How To save £000s and Claim a VAT Refund on Amazon Seller Fees

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 can equate to up to 40% of your cost when you are selling on Amazon and on top of that, Amazon are adding 20% in the form of VAT!

An example:

Say you’ve been trading on Amazon for the past Four Years.

In that time, you’ve sold £30,000 worth of goods per year.

So, £120,000 over the four-year period.

In that time you’d have 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 top of these fees!

So based on the info above, if you’ve paid £48,000 in fees, that means you have OVERPAID £8000 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, 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, just have a valid UTR for self-assessment or be selling under a limited company.

Before doing this, you may have been selling an item for £100 with fees of £40 and product cost of £40. Leaving you with a profit of £20, or 20%. Not bad.
After doing this, when you sell that same item on Amazon for £100, your fees will now be £33, and your product cost £40. Leaving you with a profit of £27, or 27%.

20% to 27% profit with 5 minutes 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 your not VAT registered) you are EXEMPT from VAT on selling fees and FBA fees.

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 clients who was running a sole trader Retail arbitrage business on amazon for around 4 years, to email Amazon seller support asking for a refund and 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 they also refunded 4 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

We have saved our clients around £500,000 on Amazon fees since we started sending this guide out. This does not even include those who are not yet our clients but have downloaded 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.

Download your free guide below

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You Have Nothing to Lose & A Lot to Gain
Ben Sztejka ACA

Ben Sztejka ACA

We are a leading e-commerce accounting firm, focused on assisting UK and EU businesses in thriving online. With expertise in Amazon FBA, Shopify, Etsy, and eBay, we provide customised tax compliance and reporting solutions. Our team combines 10 years of experience as ICAEW chartered accountants with 15 years in e-commerce, offering unparalleled support to both e-commerce businesses and accountants.

Ben Sztejka ACA

Ben Sztejka ACA

Head Accountant & Director here at Your Ecommerce Accountant. Specialises in Ecommerce Accounting drawn from his own experience in Ecommerce and selling on marketplaces like eBay, Amazon & ETSY.

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