Hello,

Sorry if this covers ground already discussed but I want to triple check the impact of changes in VAT on fees.

In my case, we are a UK business selling in the UK and in the EU. We are registered for VAT in the UK, DE, FR & IT. My worry is that we would need to reclaim VAT charged on seller fees for each country.

My understanding from the recent news about VAT being added and deducted from seller fees is, however, that Amazon will soon be billing us for seller fees from a UK establishment (not Luxembourg) and therefore standard rate VAT will be included in these fees and deducted by Amazon.

Further, that seller fees for my Company's Amazon sales in Europe will soon be billed from the UK too (not individual countries in Europe) and will also have VAT deducted. IE that all VAT (aside from VAT on the actual products we sell) on fees will be billed in the UK and deducted in the UK (and therefore reclaimable in the UK.

This to me, and the like of me, the impact will be one of a hit on cashflow rather than material loss of cash, as it were.

Am I correct in this please? Any answers would be most welcome,

Thanks

Gordon

The article below is the one you need to read. From 1st August VAT is charged on all seller fees according to local rules. There is no longer an exempt status for UK sellers, all fees are subject to HMRC VAT rules exactly the same as any other UK VAT registered business.

1 August 2024

Update to Amazon UK and EU agreements and VAT treatment now effective

As previously communicated, effective August 1, 2024, Selling on Amazon, Fulfilment by Amazon, and all other services previously supplied by Amazon Services Europe S.à r.l. ("ASE") will be supplied by Amazon EU S.à r.l. ("AEU").

All agreements, policies, terms and conditions that previously referred to ASE, including Amazon Payments agreements, will now refer to AEU. Please consider any reference to ASE as a reference to AEU. Additionally, all invoices issued by Amazon will be issued by AEU, instead of ASE.

If your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, or Sweden, you will be invoiced by the AEU branch in your country of establishment. As a result, local VAT rules apply and VAT will be charged on your Amazon fees. In the majority of cases, we expect that you will be able to recover this VAT through your normal VAT return process.

We recommend that you contact your tax advisor for more information on recovering VAT as per your country of establishment's local regulation.

If your company is not established in the countries listed above, you will be invoiced by the AEU head office in Luxembourg, and there will be no change to how VAT is applied on Amazon fees.

Note: This change doesn't impact your account access, listings, product pricing, customer reviews, selling services or the price of services.

For more information, go to Update to Amazon UK and EU seller services entity and VAT treatment.