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Amazon faces VAT problems over resellers

Amazon’s has not been explaining if its third-party Marketplace resellers are VAT registered and it is costing business buyers.

Amazon’s has not been explaining if its third-party Marketplace resellers are VAT registered and it is costing business buyers.

Although Amazon provides VAT-inclusive prices for its own goods, products sold via Marketplace resellers can be listed either with or without the tax added depending on the company’s VAT status.

According to PC Pro  this has made it a lottery for buyers to know what the final price of goods will be.

Amazon is first stop for many UK SMEs and they are finding that the cost can be significant, and they cannot claim back the 20 percent VAT as a business expense.

Amazon does not make it obvious whether a reseller on the site is a big business or a small scale non-VAT registered trader. This puts some VAT registered resellers at a disadvantage as they might be touting the best final price, but this is not noticed by the buyer.

Amazon has declined to respond to inquiries about the situation and has been referring negative comments back to the resellers, saying that it has nothing to do with them.

One retailer said that in emails sent to him that Amazon.co.uk is claiming that it is not directly involved in the sale of merchandise between buyers and third-party sellers and cannot supply a VAT invoice for this order.

Inland Revenue officials say that if a reseller doesn’t charge VAT, the tax cannot be claimed back. But if a reseller is not VAT-registered, they wouldn’t charge VAT, so there is none to reclaim from them.

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One reply to Amazon faces VAT problems over resellers

  • On October 24, 2013 at 4:32 pm by Mark

    What about now when the 3rd party listing is both fulfilled by amazon and states all prices inc vat alongside?
    Currently in dispute with Amazon same as your example above but the listing stated prices inc vat, is this legal if not vat reg?

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