Amazon Announces Changes In VAT Treatment Of Fees
30th September 2024
Amazon has recently announced changes in the VAT treatment of fees that will significantly impact UK sellers.
What Used To Happen?
Previously, UK VAT-registered sellers only paid VAT on UK advertising fees which were billed from London. All other fees were billed from Luxembourg and generally fell under the Reverse Charge Mechanism.
What Happens Now?
However, since 1 August 2024, Amazon have been billing UK VAT-registered sellers for fees from inside the UK. The impact of this is that UK sellers are now charged VAT and will need to claim back this VAT on their VAT return going forward.
The fees that will be impacted will be:
- FBA Fees
- Storage Fees
- Seller Fees
- Advertising Costs
The grid below summaries the new VAT rates:
Get In Touch
For more information or advice, contact your local Whitings LLP office today.
Disclaimer - All information in this post was correct at time of writing.
