Amazon UK VAT Regulations: Important Updates

Amazon have posted an update in their UK Seller Central informing sellers as to their position under the new UK VAT legislation enacted on the 12th of September 2016.

Amazon say that “HMRC is tracking VAT compliance, and under UK law, Amazon is required to disclose to HM Revenue and Customs (HMRC) seller seller account data on request if HMRC believes a seller may not be compliant. Under the new legislation, HMRC can now inform websites such as Amazon Marketplaces if it believes a seller in in breach of VAT regulations and require that we stop the seller from selling through and that we remove the account“.

In other words at the first hint of trouble from HMRC, Amazon are going to shut accounts down, most probably because otherwise they themselves could become liable for any VAT evasion taking place.

Amazon specifically added advice for sellers based outside the EU but selling to UK customers and fulfilling orders from inside the UK. Most probably this is in response to the number of merchants around the world and specifically it would appear from China who are holding stock in UK warehouses and selling on Amazon’s marketplace.

Amazon added that “As per Amazon’s Terms and Conditions, seller on Amazon must comply with all applicable laws including VAT regulations“.