How to become VAT Exempted on Amazon UK Marketplace

Many sellers doing business on Amazon’s UK marketplace are trying to accomplish a VAT Exempted status on the platform. However, this can take a significant amount of time, energy and effort and involves communicating with the Amazon Seller Support.

This article will summarize you Amazon’s position and requirements.

In order to apply to become VAT Exempted on the Amazon UK marketplace, you will firstly need to meet all of the three conditions listed below:

  • You need to be a UK based seller.
  • You must be registered as a Sole Trader.
  • You need to be under the threshold of £85000.

Once you comply with all of the criteria above, you will need to open a case with the Seller Support and attach your Certificate of Incorporation.

Then, Amazon will evaluate your request and enable you into a taxable person for the purpose of VAT calculation on your seller fees.

Additionally, many sellers are also interested in a VAT refund. Unfortunately, Amazon will not reimburse you for any VAT incurred on past seller fee invoices, prior to the date when your status was set to VAT Exempted, unless you fight for it using templates and instructions available in Facebook groups – since Amazon doesn’t want you to know that you are also legally eligible for this. Many sellers already had success and if you need help, Vlad Coki will be soon preparing a guide.

Some proof that a VAT Refund from Amazon is achievable:

Here is a screenshot of a communication from Amazon regarding the matter with more information: