brilliant info! I was sceptical that this would working knowing amazon but i followed your steps and after a couple of months effort have just got over £6k back from them! many thanks this was a great help!
That's great to hear. I got an email to say that they will refund me £5K but "Pending some external authorisation". Do you know what this means? Did you get this in the email? And how long from receiving the email did they refund?
Hey, there has always been a way to select ‘vat exempt’ in your settings but all that does is get Amazon to auto generate non vat receipts/invoices for each order. It doesn’t stop them charging you VAT on fees. Unless they’ve changed something recently.
Hi Luca......many thanks for sharing this information. I stumbled across your video and put in a claim in October last year. After a fair bit of prodding, I received £7,871.96 back in July 23, which was a real boost and all down to you and your very helpful post. 7,872 thanks to you my friend. Best wishes, Malcolm
Hi Malcom, great to hear! I too have had a claim with Amazon since October last year. Each week I get a generic update on the case with no new information. Did you escalate or do anything to get a response in the end? thanks
Hi Kris, I did nothing for about 6 months after the claim was submitted (word for word as Luca recommended) and then started pestering them and asking why it was taking so long. I got sick of the generic messages and just kept pestering them and in the end ..... 10 months after putting the claim in.....I looked at the amount I had in PAYMENTS and it showed almost £8k more than I was expecting. All thanks to Luca's post! It has to be illegal what they are doing and there is no way they are ignorant of the law, I think they just keep stalling in the hope we will give up. Can you imagine how much they must have made out of this?
I owe you more than a smile Luca.....seriously, thanks so much for posting this information. Your videos are excellent by the way. I have been plugging away at Amazon since 2016 and am getting there, albeit slowly.
Hi @@malcolmtopping1 did you reply to their generic emails or call them ? It has been 6 months for me too, and Amazon only send generic messages saying they are working on it..
Hi Luca, Fantastic video. I've applied for VAT return, lots of ping pong emails. Amazon are now requesting tax return the year I wish to claim for. I have this, but how would they determine how much VAT I had paid to HMRC from my tax return? Why would they require my tax return? Do they have a right to ask to see my tax return?
Hi, Brilliant Video exactly what I was looking for. One quick question - I started on amazon as a LTD company unregistered for VAT, then for a time became VAT registered and have since, become unregistered. I am thinking I use the first way of claiming but just add the dates, I was VAT registered in the email? Thanks again.
Hello, I tried this and they are now asking for > An explicit letter from HMRC (Her Majesty's Revenue and Customs) in their name confirming the status as a sole trader or Document of Self-employed issued by your local tax authority (UTR file is not accepted). > the last 5 years tax returns
Hey Luca, another great video. We have a Limited company so I attached our certificate of incorporation dated February 2017. Amazon would not accept this and said it had to be dated within the last 12 months.????????
Hmm that's very odd because that definitely isn't the case. It may just be that you've got a support agent who doesn't know what they are talking about. I would just open a new case and try again. Good luck!
@@LucaDavenport Hi Luca just wanted to thank you so much as after 4 months of back and forth and jumping through Amazon hoops I have just been refunded a 4 figure sum!!! cheers!!
Hi video is really interesting. Can I ask you if you can help with something else? . We are a UK sole trader selling les then £85,000 a year . We’ve been charged marketplace facilitator tax. Can we reclaim this as in affect with paying VAT that customers should pay abroad?. Help much appreciated
Hi Luca, I sent Amazon an email and proof of my UTR but the response I got stated I must be a limited company. This doesn't make any sense because thats not how it works, but I'm unsure how to proceed now as they're not accepting my documents. Any idea how to proceed?
Hi Luca, You just earned yourself a subscriber. I can't believe I didn't know about this! Just a quick question, regarding applying for a refund. My Amazon account was initially set up as an individual seller and I did a few £k's in revenue before incorporating my limited company and adding/changing this accordingly in Amazon. Will I be able to get a refund for selling fees before I set up the limited company when I was an individual seller?
I'm going through this process currently and amazon have said that they will only refund the last 4 years of VAT "...due to the Statute of Limitations that has been provided to us as a legally binding guideline for VAT refunds." However I've been selling with them 8 years - anybody managed to claim the full amount?
Unfortunately Amazon claim the VAT back from HMRC and HMRC has a 4 year Statute of Limitations rule, so Amazon also apply the same rule. Never heard of anyone getting around this I'm afraid!
Hi Luca, thanks for the good video. I heard the 85K threshold is for the Amazon total sales, not the actual company turnover (how much Amazon pay us), is it right?
If you only sell on Amazon, your total sales on Amazon is the same as company turnover. Company turnover means total sales the company has made, it has nothing to do with how much money actually comes into your business bank account. If you sell £50,000 in sales on Amazon, your company turnover = £50,000. So yes the £85K threshold is for total sales on Amazon (also known as turnover).
Hi Luca, Hope you are well. This video is very helpful, thank you for sharing it. As we are new to Amazon and our 85K threshold starts in July, can you please let me know how we can check in seller central if Amazon charged VAT before or after registered VAT? We also run PPC campaigns on Amazon, so if you could assist us in this regard, we would greatly appreciate it..
Hey, glad you found it helpful! You don't need to worry about whether they charged you VAT on PPC spend before becoming VAT registered as you cannot claim this back from them. You can only claim a refund for VAT charged on all other fees. To check this, go to Seller Central > Reports > Tax document library > There you will be able to view all of your fee invoices (including PPC invoices). You need to view the ones dates before you were VAT registered and check if VAT was charged on fee. Good luck!
Hi, Luca, Thanks this video is extreamly helpful. I have a question. I am now VAT exempt. In the process of getting the refund, however amazon are sayin the UTR letter is not enough. They want a tax return, but i have only been selling for 5 months not completed a tax year yet. Any advice?
OK, after 9 months of waiting. Amazon emailed to say they are refunding the VAT collected. However " it is pending some authorizations required by external departments." Does anyone know exactly what this means?
Hi Luca, thanks for this. Ive applied for this, but I have some issues. Im already voluntary registered for VAT flat rate, under my music business, so NOT eccomerce. This was their response.. "We have checked our internal data and found that you were VAT registered in UK with VAT ID 'GB*********' which is till active on HMRC database. Please obtain a "VAT De-Registration Certificate" by reaching out to the concerned government authorities." My certificate show its under my music name, should I show send that to them? Thanks alot.
Hi Luca, great video very clear and helpful thanks a lot. I do have an issue though as I have just passed the 85k threshold and am in the process of registering as ltd company. I understand that I am still VAT exempt until my company reaches 85k, but how do I communicate this with Amazon Seller Central please? Should have done this sooner :( Thanks for any help.
Hi Luca, thanks alot. I have subscribed. I did this, and I am now expect. Whoppe. Its been a month now. However, in amazons reply its says this "Please mention this case as reference and attach Certificate of Incorporation in the new case which you will create for refund" - So will your refund templet work or do I need a Certificate of Incorporation? I currently dont have one so does that voice this whole process? Thanks.
Question Luca if you are NOT VAT registers, but importing from outside UK and Europe do you have to pay VAT. Or same rational as non based Amazon service apply and you do not pay VAT on import ?
i have just yesterday managed to get £7k+ refund from them for this vat on fees. they would however only refund back 4 years, not the 7 years i have been selling with them. they say this is because they cannot claim back the vat from uk hmrc further than 4 years. this doesnt seem right to me, how can they time limit on refunding fees they should never have charged? but i dont have the knowledge to argue with them on this. any help or advice?
From my understanding Amazon will claim the incorrectly paid VAT back from HMRC then pay you. As they can only claim back up to 4 years from HMRC, they will only ever pay you back those 4 years. I've spoken with other sellers who have also had the same issue.
@@LucaDavenport seems very unfair. That their holding to a rule on a charge that was against the rules. The money was charged by them illegally, now they've profited and not refunded it all,I thought there were laws in the UK about gaining from illegal funds. I hope in the future someone with a lot more knowledge than me holds then to task 🙌
@@LS-zx1bz I am very frustrated with this. They had my UTR number and status as a sole trader more than 4 years ago and therefore had knowledge that I was a business. It seems like theft.
@@LS-zx1bz It's bizarre. How cases get dealt with also seems to be a lottery, largely to do with who picks up the case or randomly interjects and destroys any progress being made with the previous agent.
I have been a non vat registered sole trade seller since 2008 on amazon - last 10 years mostly FBA. I have applied to have vat removed from my seller fees and they have actioned this from May 2023. They have invited me to apply for refund after my tax status shows as a taxable person in my seller payments account. I am not sure how long amazon go back to but my accountant did not know anything about this?!!!
Most don't sadly! HMRC only allows them to go back 4 years, so you will likely receive a refund for all VAT paid on fees over the last 4 years. Good luck and glad I was able to help!
Hi Luca. Great video. I contacted Amazon and they stated that they could only refund the previous 4 years because of the HMRC VAT prescription period. Can you confirm if this should be the case. Thanks
I hate Amazon seller I have sold products on there and can't even transfer the money into my account I have shown evidence of proof of name and address by being forced to upload a new bank card then I was charged a pound a time to update the card now for 6 months I have had numerous off activated check card 4 times a month from Amazon I have complain to them but they still ignore the situation which now I've took it down to the legal route I cannot believe I sold products on Amazon can't transfer the money that I've made showed evidence and they keep going into my bank account doing stupid activated checks four times a month with no explanation
Hi Luca, thank you for the info. I have registered as PVT company to sell on Amazon, I haven't started selling yet nor I do have projection to sell more than 85k worth of goods in one year. However, I voluntarily registered for VAT number which obviously doesn't make sense as my business not going to cross 85k threshold. So, my question is before starting selling on Amazon can I drop them email to get an exception from VAT. Just a note - product imported from China however going to get import VAT applied to them at border clearance (the value of consignment is less then 10k pounds)
You don't need to email Amazon but instead you need to contact HMRC and de register for VAT. You can then de register on Amazon and remove your VAT number. Once you've done that, you can apply for VAT exemption on fees.
We applied for VAT, after 30days we got a questionnaire, 3 days ago we filled the questionnaire, now the question is when will we get the VAT Number, Kindly help
Hi Luca, thanks for the tips. I have gone through the process and things seem to be moving forward however SS email me almost daily saying that they're still working on it and that it may take some time. It's been around 3 months of this so far. Do you think this is normal or something has glitched somewhere? Thanks!
Hi Luca, great video. Starting my FBA journey and i have a question. Do you have be registered as a sole trader or ltd to apply for VAT exemption? if i was to continue without being registered does that mean ,by default, i don't have to pay VAT anyway?
To sell on Amazon you must be either registered as a sole trader or LTD company. You can’t not be either unless you are only planning on selling 1 or 2 items. Once you register as either, apply for VAT exemption straight away!
@@LucaDavenport ah, i was under the misconception that you don’t have to ACTUALLY be registered. Sometimes just need to someone to point out the obvious lol. So i dont have to be VAT registered then, as i will he under £85 k anyway
Hi Luca, Thank you for posting this. I followed your video on becoming VAT exempt, and Amazon gave me the date after which I could apply for the refund. I applied under the 'request a VAT refund' and they keep requesting further docs confirming Self Employment status from HMRC. I have sent them this letter (HMRC said it is the only one they send) and Amazon are saying this is not enough?
Thank you for the video, I have a question, what if im not UK resident, I sell and ship my products my self from Germany, and we got registered for uk VAT , which was a mistake because of inexperience.,we don't use FBA in amazon. what steps i would need to take ?because we had to pay a lot of VAT
Hi I would like to sell my Privat label items but theres no existing listings do I need to print Amazon barcodes I'm going to do FBM where I send the items myself I have not even made an account because I don't know what to do Thanks
Hi there! If you're looking for 1-1 support and full training on private labelling, you can checkout my training program here: www.amazonbrandacademy.com/
Thanks for informative Luca. Any idea or how am I going to find out whether Amazon Australia charge the selling fees from overseas or in Australia? By the way, I find out Amazon charge extra $2 FBA fees per item (large envelope > 250g) in one of my product. I got refund from Amazon, but they still insist that the product is more than 100g (my product with poly bag only 30g). I also have another product is 380g, but Amazon reply it was 480g (based on their shipping weight), but they charge me in higher fees under parcel for above 500g. I inquired it but Amazon refuse to answer. :(
Hey, so Amazons fulfilment fee is based on the 'shipped weight' of the product, which includes Amazons shipping packaging (envelope or box). That is likely why they are charging you at the higher rate
thank you so much! this is really helpful. I just started my Amazon journey just this March and registered for a LTD company last May. Can I request this now or should I wait for a year?
Hi Luca, Thankyou for very useful video. I opened a case with Amazon for VAT Exempt. My LTD company's registered address is different to my trading address on amazon. They are saying they can't give exemption until the addresses are the same. What should I do?
I was trading on Amazon from 2014 not registered for VAT. But I moved to the Isle Of Man in 2021, so can not provide details to complete the 1st step. How do I proceed?
@@slothy33711 Hi, yes each country in the EU has a different length, but you're correct the UK is 4 years. It turns out the Isle of Man and UK are treated the same for VAT purposes, so it seems to be processing ok.
Hey, glad you found it helpful! Normally just telling them in the email is enough proof for them to accept + they will see you do not have a VAT number attached to your account.
Having just gone through this process amazon are claiming they claiming that statute of limitations only allows them to refund the last 4 years rather than the full 10 years i have been trading. i can't find anything relating to this or any mention of this anywhere, is this amazon lying or is it correct that i can only claim 4 years?
After trading on Amazon FBA for 5 years. Due to the pandemic I stopped trading. I traded below £85k and still have my Seller Central account. Do you think I could still apply for VAT refund ? Many thanks. 🌷
every thing i found regarding this (including amazons own business services agreement) said they only need evidence you are in business however they asked me for SA302's for each year. easy enough to provide but was deifnitely an extra hoop just for the sake of it.
@@LS-zx1bz I cant provide this as i have only been selling for 5 months. Do you have a link to the part i can copy from what you found to add to my case please?
Hello, I have completed the first stage a month ago, and all was successful, Amazon stopped charging me the Vat on seller fees, I am now trying to claim back the VAT they owe me, I contacted seller central last night with the second template letter, they replied this morning asking for the certificate of incorporation, which I have, but they also have asked for a VAT refund certificate, I am not sure I have this, it does not seem to be on my Gateway id, but then again I am no longer VAT registered, do I send them my old VAT number, I de -registered for VAT In March this year? Thank you in advance
@@LucaDavenport Hi Luca. Thank you very much for the fast reply, I will give it a go, and report back on here how I am getting along, thanks again. Sara
Hi Luca, Amazon are trying to Avoid paying out. I have had my account changed and no longer pay vat on fees. I am a sole trader and registered since I started in 2008 and registered as self employed same day. I am a sole trader and registered with hmrc in my name and have same utc number since 2008. My store on amazon has a different name but i always submitted docs from hmrc and bank when amazon do periodic verification checks which have been fine. However - what amazon are saying now is they cannot pay me any refund as my hmrc sole trader name is my name and the payer name on amazon is my storefront name?! This is crazy - I will contact my accountant and HMRC but has anyone else had this problem claiming a refund. I absolutely hate amazon seller non support and just feel like they destroy your soul. Any advice Luca?
Sorry to hear that! I'm afraid I've not come across that happening before, so not really sure what to advise here. The store name shouldn't matter, what should matter is who owns the Seller Central account. So go to account details and see who owns it. If it is owned by you in your name, take screenshots and go back to Amazon showing this. If that doesn't work, try again and again until you get someone who knows what they are talking about. Don't let one support agent who doesn't know what they are talking about get it your way!
Just got a email back saying they are in the process of returning the VAT. Does anyone know how long it usually takes? They said “it can take some time”
Hi Luca, amazon are telling me they are looking to refund from when the company formed started in 2021 , should they be refunding when I first had a individual account, edit: they are asking for certificate to show when i opened the account
@@fonzyrelli Apologies, let me clarify! You can claim the refund all the way back to the date you were officially seen as a 'business'. This will be the date that you registered as a sole trader or LTD company. If you traded for a while before registering as a sole trader or LTD company, you can't claim a VAT refund for that period. Thanks
@@LucaDavenport Hi Luca. The issue I'm having is that Amazon received details of my UTR and being a Sole Trader back in 2016 but are only refunding back to 2018. I thought surely they should have stopped the vat on fees at that point in 2016. I've also heard some sellers having refunds date back further than the 4 years, so wondering whether it's just being applied arbitrarily.
@@minticecream4963 Nope! They will only stop charging you VAT if you specifically request it using the template provided. Which I agree, is very odd! From what I've seen with most of my students, is that Amazon will not refund past 4 years as HMRC will not refund them past 4 years.
Hi Luca, I told amazon I'm VAT exempt eligible they said because. I have notified them now they will wait till 16th of march so all the feb invoices are generated. Does that mean they will only give refund for February and not the previous months?
I’ve done the first step and in the email I had from seller central they said if I would like to get a refund on my VAT then get in touch with my Certificate of Incorporation, does this mean you have to be a limited company to get the refund you’re owed ?
Hey Ben, you shouldn't have to be. I would email back an explain that you are operating as sole trader not a LTD company and send them your UTR number as proof of business operation.
Hi, Luca thanks for the Video. Last year I opened my Amazon seller account then after a few months, I declared my VAT exemption status. When I was declaring, it didn't update that time but it was updated later automatically but I can't remember the date. IS IT OK TO ASK AMAZON TO GET A REFUND WITHOUT MENTIONING THE DATE OF THE VAT EXEMPTION STATUS UPDATED DATE? Like I want to send them an email saying " Can I get a refund before I declared my exception status" thanks
Hey! Declaring VAT exempt status to get Amazon to automatically issue receipts for orders is different from this VAT exempt status. However if it was this type of VAT exempt status you claimed, then yeah I'm sure that will be fine!
@@LucaDavenport Thanks Luca. I didnt know that ""Declaring VAT exempt status to get Amazon to automatically issue receipts for orders is different from this VAT exempt status."" I I send them an email just now saying that I am eligible for VAT Exemption and attached the company letter of incorporation also mentioning I want the refund since I started selling on Amazon. I will let you know what happens.
Hey Luca Yesterday Amazon approved my VAT Exemption. They also said """If you would like to request a VAT refund on the fees charged previously you will need to wait until the VAT invoices for June have been generated in your account because you have been charged for VAT up until today.""" So Shall I wait for the update June VAT Invoice or Shall I just open another case asking for Refund. Many Many Thanks to you. God bless you.
Hi Luca , Thank you for such helpful video .I am selling on Amazon Since 2015 . I stared from sole trader in 2015 and then got registered a company as I had to register for VAT .The same amazon account was then converted to a VAT registered company In 2020 . Now I have sent email to Amazon for VAT refund and got this below reply : Not sure if they will be refunding VAT since the account was opened in 2015 as a sole Trader account and then became a Vat registered limited comply account ion 2020 .Do you have any advice please .Thank you Hello from Amazon Selling Partner Support, My name is Kristina and I am glad to assist with your query today. I understand you are requesting VAT refund from 2015 - July 2020. We appreciate your association with Amazon and happy to assist you the best possible way. I have checked your acocunt and document. I would like to inform you that we can proce3ss refund 4 years back from the date of request ( July 2019 onward ) due to Statue of Limitations in the UK. If you need more information about Statute of Limitations, I will recommend you to contact your Tax Advisor or the Tax Authorities and they will assist you. In order to proceed with the refund we will require additional documentation. Kindly provide tax return document ( like Self Assessment Tax Return 2022.pdf you already provided ) for each year we are processing refund, 2019/2020/2021 and your VAT certificate as you have valid VAT number on the acocunt. Once we receive these documents, we will investigate eligibility for refund. I will keep this case open while we wait for your reply. I wish you a good day ahead. Thank you for selling with Amazon.
Hey, so what Amazon will do is apply for a VAT refund from HMRC and then pass that on to you. HMRC only allows VAT refunds over a 4 year period so they can only refund you from 2019 onwards. That is standard with this process.
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Wow I am owed over £10,000!!! Thank you much! Subbed
🙌🙌
brilliant info! I was sceptical that this would working knowing amazon but i followed your steps and after a couple of months effort have just got over £6k back from them! many thanks this was a great help!
That's great to hear. I got an email to say that they will refund me £5K but "Pending some external authorisation". Do you know what this means? Did you get this in the email? And how long from receiving the email did they refund?
That's what I like to hear!! Congrats :)
Thank you so much for this video! I just got refunded £5k.
That's what I like to hear, well done!! Glad I was able to help
@@melbubu just under a month
@@tomethelridge5562 did you chase them by email or call ? I’ve been waiting for 6 months. They only send generic emails saying it’s under process
Hey Luca, thank you so much! I followed your guide, jumped through amazon's hoops, and received a significant refund after about 4 months!
Amazing, glad the video helped!!
Did you chase Amazon or just leave it to them to refund you ? 4 months is great. I’ve been waiting for 6 months now..
@@melbubu keep chasing them
Nice 👍🏼 great content
I applied for my refund a few weeks ago so in the process of getting some money back 👌🏼
Awesome! Do you have any idea how much you are going to get refunded?
Thank you, I believe you can now change this directly from the account settings
Hey, there has always been a way to select ‘vat exempt’ in your settings but all that does is get Amazon to auto generate non vat receipts/invoices for each order. It doesn’t stop them charging you VAT on fees. Unless they’ve changed something recently.
Hi Luca......many thanks for sharing this information. I stumbled across your video and put in a claim in October last year. After a fair bit of prodding, I received £7,871.96 back in July 23, which was a real boost and all down to you and your very helpful post. 7,872 thanks to you my friend. Best wishes, Malcolm
Hi Malcom, great to hear! I too have had a claim with Amazon since October last year. Each week I get a generic update on the case with no new information. Did you escalate or do anything to get a response in the end? thanks
Hey Malcolm, this has put a smile on my face. Very glad to hear I was able to help you get such a tasty refund from Amazon!!
Hi Kris, I did nothing for about 6 months after the claim was submitted (word for word as Luca recommended) and then started pestering them and asking why it was taking so long. I got sick of the generic messages and just kept pestering them and in the end ..... 10 months after putting the claim in.....I looked at the amount I had in PAYMENTS and it showed almost £8k more than I was expecting. All thanks to Luca's post! It has to be illegal what they are doing and there is no way they are ignorant of the law, I think they just keep stalling in the hope we will give up. Can you imagine how much they must have made out of this?
I owe you more than a smile Luca.....seriously, thanks so much for posting this information. Your videos are excellent by the way. I have been plugging away at Amazon since 2016 and am getting there, albeit slowly.
Hi @@malcolmtopping1 did you reply to their generic emails or call them ? It has been 6 months for me too, and Amazon only send generic messages saying they are working on it..
Great video!
just found out im owed £4200!
Amazing, congrats man!
Thank you so much for this video Luca.
Many thanks for this vital information. Greatly appreciated 👋👋
Many thanks. You will help lot of people
This video has been amazing.
But I have a quick question AM is at a time in the only go back 4 years. HMRC say 10 years.
Any idea who is right?
I have always heard that it is 4 years from both Amazon and HMRC
I got back £1,500 from 9 months of trading! Thanks Luca.
Congrats!
How long did it take you for them to give you a refund?
@Liugreenslade how long did you wait to get refund ? Did you chase them ?
@@melbubu hi, see my response above. About a month. I didn't chase
Hi Luca, Fantastic video. I've applied for VAT return, lots of ping pong emails. Amazon are now requesting tax return the year I wish to claim for. I have this, but how would they determine how much VAT I had paid to HMRC from my tax return? Why would they require my tax return? Do they have a right to ask to see my tax return?
I know it’s a late response but they ask for it as proof that you earned less than the £85k threshold. Hope that helps
Hi, Brilliant Video exactly what I was looking for. One quick question - I started on amazon as a LTD company unregistered for VAT, then for a time became VAT registered and have since, become unregistered. I am thinking I use the first way of claiming but just add the dates, I was VAT registered in the email? Thanks again.
Hello,
I tried this and they are now asking for
> An explicit letter from HMRC (Her Majesty's Revenue and Customs) in their name confirming the status as a sole trader or Document of Self-employed issued by your local tax authority (UTR file is not accepted).
> the last 5 years tax returns
Hey Luca, another great video. We have a Limited company so I attached our certificate of incorporation dated February 2017. Amazon would not accept this and said it had to be dated within the last 12 months.????????
Hmm that's very odd because that definitely isn't the case. It may just be that you've got a support agent who doesn't know what they are talking about. I would just open a new case and try again. Good luck!
@@LucaDavenport Hi Luca just wanted to thank you so much as after 4 months of back and forth and jumping through Amazon hoops I have just been refunded a 4 figure sum!!! cheers!!
@@zammoboyCongrats! Glad I could help :)
@@zammoboy That's great news! Iam about to submit mine, what hoops did you jump through?
@@asterisknow2272 just follow Luca's instructions. If at first u don't succeed keep going.
Hi video is really interesting.
Can I ask you if you can help with something else? .
We are a UK sole trader selling les then £85,000 a year .
We’ve been charged marketplace facilitator tax. Can we reclaim this as in affect with paying VAT that customers should pay abroad?.
Help much appreciated
Hi Luca, I sent Amazon an email and proof of my UTR but the response I got stated I must be a limited company. This doesn't make any sense because thats not how it works, but I'm unsure how to proceed now as they're not accepting my documents. Any idea how to proceed?
Hi Luca, You just earned yourself a subscriber. I can't believe I didn't know about this! Just a quick question, regarding applying for a refund. My Amazon account was initially set up as an individual seller and I did a few £k's in revenue before incorporating my limited company and adding/changing this accordingly in Amazon. Will I be able to get a refund for selling fees before I set up the limited company when I was an individual seller?
Unfortunately not! You can only claim a refund from the date you became a business on Amazon.
This is very helpful Lucas, thank you very much. Please How do I request for the fees if I no longer sell on Amazon?
If you still have a Seller Central account, you can do it through there. If not, I'm not sure it's possible I'm afraid!
what do I send to amazon as proof of my UTR number please - thank you !
Man i needed this
I'm going through this process currently and amazon have said that they will only refund the last 4 years of VAT "...due to the Statute of Limitations that has been provided to us as a legally binding guideline for VAT refunds." However I've been selling with them 8 years - anybody managed to claim the full amount?
Unfortunately Amazon claim the VAT back from HMRC and HMRC has a 4 year Statute of Limitations rule, so Amazon also apply the same rule. Never heard of anyone getting around this I'm afraid!
Hi Luca, thanks for the good video. I heard the 85K threshold is for the Amazon total sales, not the actual company turnover (how much Amazon pay us), is it right?
If you only sell on Amazon, your total sales on Amazon is the same as company turnover. Company turnover means total sales the company has made, it has nothing to do with how much money actually comes into your business bank account. If you sell £50,000 in sales on Amazon, your company turnover = £50,000. So yes the £85K threshold is for total sales on Amazon (also known as turnover).
Thank you Luca for the explanation!
Hi Luca,
Hope you are well.
This video is very helpful, thank you for sharing it. As we are new to Amazon and our 85K threshold starts in July, can you please let me know how we can check in seller central if Amazon charged VAT before or after registered VAT? We also run PPC campaigns on Amazon, so if you could assist us in this regard, we would greatly appreciate it..
Hey, glad you found it helpful! You don't need to worry about whether they charged you VAT on PPC spend before becoming VAT registered as you cannot claim this back from them. You can only claim a refund for VAT charged on all other fees. To check this, go to Seller Central > Reports > Tax document library > There you will be able to view all of your fee invoices (including PPC invoices). You need to view the ones dates before you were VAT registered and check if VAT was charged on fee. Good luck!
Hi, Luca, Thanks this video is extreamly helpful. I have a question. I am now VAT exempt. In the process of getting the refund, however amazon are sayin the UTR letter is not enough. They want a tax return, but i have only been selling for 5 months not completed a tax year yet. Any advice?
OK, after 9 months of waiting. Amazon emailed to say they are refunding the VAT collected. However " it is pending some authorizations required by external departments." Does anyone know exactly what this means?
Great Video, Would this be the same for Ebay?
Hi Luca, thanks for this. Ive applied for this, but I have some issues. Im already voluntary registered for VAT flat rate, under my music business, so NOT eccomerce. This was their response..
"We have checked our internal data and found that you were VAT registered in UK with VAT ID 'GB*********' which is till active on HMRC database.
Please obtain a "VAT De-Registration Certificate" by reaching out to the concerned government authorities."
My certificate show its under my music name, should I show send that to them? Thanks alot.
Hi Luca, great video very clear and helpful thanks a lot.
I do have an issue though as I have just passed the 85k threshold and am in the process of registering as ltd company. I understand that I am still VAT exempt until my company reaches 85k, but how do I communicate this with Amazon Seller Central please? Should have done this sooner :( Thanks for any help.
Hi Luca, thanks alot. I have subscribed. I did this, and I am now expect. Whoppe. Its been a month now. However, in amazons reply its says this "Please mention this case as reference and attach Certificate of Incorporation in the new case which you will create for refund" - So will your refund templet work or do I need a Certificate of Incorporation? I currently dont have one so does that voice this whole process? Thanks.
Question Luca if you are NOT VAT registers, but importing from outside UK and Europe do you have to pay VAT. Or same rational as non based Amazon service apply and you do not pay VAT on import ?
Yes you do! Give this video a watch: czcams.com/video/sCeI-LRwMiA/video.html
Sorry, quick question, does this also applies to eBay
i have just yesterday managed to get £7k+ refund from them for this vat on fees. they would however only refund back 4 years, not the 7 years i have been selling with them. they say this is because they cannot claim back the vat from uk hmrc further than 4 years. this doesnt seem right to me, how can they time limit on refunding fees they should never have charged? but i dont have the knowledge to argue with them on this. any help or advice?
From my understanding Amazon will claim the incorrectly paid VAT back from HMRC then pay you. As they can only claim back up to 4 years from HMRC, they will only ever pay you back those 4 years. I've spoken with other sellers who have also had the same issue.
@@LucaDavenport seems very unfair. That their holding to a rule on a charge that was against the rules. The money was charged by them illegally, now they've profited and not refunded it all,I thought there were laws in the UK about gaining from illegal funds. I hope in the future someone with a lot more knowledge than me holds then to task 🙌
@@LS-zx1bz I am very frustrated with this. They had my UTR number and status as a sole trader more than 4 years ago and therefore had knowledge that I was a business. It seems like theft.
@@minticecream4963 it is theft. Ironically they're continuing to charge me vat on fees. It's Amazon. They will do what they like 🤦
@@LS-zx1bz It's bizarre. How cases get dealt with also seems to be a lottery, largely to do with who picks up the case or randomly interjects and destroys any progress being made with the previous agent.
I have been a non vat registered sole trade seller since 2008 on amazon - last 10 years mostly FBA. I have applied to have vat removed from my seller fees and they have actioned this from May 2023. They have invited me to apply for refund after my tax status shows as a taxable person in my seller payments account. I am not sure how long amazon go back to but my accountant did not know anything about this?!!!
Most don't sadly! HMRC only allows them to go back 4 years, so you will likely receive a refund for all VAT paid on fees over the last 4 years. Good luck and glad I was able to help!
Hi Luca, hope you are being well! Would like to know do you use anything accounting software to do the bookkeeping?
Yep, I use Xero and then Link My Books to connect Amazon to Xero. You can checkout Link My Books here: linkmybooks.com/?fpr=luca53
Hi Luca. Great video. I contacted Amazon and they stated that they could only refund the previous 4 years because of the HMRC VAT prescription period. Can you confirm if this should be the case. Thanks
Yep, unfortunately HMRC only allow VAT refunds going back 4 years
I hate Amazon seller I have sold products on there and can't even transfer the money into my account I have shown evidence of proof of name and address by being forced to upload a new bank card then I was charged a pound a time to update the card now for 6 months I have had numerous off activated check card 4 times a month from Amazon I have complain to them but they still ignore the situation which now I've took it down to the legal route I cannot believe I sold products on Amazon can't transfer the money that I've made showed evidence and they keep going into my bank account doing stupid activated checks four times a month with no explanation
Hi Luca, thank you for the info. I have registered as PVT company to sell on Amazon, I haven't started selling yet nor I do have projection to sell more than 85k worth of goods in one year. However, I voluntarily registered for VAT number which obviously doesn't make sense as my business not going to cross 85k threshold. So, my question is before starting selling on Amazon can I drop them email to get an exception from VAT.
Just a note - product imported from China however going to get import VAT applied to them at border clearance (the value of consignment is less then 10k pounds)
You don't need to email Amazon but instead you need to contact HMRC and de register for VAT. You can then de register on Amazon and remove your VAT number. Once you've done that, you can apply for VAT exemption on fees.
If you're not a UK resident. And you sell in UK, you HAVE to be VAT registered regardless whether you sell below or above the £85K
We applied for VAT, after 30days we got a questionnaire, 3 days ago we filled the questionnaire, now the question is when will we get the VAT Number,
Kindly help
Can the same be done in the USA, to claim back charges ie not VAT registered and USA/UK treaty Tax :)
Unfortunately I don't think so!
Hi Luca, thanks for the tips. I have gone through the process and things seem to be moving forward however SS email me almost daily saying that they're still working on it and that it may take some time. It's been around 3 months of this so far. Do you think this is normal or something has glitched somewhere? Thanks!
Yep, it can sometimes take a few months. Happened to many of my students. Just give it another month or two and should be sorted 👍
Hi Luca, great video. Starting my FBA journey and i have a question. Do you have be registered as a sole trader or ltd to apply for VAT exemption? if i was to continue without being registered does that mean ,by default, i don't have to pay VAT anyway?
To sell on Amazon you must be either registered as a sole trader or LTD company. You can’t not be either unless you are only planning on selling 1 or 2 items. Once you register as either, apply for VAT exemption straight away!
@@LucaDavenport ah, i was under the misconception that you don’t have to ACTUALLY be registered. Sometimes just need to someone to point out the obvious lol. So i dont have to be VAT registered then, as i will he under £85 k anyway
@@codeski_ Yep that's right!
Hi Luca,
Thank you for posting this. I followed your video on becoming VAT exempt, and Amazon gave me the date after which I could apply for the refund. I applied under the 'request a VAT refund' and they keep requesting further docs confirming Self Employment status from HMRC. I have sent them this letter (HMRC said it is the only one they send) and Amazon are saying this is not enough?
Hi im in the same situation. Very interested how you got on in the end?
Thank you for the video, I have a question, what if im not UK resident, I sell and ship my products my self from Germany, and we got registered for uk VAT , which was a mistake because of inexperience.,we don't use FBA in amazon. what steps i would need to take ?because we had to pay a lot of VAT
I'm afraid this only applies to UK based businesses
Hi
I would like to sell my Privat label items but theres no existing listings do I need to print Amazon barcodes
I'm going to do FBM where I send the items myself
I have not even made an account because I don't know what to do
Thanks
Hi there! If you're looking for 1-1 support and full training on private labelling, you can checkout my training program here: www.amazonbrandacademy.com/
Thanks for informative Luca.
Any idea or how am I going to find out whether Amazon Australia charge the selling fees from overseas or in Australia?
By the way, I find out Amazon charge extra $2 FBA fees per item (large envelope > 250g) in one of my product. I got refund from Amazon, but they still insist that the product is more than 100g (my product with poly bag only 30g).
I also have another product is 380g, but Amazon reply it was 480g (based on their shipping weight), but they charge me in higher fees under parcel for above 500g. I inquired it but Amazon refuse to answer. :(
Hey, so Amazons fulfilment fee is based on the 'shipped weight' of the product, which includes Amazons shipping packaging (envelope or box). That is likely why they are charging you at the higher rate
Hi Luca, Thanks for this video, can we apply for VAT refund paid on amazon advertising as well ? thanks in advance
No you can't I'm afraid!
thank you so much! this is really helpful. I just started my Amazon journey just this March and registered for a LTD company last May. Can I request this now or should I wait for a year?
I would request it now as it will instantly increase your profit margins by around 10%
@@LucaDavenport just did that! thank you so much!
I have shared your YT link to my fellow FBA sellers. Thank you once again for all your help!
@@JessieVida Glad it helped!
Hi Luca, Thankyou for very useful video. I opened a case with Amazon for VAT Exempt. My LTD company's registered address is different to my trading address on amazon. They are saying they can't give exemption until the addresses are the same. What should I do?
Hey, you just need to update your address on Amazon 👍
@@LucaDavenport ok Thank you 🙂
I was trading on Amazon from 2014 not registered for VAT. But I moved to the Isle Of Man in 2021, so can not provide details to complete the 1st step. How do I proceed?
I am 99% certain you can only claim back from 4 years ago.
@@slothy33711 Hi, yes each country in the EU has a different length, but you're correct the UK is 4 years. It turns out the Isle of Man and UK are treated the same for VAT purposes, so it seems to be processing ok.
What is the company name has changed? The name the certificate of incorporation will no longer be valid.
Just request a new one from HMRC with the updated details
hey great video. just a question how do i show them im under the 85k? they would know that right as they can see my sales
Hey, glad you found it helpful! Normally just telling them in the email is enough proof for them to accept + they will see you do not have a VAT number attached to your account.
@@LucaDavenport Perfect thank you.
so once register for vat and emailed amazon they will again charge me on vat?
Hi Luca is this only for the uk marketplace or worldwide ?
UK marketplace only
Having just gone through this process amazon are claiming they claiming that statute of limitations only allows them to refund the last 4 years rather than the full 10 years i have been trading.
i can't find anything relating to this or any mention of this anywhere,
is this amazon lying or is it correct that i can only claim 4 years?
Yep, I'm afraid that is correct. It is a rule set by HMRC, rather than Amazon and there's nothing you can do about that sadly!
After trading on Amazon FBA for 5 years. Due to the pandemic I stopped trading. I traded below £85k and still have my Seller Central account. Do you think I could still apply for VAT refund ? Many thanks. 🌷
Yep, I'm sure you can!
@@LucaDavenport . Thank you , they can either say yes or no . 😅😅 Have a productive day 🌹🌹
When requesting this, did Amazon ask you for a tax return as well? Thanks
every thing i found regarding this (including amazons own business services agreement) said they only need evidence you are in business however they asked me for SA302's for each year. easy enough to provide but was deifnitely an extra hoop just for the sake of it.
@@LS-zx1bz I cant provide this as i have only been selling for 5 months. Do you have a link to the part i can copy from what you found to add to my case please?
Hello, I have completed the first stage a month ago, and all was successful, Amazon stopped charging me the Vat on seller fees, I am now trying to claim back the VAT they owe me, I contacted seller central last night with the second template letter, they replied this morning asking for the certificate of incorporation, which I have, but they also have asked for a VAT refund certificate, I am not sure I have this, it does not seem to be on my Gateway id, but then again I am no longer VAT registered, do I send them my old VAT number, I de -registered for VAT In March this year? Thank you in advance
Hey Sarah, I would just get back to them and say that you don't have those documents as you are not VAT registered and that should do it.
@@LucaDavenport Hi Luca. Thank you very much for the fast reply, I will give it a go, and report back on here how I am getting along, thanks again. Sara
Hi Luca, Amazon are trying to Avoid paying out. I have had my account changed and no longer pay vat on fees. I am a sole trader and registered since I started in 2008 and registered as self employed same day. I am a sole trader and registered with hmrc in my name and have same utc number since 2008. My store on amazon has a different name but i always submitted docs from hmrc and bank when amazon do periodic verification checks which have been fine. However - what amazon are saying now is they cannot pay me any refund as my hmrc sole trader name is my name and the payer name on amazon is my storefront name?! This is crazy - I will contact my accountant and HMRC but has anyone else had this problem claiming a refund. I absolutely hate amazon seller non support and just feel like they destroy your soul. Any advice Luca?
Sorry to hear that! I'm afraid I've not come across that happening before, so not really sure what to advise here. The store name shouldn't matter, what should matter is who owns the Seller Central account. So go to account details and see who owns it. If it is owned by you in your name, take screenshots and go back to Amazon showing this. If that doesn't work, try again and again until you get someone who knows what they are talking about. Don't let one support agent who doesn't know what they are talking about get it your way!
Did they say will they're not paying you?
Just got a email back saying they are in the process of returning the VAT. Does anyone know how long it usually takes? They said “it can take some time”
In some cases it can take as little as a few days, however I have heard of it taking up to a few months in other cases
I have completed this, do you know any easy way to calculate the refund I will receive? @@LucaDavenport
Is this for the fba fulfilment fee and referral fees ?
its for any vat you have been charged on your selling fees.
Yep, all selling fees apart from PPC spend
Thankyou they have given me a date for refund around July
@@fonzyrelli the average I've heard people waiting is around the three months. Mine was bang on 3 months too x
For the refund Do I go back when I started the company or when I was on individual plan
How far back can you claim refund before the company formation on individual plan or when company started trading
All the way back from the date you opened your Seller Central account
Hi Luca, amazon are telling me they are looking to refund from when the company formed started in 2021 , should they be refunding when I first had a individual account, edit: they are asking for certificate to show when i opened the account
@@fonzyrelli Apologies, let me clarify! You can claim the refund all the way back to the date you were officially seen as a 'business'. This will be the date that you registered as a sole trader or LTD company. If you traded for a while before registering as a sole trader or LTD company, you can't claim a VAT refund for that period. Thanks
@@LucaDavenport Hi Luca. The issue I'm having is that Amazon received details of my UTR and being a Sole Trader back in 2016 but are only refunding back to 2018. I thought surely they should have stopped the vat on fees at that point in 2016. I've also heard some sellers having refunds date back further than the 4 years, so wondering whether it's just being applied arbitrarily.
@@minticecream4963 Nope! They will only stop charging you VAT if you specifically request it using the template provided. Which I agree, is very odd! From what I've seen with most of my students, is that Amazon will not refund past 4 years as HMRC will not refund them past 4 years.
Hi Luca, I told amazon I'm VAT exempt eligible they said because. I have notified them now they will wait till 16th of march so all the feb invoices are generated. Does that mean they will only give refund for February and not the previous months?
Yep, that's standard! They will refund you for all previous months including ALL of Feb.
@@LucaDavenport Thank you for confirming that.
I’ve done the first step and in the email I had from seller central they said if I would like to get a refund on my VAT then get in touch with my Certificate of Incorporation, does this mean you have to be a limited company to get the refund you’re owed ?
Hey Ben, you shouldn't have to be. I would email back an explain that you are operating as sole trader not a LTD company and send them your UTR number as proof of business operation.
I started selling in 2016 , got Vat registered in 2017. Am I too late to get the refund?
Yeah I'm afraid you are! They will only refund up to 4 years back.
Hi, Luca thanks for the Video. Last year I opened my Amazon seller account then after a few months, I declared my VAT exemption status. When I was declaring, it didn't update that time but it was updated later automatically but I can't remember the date. IS IT OK TO ASK AMAZON TO GET A REFUND WITHOUT MENTIONING THE DATE OF THE VAT EXEMPTION STATUS UPDATED DATE? Like I want to send them an email saying " Can I get a refund before I declared my exception status" thanks
Hey! Declaring VAT exempt status to get Amazon to automatically issue receipts for orders is different from this VAT exempt status. However if it was this type of VAT exempt status you claimed, then yeah I'm sure that will be fine!
@@LucaDavenport Thanks Luca. I didnt know that ""Declaring VAT exempt status to get Amazon to automatically issue receipts for orders is different from this VAT exempt status."" I I send them an email just now saying that I am eligible for VAT Exemption and attached the company letter of incorporation also mentioning I want the refund since I started selling on Amazon. I will let you know what happens.
Hey Luca Yesterday Amazon approved my VAT Exemption. They also said """If you would like to request a VAT refund on the fees charged previously you will need to wait until the VAT invoices for June have been generated in your account because you have been charged for VAT up until today."""
So Shall I wait for the update June VAT Invoice or Shall I just open another case asking for Refund.
Many Many Thanks to you. God bless you.
@@onlineuktest3763 Great news! Yes I would wait until after your last VAT invoice is generated before you apply for the refund
@@LucaDavenport Thanks Boss
Hi Luca , Thank you for such helpful video .I am selling on Amazon Since 2015 . I stared from sole trader in 2015 and then got registered a company as I had to register for VAT .The same amazon account was then converted to a VAT registered company In 2020 . Now I have sent email to Amazon for VAT refund and got this below reply : Not sure if they will be refunding VAT since the account was opened in 2015 as a sole Trader account and then became a Vat registered limited comply account ion 2020 .Do you have any advice please .Thank you
Hello from Amazon Selling Partner Support,
My name is Kristina and I am glad to assist with your query today. I understand you are requesting VAT refund from 2015 - July 2020. We appreciate your association with Amazon and happy to assist you the best possible way.
I have checked your acocunt and document. I would like to inform you that we can proce3ss refund 4 years back from the date of request ( July 2019 onward ) due to Statue of Limitations in the UK. If you need more information about Statute of Limitations, I will recommend you to contact your Tax Advisor or the Tax Authorities and they will assist you.
In order to proceed with the refund we will require additional documentation.
Kindly provide tax return document ( like Self Assessment Tax Return 2022.pdf you already provided ) for each year we are processing refund, 2019/2020/2021 and your VAT certificate as you have valid VAT number on the acocunt.
Once we receive these documents, we will investigate eligibility for refund. I will keep this case open while we wait for your reply.
I wish you a good day ahead.
Thank you for selling with Amazon.
Hey, so what Amazon will do is apply for a VAT refund from HMRC and then pass that on to you. HMRC only allows VAT refunds over a 4 year period so they can only refund you from 2019 onwards. That is standard with this process.