New Rules for VAT @ AmazonUK?
10-22-20, 09:45 PM
#1
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New Rules for VAT @ AmazonUK?
Just got this email from AmazonUK. I'm not a seller there, but it seems to allude to post Brexit changes in where and when VAT is going to be applied to non UK orders
Dear Seller,
Starting January 1, 2021, as part of Brexit, a new set of VAT rules will apply in the UK. Please read this email as it contains potentially important information for your business.
If you are delivering goods to UK customers from outside of the UK:
o The current VAT exemption for sales of goods under £15 will be removed. All of your sales of goods will now be subject to VAT.
o If the shipment value of these goods does not exceed £135, Amazon will be required to collect and remit the applicable VAT.
o If the shipment value exceeds £135, you will still have to remit VAT and any import duties yourself, as you are currently doing.
If you are delivering goods to UK customers from inventory stored in the UK, and your place of establishment is outside of the UK, Amazon will be required to collect and remit the applicable VAT. This will affect both sellers who use FBA in the UK and those who use third-party fulfillment methods.
If you are delivering goods to UK customers from outside the UK, and the customer is VAT-registered in the UK (B2B customer), Amazon will not be required to collect and remit VAT. The VAT-registered customer will self-report UK VAT through their VAT return.
In preparation for these changes, please ensure that your Seller Central account details are up-to-date and that you continue to provide list prices that are inclusive of VAT for the marketplaces you list on.
The UK government is expected to publish the finalized legislation for these changes during Q4 of 2020. We are here to help you prepare for these changes, and we’ll keep you updated on any changes to current expectations. Refer to our Help page for the latest information: https://sellercentral.amazon.com/gp/help/external/GSF678GXLDTTTETZ.
Please also note that the above changes do not alter your VAT registration obligations. If you need help with VAT registration and filing in the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic, visit VAT Services on Amazon to sign up: https://sellercentral-europe.amazon.com/vat-registration/v2/index.html/vat-services?ref=eu_DR_VISALP#/welcome.
Thank you for selling on Amazon,
Amazon Services
Starting January 1, 2021, as part of Brexit, a new set of VAT rules will apply in the UK. Please read this email as it contains potentially important information for your business.
If you are delivering goods to UK customers from outside of the UK:
o The current VAT exemption for sales of goods under £15 will be removed. All of your sales of goods will now be subject to VAT.
o If the shipment value of these goods does not exceed £135, Amazon will be required to collect and remit the applicable VAT.
o If the shipment value exceeds £135, you will still have to remit VAT and any import duties yourself, as you are currently doing.
If you are delivering goods to UK customers from inventory stored in the UK, and your place of establishment is outside of the UK, Amazon will be required to collect and remit the applicable VAT. This will affect both sellers who use FBA in the UK and those who use third-party fulfillment methods.
If you are delivering goods to UK customers from outside the UK, and the customer is VAT-registered in the UK (B2B customer), Amazon will not be required to collect and remit VAT. The VAT-registered customer will self-report UK VAT through their VAT return.
In preparation for these changes, please ensure that your Seller Central account details are up-to-date and that you continue to provide list prices that are inclusive of VAT for the marketplaces you list on.
The UK government is expected to publish the finalized legislation for these changes during Q4 of 2020. We are here to help you prepare for these changes, and we’ll keep you updated on any changes to current expectations. Refer to our Help page for the latest information: https://sellercentral.amazon.com/gp/help/external/GSF678GXLDTTTETZ.
Please also note that the above changes do not alter your VAT registration obligations. If you need help with VAT registration and filing in the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic, visit VAT Services on Amazon to sign up: https://sellercentral-europe.amazon.com/vat-registration/v2/index.html/vat-services?ref=eu_DR_VISALP#/welcome.
Thank you for selling on Amazon,
Amazon Services
11-16-20, 10:04 PM
#2
DVD Talk Legend
Re: New Rules for VAT @ AmazonUK?
For sure, no more ordering from European vendors for me, after 1-1-21.
Another e-commerce viability bites the dust. Fuck VAT. That's at least a 17.5% tax on all US orders from EU orders. And outrageous shipping charges. No way.
Another e-commerce viability bites the dust. Fuck VAT. That's at least a 17.5% tax on all US orders from EU orders. And outrageous shipping charges. No way.
11-16-20, 10:11 PM
#3
DVD Talk Legend
Re: New Rules for VAT @ AmazonUK?
Shitty news for UK customers, however, as there will be no exemption for low valued items. If it works like it does in Canada, you end up paying the VAT, as well as a collection fee. Nothing worse than paying a collection fee higher than the actual tax.
11-19-20, 10:18 AM
#4
Re: New Rules for VAT @ AmazonUK?
It seems the VAT is for those that are ordering items to be delivered to customers in the UK. If we, here in the U.S. are ordering items from Amazon UK to be delivered to the United States, the VAT will still not apply and it will be business as usual to us.
12-11-20, 10:39 PM
#5
DVD Talk Legend
Re: New Rules for VAT @ AmazonUK?
Yes, apparently, I missed the "living in the UK" part. So, it seems US orders *from* the UK will not be charged 17.5% VAT, but US orders *to* the UK will need to add the 17.5% exhortion surcharge. Sucks for UK customers.
12-12-20, 11:02 AM
#6
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Re: New Rules for VAT @ AmazonUK?
You scared me for a minute, I was wondering why the hell I should be paying VAT on Europe orders if I live in Canada, that would have sucked, I pay enough taxes as it is.. 
12-12-20, 11:05 AM
#7
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Re: New Rules for VAT @ AmazonUK?
Luckily that hasn't happened to me too often, it's random if you get dinged or not, because there isn't enough manpower for that to happen to every package coming into Canada (but it did happen once this past summer on a package I got from Europe). 
