How to AVOID Paying VAT on Amazon FBA Seller Fees! (How to Declare Amazon VAT Exemption UK)
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- Опубліковано 6 жов 2024
- How Amazon sellers can declare VAT EXEMPTION and AVOID PAYING VAT on Amazon FEES. Follow this STEP BY STEP tutorial and Amazon will STOP charging 20% VAT on your Amazon FBA fees!
Amazon FBA beginners are usually unaware that Amazon should not be charging VAT on fees. As a result, they end up paying 20% VAT on Amazon fees for selling such as referral fees, fulfilment fees and storage fees.
The majority of Amazon fees are invoiced by Amazon Luxembourg, however, now the UK has left the EU they should not be charging VAT on digital services (VAT is still payable on PPC/sponsored ads as those invoices are sent from Amazon UK).
Amazons fees for most private label products are usually in the region of £5 to £10 per sale, so this simple change could generate an additional £1 - £2 profit per unit for Amazon FBA sellers.
After opening an Amazon seller account, the first thing you should do is declare your VAT exemption status and opt-in to automatic business invoicing. To do this there are two things you need to do:
1) Contact Seller Support using the email template shown in this video, this will stop Amazon from charging VAT on selling fees.
2) Declare your VAT exemption in Seller Central so that you opt-in to Automatic VAT invoicing, this will prevent any IDR (invoice defect rate) issues with business customers.
Both of these steps are essential for new Amazon sellers setting up an amazon fba account, so keep them in mind when you come to register to sell on Amazon UK.
If you have found this video helpful, you may want to check out the full FBA Elite Amazon training course here:
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If you are starting Amazon FBA UK in 2023 and want to know how to open an Amazon seller account, I would recommend this step-by-step tutorial:
• How to Open an Amazon ...
Have you been able to successfully declare Amazon VAT exemption or get an Amazon VAT refund? Let us know in the comments! !
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Darren, is it you that is contacting me - with a WhatsApp number for mentoring, or some chances?
Thank you
Thank you for you very helpful video. I have just one question, I made the mistake of registering for VAT with HMRC. You said that "now the UK has left the EU they should not be charging VAT on digital services". Does it mean I can be excluded from paying VAT still? Or the damage is already done and I need to pay VAT.
Thank you so much man. Absolutely no one talks about this. You're star!
Thank you very much! That took me 10 minutes to apply, to be exempt and everything! Awesome! Thank you!
Thank you. This was so helpful and I'm grateful you told me about this as no-one else mentions it.
Thank you Darren for another very helpful video,
I have been selling on Amazon FBA for about 3 years now and this is first time I hear about this little trick. It will save a heap of cash for sure.
I would love to see a video on how to claim VAT back on Selling Fees, I hope you'll make it soon 🙏
I have been watching your videos for a while now and I really appriacie your time and effort, great content
All the best👍
Excellent video - thank you. I would also suggest added IDR in your title somehow as was just as relevant as the VAT savings
Thank you Darren I find your videos more helpful than any others :)
Hi, just opening up an account and this is an amazing help. Hopefully you have more great videos.
Thanks
Great advice, thank you for sharing your tips. This is a game changer 🙏🏻
Tanks for this big help.🌹
Worked a treat for me!! Thank you Darren
Appreciated mate, really helpful and will save money for sure
Thank you so much for sharing this valuable information
Thank you very much Darren!! May God Bless you!
Hi Darren
Just wanted to say big THAN YOU for what you douing, im new on fba and I was wondering what is other charges in fba fees and could not find the answer why they charging me this fee, your video helped me a lot, is nice to see there are still some people that wont to help others insted just get a lot likes and subscritions. Thanks again .
could have just added the template in the description of the video or in the comment section
Thanks very much!
youve just helped me out. i just got my first warning. iwish i could donate a fiver or 10 for your advise.
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🔗 *LINK MY BOOKS* - Connect Amazon to your accounts - linkmybooks.com?fpr=fba-elite
Thanks alot for the info.
Amazing. I just got an email from Amazon Seller Central UK today telling me to register for VAT. This was invaluable!
Hi, could you please explain why they have told you to register for VAT as this video is about how to avoid paying VAT. Are you a soler trader and UK resident?. I am asking because i don't want to be told that i have to register for vat when i dont need to. Thanks
@@mariocoticelli1069 You'll need to ask Amazon why they told me to register for VAT. I didn't have to, that's why this video was so good.
This hasn't worked for me, I was sent an email saying..... We would like to inform you that we need you to provide one of the following documents for us to proceed with your request.
- Self Assessment issued by HMRC which clearly outlines you as a Sole Trader and the dates from which you were registered as one.(Be aware we cannot accept an UTR Letter)
OR
- Current Tax Return outlining your name and sole trader income.
We'll proceed with your case once we receive the requested information from your end.
😡
They said the same to me. How are you supposed to prove that when the company has been registered 1 week and no returns will be filled for a year! 🤦♀️ lol
Same issue, has anyone found a workaround for proof of being a sole trader from HMRC? All you have before your first tax return is the UTR letter. Which Amazon do not accept
Thank you Darren. Very helpful.
Many Thanks for this. Was useful.
Great explanation 👌
Super helpful video as always - gonna save many £££'s. One question - do you need to wait for Amazon to declare you as VAT exempt before automating invoices?
You forgot to click 'Add Atatchment' to attach the Certificate of Incorporation
That's really good information. Thank you.
Great video, really useful. Once you're VAT exempt but not VAT registered what should you set your SellerAmp VAT setting too?
Not applicable
thanks
Hello,
I think you are wrong about VAT.
All (almost) goods or services imported into the UK are subject to VAT.
Whether it's a brick or a fee for advertising services. In these particular cases, it is 20%.
Non VAT registered businesses cannot reclaim this from HMRC, VAT registered businesses can.
On the example of such a brick, I will explain it to you:
I have a company X in the UK registered for VAT, I buy bricks from the manufacturer for £0.90 excl.VAT. Selling them in the UK is £1 plus VAT, for a customer who buys this brick in my shop in the UK it is £1.20. Profit £0.10.
If I exported this brick to France to my company Y, I sell it for £1, no VAT. So I earn £0.10 from it.
After a week this French company Y exports the same brick to the UK for say £1.10 (Profit £0.10.) to my other company Z in the UK which has a turnover of less than £85000 and does not need to be VAT registered.
In the shop of company Z, I also sell this brick for £1.20. Profit £0.10.
Thanks to this, I could earn on this one brick not £0.10 but £0.30.
This is called a tax carousel.
again there is no URL bar so got no idea what help section you are on mate you click help there are options you don't jump straight to the page you are on
Thank you so much, much appreciated for the great advise and training on how to remove VAT.
7 star for quality advise, highly recommended to follow this video by all new seller.
Thank you again
Hi thank you for the video any infos on non uk residents can we do that as well
Another top Video Darren Thank you a lot, I will start soon to sell on AMZ as UK ltd, I will start selling in Italy as low competition than the UK, and then bring here my product, my company isn't registered with VAT should I do inform AMZ now as you showed us.
And before I reach 85K £ a year, inform again AMZ to make me pay the VAT and register my company as a VAT Registred?
Thank you Darren.
Great video, how does it then work once you hit the VAT threshold do you then contact them again to let them know to reapply the VAT fees?
Fab!
Life saver !!!!
I have this message
According to our records, you do not meet the Terms and Conditions of the VAT registration exemption. Consult your tax advisor to determine your EU VAT registration status and complete your tax settings.
Someone can advise me what to do?
as a sole trader how do I get a certificate of incorporation or proof of my UTR - thanks !
the VAT declaration page is at different place now lol
Hello, thanks for the information! Does this only apply to the UK? Or does it also apply to Amazon USA?
Hi Darren, your videos are very informative. As you shown i applied for vat exemption and received mail for them.. But when hoing to automate receipts it is not working and showing to declare VAT for EU and UK.. please help
Whereis part 2 you mentioned in the vid on how to claim the money back on fees already paid? I have followed part one and sent off to amazon, now waiting for the response.
Thank you 👍👍
What about once you do become VAT registered, do you have to contact them again?
Thanks for the help, do I pay VAT on all amazon advertising spend?
Kind regards
Can I do vat exempt on Amazon even I don't have vat registered number for my Ltd?
Can I do idr and have the vat exemption for the fees if I’m a vat registered company?
Thank you
Darren, do we have to submit this document each year?
I’m a sole trader and I tried this. They emailed back saying I need to provide a certificate of incorporation, or a explicit letter from HMRC, or a current tax return. They state they do not accept a UTR letter
Did you solve it? Havin the same trouble
Did you get this sorted?
Same problem. Does he ever respond on here?
Same here, UTR not acceptable as a sole trader. Can't find a way around it
Still haven’t found a work around
Hi Darren,do you now maybe does this apply on German market?Thank you
So was the previous videos info incorrect about non vat registered companies must pay Vat anyway?
Is there anyway to avoid marketplace facilitator vat?
Hello Darren, Thanks for the information I can not find the page where it says invoice defect rate when I'm putting it in the search bar on the right side of my page I get loads of information but I do not get the link where you have shown declaring their VAT exemption so I can not carry on further any advice.
HI, iv been paying vat for over a year. will i get some sort of refund?
I did this and now my MCF channel is blocked ?
How do you get template?
What is the process of creating a second seller account? Do we need to inform seller support that I need second account? Thanks
Darren, thanks again. Very interested in your company. Re VAT, I am voluntary registered but for mu music business (not e-commerce). If I go exempt on Alibiba do I have to charge VAT on my amazon stock? Thanks.
brilient technique, this vdo helful us
How can I get a vat refund for the lost profits?
Hello ! What about if i was vat registered since i opened my company(completely mistake) now i did deregistered . Works the same for vat exemption? Thank you!
Does this work even if im VAT registered?
Hi Darren, I’ve done this (I’m a some trader) and sent Amazon my UTR letter from HMRC. They are not accepting it and want proof I’m a sole trader and have requested a self assessment tax return which I haven’t done yet. Is there any other document I can give them to prove I am a sole trader?
So if you’re a seller selling from uk but also selling in eu countries like France Italy etc, you get an exemption too as your business is uk registered or do you have to pay vat as products might be stored in the eu countries ?
Hi Darren - is this for VAT registered companies or does this apply to non VAT registered aswell ?
He mentioned the sales threshold below £85,000 meaning it's only for non VAT registered company because a business cannot charge VAT from one EU country to another, including UK. The invoices issued to us, as UK sellers are from Luxemburg meaning we should not get charged VAT in the first place. This is my understanding of it from this video. I hope this helps.
@@techworld-lr2iv do it mean am also not paying 20% vat on selling price on revanue calculator !
Hi Darren this worked for me thanks alot now seller fees are vat exempt and they said theyll process a refund after this month has passed BUT do they give refund since i started amazon or just this month?
what letter did you supply to them?
My comment was remove ?
Can you start FBA account with no vat registered?
If you are in the UK sure, if you don't leave in the UK you are required by law to be vat registered and you will need to apply for vat BEFORE opening an Amazon account otherwise u will get suspended.
How come we can’t claim vat from ADs?
The PPC costs are invoiced from a different Amazon company to the other fees. One company is based in Luxembourg, the other is in the UK. This impacts the VAT treatment.
As a LTD company do i need to be VAT registered?
only when your revenue passes 85,000
Once approved do you stop getting charged VAT on your fees straight away as I have just been approved and still being charged VAT on my sales.
how did you attach your documnet from HMRC? i have sent of the same template but cannot attach a copy of my corprate tax letter.
Dont think it works for all now , you need to be a 'sole trader' and not LTD company to get VAT exemption now .
Yeah I have just found this out too. Very annoying
Did it last week and it worked as an LTD
@@lll.636 really did you just do this process? I sent the exact same message as in this video plus I sent in my companies house registration too
I registered as a Ltd company and they’re saying to be vat exempt I have to meet the criteria of being a sole trader ? I thought I could do this as a limited company