaim VAT from multiple countries could severely impact cash flow and potentially bankrupt many businesses, especially when VAT constitutes 20% on top of Amazon fees, which already take up around 50% of turnover.

Given the gravity of these concerns, I urge Amazon to provide detailed guidance and support for sellers on these points. It is crucial to understand how these changes will be implemented and what measures will be in place to assist sellers with VAT reclaims efficiently.

Thank you for your prompt attention to these urgent issues.