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How to Claim back a VAT Refund on your Amazon Seller Fees
Claiming a VAT refund on your Amazon seller fees is a frequently discussed topic among Amazon sellers. In this article, I will clarify why you might be able to claim back any VAT that you’ve paid on your Amazon fees and exactly how to do it.
Amazon usually charges VAT on all of their fees until you can prove that you are a business entity. This is due to EU VAT regulation. Once you provide Amazon with your VAT number they typically stop charging you VAT on your fees and instead reverse charge the VAT on them.
But what happens if you are trading as a business entity but you are not yet VAT registered?
Should you simply accept the extra costs that you incur due to Amazon charging you VAT on their seller fees with you not being able to then reclaim that VAT from your tax authority?
The short answer is no.
Who can claim back VAT paid on Amazon seller fees?
If you’re selling on Amazon and are established as a business in the UK or the EU (excluding Luxembourg) then you may be able to claim back any VAT you have paid on Amazon fees. Amazon themselves have referred to this in an older version of their Business Solutions Agreement:
| Amazon Services Europe Business Solutions Agreement S-6(b) prior to Jan 2021 If you are in business and established in a European Union country, but you do not have a VAT registration number issued by one of the European Union countries, then you will be able to provide Amazon with other evidence that you are in business. Acceptable evidence is a copy of a recent corporate tax return or an official document issued by a government agency proving that you are in business. Once your evidence is reviewed and accepted by Amazon, VAT will not be charged by Amazon on the fees hereunder provided you are not established in Luxembourg. |
Which Amazon fees can I claim a refund of VAT on?
Any fees invoiced from Amazon’s Luxembourg entity. This is typically all fees except Sponsored Ads in the country where your business is established. Eg. if your business is established in the UK then you should be able to reclaim VAT on all Amazon fees excluding Sponsored Ads from Amazon.co.uk.
Amazon sponsored Ads in your home country are usually billed with local VAT even after you have provided Amazon with your VAT number (once you become VAT registered) so those are not affected.
How do I qualify for a refund of VAT on Amazon seller fees?
If you can prove that you are a business (even a non VAT registered business) then you qualify to have any VAT you have paid on Amazon fees refunded. It’s that simple. From success stories that we have heard about in the Facebook groups this has been successfully done by hundreds of sellers.
What do I need to do to reclaim the VAT paid on Amazon fees?
The table below shows a summary of the actions you should take to reclaim any VAT you have paid on Amazon seller fees.
| SOLE TRADER | LIMITED COMPANY | |
| VAT REGISTERED | Open a case with seller support, state you are a business and reference the terms. Provide trading name, VAT certificate and UTR. State the period you were non VAT registered and request a review and refund of VAT on fees for this period. | Open a case with seller support, state you are a business and reference the terms. Provide your certificate of incorporation and VAT certificate. State the period you were non VAT registered and request a review and refund of VAT on fees for this period. |
| NOT VAT REGISTERED | Open a case with seller support, state you are a business and reference the terms. Provide trading name and UTR. Ask them to stop charging you VAT on your fees and request a review and refund of VAT on fees for the time you have been trading. | Open a case with seller support, state you are a business and reference the terms. Provide your certificate of incorporation. Ask them to stop charging you VAT on your fees and request a review and refund of VAT on fees for the time you have been trading. |
What to Message Seller Support?
Amazon seller accounting doesn’t need to be complex. In each of the above scenarios your message could read something along the lines of:
| Dear Seller Support Our business would like to request a refund of the VAT we have paid on Amazon fees please. According to the Amazon Services Europe Business Solutions Agreement S-6(b): “If you are in business and established in a European Union country, but you do not have a VAT registration number issued by one of the European Union countries, then you will be able to provide Amazon with other evidence that you are in business. Acceptable evidence is a copy of a recent corporate tax return or an official document issued by a government agency proving that you are in business. Once your evidence is reviewed and accepted by Amazon, VAT will not be charged by Amazon on the fees hereunder provided you are not established in Luxembourg. You hereby give the following warranties and representations, namely: (i) that the evidence you submit to Amazon belongs to the business you operate, and that business is established in one of the European Union countries; (ii) that all transactions regarding the services will be business-related transactions made by the business associated with the evidence you submit to Amazon; and (iii) that the evidence and all other information provided by you is true, accurate and current and you will immediately update any such information held by Amazon in case of any changes.” Please find below details that you can use to establish that we are a valid business: Trading/Company Name: Tax ID (UTR or VAT number): Trading on Amazon since: Attached is our company certificate of incorporation, issued by the UK Government and VAT certificate. [For VAT registered Limited companies only] Attached is our company certificate of incorporation, issued by the UK Government. [For Non VAT registered Limited companies only] Attached is our company Unique Taxpayers Reference (UTR) certificate from the Inland Revenue and VAT certificate. [For VAT registered Sole Traders only] Attached is our company Unique Taxpayers Reference (UTR) certificate from the Inland Revenue. [For Non VAT registered Sole Traders only] Please could we reclaim all VAT paid by our company since our Amazon Seller account was opened and ensure that no further VAT is charged on our Amazon fees. Kindest regards Your Name Title at company Company Name |
Remember to use the relevant line for your business type regarding the documentation you will attach, and don’t forget to attach the documentation either.
How long does it take to get a refund of VAT paid on Amazon seller fees?
Once you submit your case to claim the refund of VAT paid on Amazon fees it usually takes anywhere from 1-3 months to be actioned. Amazon may come back and ask for further proof in the form of company tax returns or such like. Work with them to provide any details and documents they need (it will all be worth it in the end).
According to some sellers we have spoken to, Amazon confirmed they have quite the backlog of these cases so once your case gets to the right team you may notice that it goes quiet. This looks like they are simply working through the backlog so be patient.
Other Common Amazon VAT Refund Questions
How does claiming a VAT refund on Amazon seller fees impact my financial reporting and balance sheets?
Claiming a VAT refund reduces your expense on Amazon seller fees, positively affecting profit margins. This must be accurately reflected in financial statements, with the refund recorded as a receivable in the balance sheet until received, thus impacting your current assets.
As a non-EU business selling on Amazon, am I eligible for any similar refunds or tax benefits on Amazon seller fees?
Non-EU businesses’ eligibility for refunds or tax benefits on Amazon seller fees depends on their country’s tax laws and international tax agreements. Consult a tax professional for guidance specific to your business location and for identifying potential tax benefits.
What to do if you have any questions related to getting your VAT refund from Amazon?
If you are an Amazon Seller looking for free help with any Amazon related issues from me or other sellers with whom you can network, don’t hesitate and join our discussion forum for Amazon Sellers.
To stay in touch on Facebook, feel free to join and post into my large Amazon Seller Performance – Friendly Advice – Worldwide Facebook group, where you will be very welcome too.
If you would like to hire me to privately assist you, feel free to subscribe and reach out through my dedicated assistance page at www.onlyfans.com/kikaangelic, where I provide support with Amazon related matters in exchange for a small $24.99 fee. Alternatively, you can post into the free public discussion forum for Amazon Sellers, where I will answer your question.
Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!
Additionally, here you can watch my YouTube video, where I am presenting you several secret tips about appealing Amazon Seller Account suspensions (don’t be confused by the opening of the video, where I am enjoying a vacation – it’s a part of the story):
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