VAT Refund on Amazon Seller Fees: A Comprehensive Guide for Success

If you’re looking at how to claim a VAT refund on Amazon fees that you’ve paid, I’m glad you’ve reached this page. In this article, I’ll be giving you all of the information required so you can reclaim the money that you’ve paid in fees.

You can only claim these fees back if you are not VAT registered.

The UK marketplace, particularly Amazon UK, has become an essential platform for businesses looking to expand their reach. However, navigating the intricacies of VAT reimbursement on Amazon seller fees can be challenging.

Amazon charges VAT on all of their fees until you can prove that you are a business entity. This is due to EU VAT regulations. Once you provide your VAT number to Amazon, they typically cease charging you VAT on your fees and resort to reverse charging the VAT.

But what if you are trading as a business entity but are not yet VAT registered? Should you simply accept the additional costs incurred due to Amazon charging VAT on their seller fees? Thankfully, the answer is no, and this article will guide you through the process of claiming your VAT refund.

Don’t leave money on the table, that you can claim back easily. It’s your money.

Who Can Reclaim VAT on Amazon Seller Fees?

As a seller on Amazon, if your business is based in the UK or the European Union (excluding Luxembourg), you may have the opportunity to reclaim the VAT paid on Amazon fees. This applies to various types of businesses, including sole traders, limited companies, B2B, and B2C sellers.

To successfully reclaim this VAT, your business should provide Amazon with evidence demonstrating that you are indeed in operation. Suitable evidence could be a recent corporate tax return or an official document issued by a government agency that confirms your business status.

Reclaim VAT Amazon

I claimed back over £1,400 of Amazon fees, which I had been incorrectly charged. It took some time for this, but it’s guaranteed to be accepted as you should not have been charged these.

Please note that having a VAT registration number is not mandatory for reclaiming VAT on Amazon seller fees. However, being VAT registered with a valid VAT number might prove helpful.

By following this process and once your provided evidence is reviewed and accepted by Amazon, you can avoid being charged VAT on related fees, granted your business is not established in Luxembourg.

Which Amazon Fees are Eligible for VAT Refunds?

You can claim a refund of VAT on fees billed by Amazon’s Luxembourg entity, which includes most fees except Sponsored Ads from the Amazon site specific to your business’s country. For example, if your business is established in the UK, you can reclaim VAT on all Amazon fees, except Sponsored Ads from Amazon.co.uk.

Please note, Amazon Sponsored Ads in your home country are generally billed with local VAT, even after providing your VAT number. Hence, they remain unaffected.

How to Secure a VAT Refund on Amazon Seller Fees

As a business operating on Amazon, even without VAT registration, you’re eligible for a VAT refund on any seller fees paid. Many sellers have successfully reclaimed this VAT by demonstrating their business status. Stay informed about VAT thresholds, Brexit implications, EORI numbers, and VAT treatment regulations to ensure compliance with UK VAT rules.

How to Reclaim VAT Paid on Amazon Fees

To reclaim the VAT paid on your Amazon seller fees, follow these steps:

  1. Contact Amazon Seller Support with a message requesting a refund of the VAT on your fees. Ensure your message is clear and concise, referring to the relevant Amazon Services Europe Business Solutions Agreement S-6(b) clause.
  2. Provide the necessary details to prove your business’s validity, including your Trading/Company Name, Tax ID (UTR or VAT number), and details of when you started trading on Amazon.
  3. Attach the appropriate documentation according to your business type:
    • For VAT registered Limited companies, attach your company certificate of incorporation, issued by the UK Government, and your VAT certificate.
    • For Non-VAT registered Limited companies, attach your company certificate of incorporation, issued by the UK Government.
    • For VAT registered Sole Traders, attach your Unique Taxpayers Reference (UTR) certificate from the Inland Revenue and your VAT certificate.
    • For Non-VAT registered Sole Traders, attach your Unique Taxpayers Reference (UTR) certificate from the Inland Revenue.
  4. Request that Amazon reclaims all VAT paid since your seller account was opened and ensures no further VAT is charged on your fees.
  5. Close the message with your name, title, and company name.

Adhering to the steps above and providing relevant documentation will help facilitate the process of reclaiming VAT paid on your Amazon fees. Be sure to review and maintain up-to-date information with Amazon to avoid any issues with HMRC or invoicing.

How Long Does the VAT Refund Process for Amazon Seller Fees Take?

The process of obtaining a VAT refund on Amazon seller fees typically spans between 1 to 3 months. During this time, Amazon may request additional evidence, such as company tax returns. It is crucial to collaborate with them and supply any necessary documents to ensure a successful refund.

Many sellers have mentioned experiencing a period of silence after submitting their cases, as Amazon deals with a backlog. It’s essential to remain patient and maintain confidence that your case is being handled by the appropriate team. Make sure to consider relevant aspects like VAT returns, imports, import VAT, and VAT refunds throughout the process.

Amazon VAT Refund Free Template

We have generated the perfect template to help sellers claim their VAT refund. Simply Copy, Paste and fill in the required parts. This will help you to claim your money back. We just ask one favour, let us know below how much you claimed! Here it is:

Subject: Request for VAT Refund – Non-VAT Registered Amazon FBA Seller

Dear [Support Team/Amazon Support],

I hope this message finds you well. I am writing to request a refund for Value Added Tax (VAT) that has been incorrectly charged to my Amazon FBA seller account. As a non-VAT registered seller, I should not be subjected to VAT charges on my transactions.

Below are the details of the VAT charges in question:

  • Business Name/Number for Amazon to check status with Companies House
  • Amount Charged: [Insert Amount Charged if Known]
  • VAT Amount: [Insert VAT Amount if Known]
  • Reason for Requesting Refund: I am a non-VAT registered seller, and I should not have been charged VAT on this transaction.

I have reviewed my Amazon Seller Central account settings to ensure that my tax information is correctly configured as a non-VAT registered seller.

Request: I kindly request a refund of the VAT amount mentioned above to be credited to my Amazon FBA seller account. Please initiate the refund process as soon as possible.

Supporting Documents (if applicable): [Attach any relevant documents, such as screenshots of your seller account settings indicating non-VAT registration.]

I understand that errors can occur, and I appreciate your prompt attention to resolving this matter. If you require any additional information or documentation to process this refund request, please do not hesitate to reach out to me at [Your Contact Email Address].

I look forward to your prompt response and the resolution of this issue. Thank you for your assistance in rectifying this matter.

Conclusion

I hope that this article has helped you to reclaim money that you shouldn’t have been charged in the first place. Feel free to copy our templates, to help you on your way.

Author
Tom P
Hi, I'm Tom Paddock! An Amazon & eBay seller, who has helped over 10,000 people start their own online business. I provide cutting-edge techniques to help sellers with Online Arbitrage, Retail Arbitrage & Wholesale on Amazon.
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