I have been charged incorrectly Marketplace Facilitator tax
I am a seller based in the UK, with my company registered and operating within the UK. I am a UK citizen, and my business is declared VAT exempt by Amazon. However, I am being incorrectly charged the Marketplace Facilitator Fee on all my orders.
For all my orders, Amazon provides the following message:
Marketplace facilitator order (legislation: UK VAT on eCommerce): Amazon is collecting VAT on this transaction. This is a marketplace facilitator order, and hence VAT is being collected and remitted to the tax authorities by Amazon. Your net proceeds will not include VAT for marketplace facilitator orders. Please visit the Tax regulations help page for additional information.
I have verified that all my products are delivered within the UK, so I don't understand why VAT is being charged on these transactions. I have been charged approximately £213 in VAT on these orders, which impacts the profitability of my business.
A few days ago, Amazon sent me an email expressing doubt about whether we are based in the UK. I opened a case with them, and they requested proofs, which I submitted. After that, they sent me an email stating
Thank you for your submission. Based on a review of your account and the information provided, we have completed our verification of your establishment for Value Added Tax (VAT) purposes.
How can we make a profit on Amazon if we are paying VAT incorrectly charged to our business?
I have been charged incorrectly Marketplace Facilitator tax
I am a seller based in the UK, with my company registered and operating within the UK. I am a UK citizen, and my business is declared VAT exempt by Amazon. However, I am being incorrectly charged the Marketplace Facilitator Fee on all my orders.
For all my orders, Amazon provides the following message:
Marketplace facilitator order (legislation: UK VAT on eCommerce): Amazon is collecting VAT on this transaction. This is a marketplace facilitator order, and hence VAT is being collected and remitted to the tax authorities by Amazon. Your net proceeds will not include VAT for marketplace facilitator orders. Please visit the Tax regulations help page for additional information.
I have verified that all my products are delivered within the UK, so I don't understand why VAT is being charged on these transactions. I have been charged approximately £213 in VAT on these orders, which impacts the profitability of my business.
A few days ago, Amazon sent me an email expressing doubt about whether we are based in the UK. I opened a case with them, and they requested proofs, which I submitted. After that, they sent me an email stating
Thank you for your submission. Based on a review of your account and the information provided, we have completed our verification of your establishment for Value Added Tax (VAT) purposes.
How can we make a profit on Amazon if we are paying VAT incorrectly charged to our business?
7 yanıt
Seller_76AUwmqvSyRIM
As you have noticed, Amazon do make mistakes when determining VAT establishment.
There must be something in your details that has triggered something and one of their poorly trained staff or bot has said no.
Do you use a virtual address maybe? Foreign passport or company director? Your company details on companies house match Amazon details? Something else? Once you are able to work it out, you should be able to resolve the problem, assuming you are genuine.
Sarah_Amzn
Hello @Seller_ytba8S4NIm5QG,
I'm Sarah with Amazon.
Have you tried to reach out to Seller Support about this issue? If yes, could you please share the case ID so I can take a look?
Kind regards,
Sarah.
Seller_1syvcNLgfJWxx
hi, please may i ask if you fixed this issue? i am going through the same issue and nothing i do is solving it.
Seller_WjolqosvsmaiL
Have you had any success with this issue?
I am going through the same and it is incredibly difficult to continue operating my business...
