Are you a sole trader or a limited company selling on Amazon?
If you are, you have been paying 20% VAT ON TOP OF your Amazon seller and FBA fees.
Find out how you can save £000s by getting this VAT refunded! Keep Reading.
Amazon fees generally hover around the 15% mark, but for Amazon device accessories, you can be charged an eye-watering 45% of your cost when you sell on Amazon. On top of that, Amazon is adding 20% in the form of VAT!
Here’s an example of what we mean:
Say you’ve been trading on Amazon for the past Four Years as a non-vat registered business as you have always sold under the VAT threshold.
In that time, you’ve sold an average of £60,000 worth of goods (turnover) annually.
So, £240,000 turnover in that four-year period.
In that time, you potentially paid around £48,000 in Amazon seller and FBA fees.
If you are a business that’s NOT VAT Registered, then Amazon has been incorrectly charging you 20% VAT on these fees!
Based on the information above, if you’ve paid £48,000 in fees, you have OVERPAID £ 8,000 in VAT.
Now, imagine if you could get all that back; what would you do with it?
Invest in more stock, release another product line, invest in marketing?
The great news is that we’ve created a guide on how to get those fees back!
With this free template and guide, you can get Amazon to REFUND you that entire amount! PLUS, they will stop charging you 20% VAT on Amazon seller fees and FBA fees.
You do not even need to be VAT registered to do this; you just need a valid UTR for self-assessment or to sell under a limited company.
Let me give you another example of just how big an impact this can have:
Before doing this, you may have been selling an item for £100 with fees of £20 and a product cost of £50. Leaving you with a profit margin of £30, or 30%. Not bad (but it you’ll son see how much better it can be).
After doing this, when you sell that same item on Amazon for £100, your fees will now be £16.67, and your product cost £50. Leaving you with a margin of £23.33 (or 23.3%)
20% to 23% profit with a little bit of effort!
This is huge, and every seller should know this.
Save £000s on Amazon VAT without being even being VAT registered.
At Your Ecommerce Accountant, we make sure we know everything about the ecommerce VAT rules. When we reviewed the terms and conditions of the Amazon seller agreement, we found that only non-business sellers should be charged VAT and that if you are a sole trader or limited company (even if you are not VAT registered), you are EXEMPT from VAT on selling fees and FBA fees.
Click here to download your free guide
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.
Amazon Services Europe Business Solutions Agreement S-6(b) prior to Jan 2021
We asked one of our clients, who had been running a sole trader Retail arbitrage business on Amazon for around four years, to email Amazon seller support asking for a refund. All we did was point the seller support to their own terms and conditions.
We were surprised when they not only stopped charging 20% on fees but also refunded four years’ worth of seller fees. The client got back just under £12,000 from Amazon. With this working capital, they immediately bought more stock and made more profit.
Recommended article: Sole Trader vs Limited Company
We didn’t sit on this. We told EVERY single one of our clients to do the same thing and the results were astonishing.
“Just following up to say that my VAT refund request was successful and has been applied to the current disbursement for UK. The EU disbursements will be around the 20th of March and these are all listed as Others in seller central. Thanks so much again for your help on this!!!”
Limited Company Client
“Ben, they just sent me £13,230. I can’t believe it”
Sole Trader Client
“just to let you know you should see my Amazon refund coming into my account for £4,352. Thanks for letting me know”
Sole Trader Client
We have saved our clients over £500k. Probably millions if you include those who have used this free template
Since sending this guide out, we have saved our clients over £500,000 on Amazon fees (that we know of). This does not even include those who are not yet our clients but have downloaded and used this free guide—we could have saved Amazon sellers millions!
You can get these savings, too, without even being our client!
We want to demonstrate to ALL UK amazon sellers that we are the accountancy firm for them. Therefore we are giving away the guide we created for FREE, no strings attached. All you need to do is enter your email. Await the guide to be sent into your inbox. Within minutes you can be requesting your VAT refund from Amazon.
Click here to download your free guide
Recommended articles
- Change from Sole Trader to Ltd Company
- Retail Arbitrage vs Wholesale vs Private Label…
- How Much is Your Amazon Business Worth?
- All You Need To Know About VAT on Shopify
- How to Claim a VAT Refund on Amazon Seller Fees
- Can you sell on Amazon without VAT Registration?
- Are Charities or CICs Exempt From VAT?
- Do eBay Sellers Have To Pay VAT On Fees?
- How to Change from Sole Trader to Limited Company on Your Amazon Account
