Important VAT news: Changes on Sales to UK Customers from January 1, 2021, and request to review your business details by Amazon

Over the past month, Amazon has been e-mailing their third party sellers across all international platforms to let them know of an UK VAT rules change and request them to take appropriate steps in their accounts.

From January 1, 2021, Amazon will be responsible for collecting UK VAT on the following sales of goods delivered to customers in the UK where ordered through any Amazon storefront:

  1. Goods delivered from inventory stored outside the UK with a parcel value of up to £135; and
  2. Goods delivered from inventory stored in the UK, irrespective of value, where you, the selling partner, are not established in the UK.

Where either of these supplies take place, Amazon will calculate and collect UK VAT from the customer at checkout and remit this directly to the UK Tax Authorities.  You will not receive the UK VAT amount in your disbursements and will not be required to remit these amounts to the UK Tax Authorities.

It all sounds very similar to the Amazon Marketplace Tax Facilitator, which is the way how taxes are collected in the company’s US marketplaces.

Here you can view a screenshot of the e-mail announcement:

Here you can view the screenshot of a relevant notice in the Seller Central:

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