Amazon VAT Rules Explained (after August 2024 Update) + New VAT Exemption Template (Amazon FBA UK)
ฝัง
- เผยแพร่เมื่อ 8 ก.พ. 2025
- Amazon VAT exemption will NEVER be the same again and you need to ACT NOW to avoid getting caught out by these recent VAT changes. Whether you are starting Amazon FBA or already sell on Amazon, you need to be aware of the latest Amazon FBA VAT updates that will have a BIG impact on your Amazon FBA Business.
In this video, we also discuss import VAT, how to calculate VAT on Amazon fees, when to become VAT registered, VAT on Alibaba samples, postponed VAT accounting (PVA) and the new VAT exemption email template you can use to contact Amazon Seller Support so you can activate automatic business invoicing and avoid IDR (Invoice Defect Rate) issues.
Over the past few years, there have been many changes to VAT regulation and the way Amazon implements these rules. Following Brexit, it became possible for Amazon FBA beginners to declare themselves VAT exempt and avoid paying VAT on Amazon fees. Unfortunately, with the latest Amazon VAT exemption changes from 1st August 2024, this loophole has been closed.
Previously, new Amazon sellers could avoid paying VAT on fees by declaring VAT exemption. Amazon invoiced the majority of fees from Luxembourg so under the EU reverse VAT system it was possible to avoid paying VAT.
From August 2024, Amazon started invoicing all fees from Amazon UK so now ALL Amazon sellers will be forced to pay VAT on all Amazon fees.
Here is the announcement from Amazon regarding Amazon VAT exemption changes:
"Effective August 1, 2024, Selling on Amazon, Fulfilment by Amazon, and all other services currently 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 currently referring to ASE, including Amazon Payments agreements, will be updated to AEU. Additionally, all invoices issued by Amazon will be issued by AEU instead of ASE after August 1, 2024.
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 deducted from Amazon fees. In the majority of cases, we expect that you will be able to recover this VAT through your normal VAT return process."
What do you think about Amazon VAT exemption being removed? Will it put you off starting Amazon FBA UK in 2024? Let us know your thoughts in the comments below! !
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Hello there, great video! I have a few questions:
- What software do you recommend for Amazon accounting? Xero?
- How do you pay VAT to the government? Is it done through the software every two months?
Very Helpful 👍
Hi good day and congrats for a really informative video. For a non UK resident amazon seller, VAT registration is mandatory or should he wait for the 85000GBP limit to hit before registering for VAT.
Thank You.
Hello, your videos are a great source of information to us as we are in the early stages of our FBA journey, after watching this latest video I was wondering if you could tell me whether or not we need to change the 20% VAT to 0% on the Amazon FBA calculator?
I'd like to know the answer to this as well
Thanks Darren for the great video, always thumps up mate. Please I have got a quick question. I've recently opened my Amazon UK selling account and I'm interested in doing wholesale. I started contacting distributors and wholesalers, but some of them require me to be a VAT registered, as I said I just jumped in Amazon world, so what is your advise her please, I really need to buy from those wholesalers. Shall I change from sole trader to company ltd and start the VAT registration process@ please help me, Thanks in advance.
Hi Darren,
Have you received August invoices from Amazon all correct? Lots of sellers complain they received incorrect invoices.
If Amazon deals with paying VAT on European Marketplaces how can I claim back import VAT paid on my goods sent to Europe?
Could you please explain how I can add someone from the UK to my non-UK business account ? Additionally, how does the 20% VAT apply in this case? Will the VAT be removed since the turnover is below £85,000, or is there another process?
If I am going to start FBA, do I need to register for VAT?
Hi there this did not work for me
Great vid