New UK rules for marketplace sellers
From 1st January, tax rules for Amazon sellers who are not established in the UK change. Online marketplaces will collect and remit VAT on your UK sales.
Do I need to be VAT registered?
- Probably, yes. If you import goods to the UK and go through customs clearance, you need a VAT number to be able to refund VAT paid at customs.
Can I use the flat rate scheme?
- No – for sales at OMP you cannot use a Flat rate scheme, since 1st January.
Can I refund the VAT paid at customs?
As you imported goods with a registered EORI number, you can get this money back when you have your C79 certificate. The C79 certificate is proof of the VAT sum you paid at customs. There are two main conditions to be able to credit VAT:
- You have a document that proves that VAT was paid (C79 or VAT invoice);
- Goods or services were used for taxable sales. As soon as your sales to Amazon are taxable (zero rates) you can credit VAT.
Can I get a refund on my foreign bank account?
No, at the moment you need a bank with a sort code to get a refund from the UK tax office. You need to give your account details to HM Revenue and Customs (HMRC) before you submit a VAT return with a sum to refund. We hope this rule will change, as more foreign companies will claim the VAT back.
How long does it take to get a refund?
From 10 days to 30 days.
Do I need to make changes to a filling process at the Lovat platform?
No, if you integrate your Amazon account with LOVAT, then all the changes will be available since 1st February 2021, when you can upload January data. You will see in your account VAT remitted by Amazon, and you can report all sums.
Is something changed to my B2B sales in the UK?
Not much. As your buyer has a valid GB VAT number, you need to issue a reverse charge VAT invoice, and report these sales without VAT – even though you have a GB VAT number.
For more information about managing tax obligations for online marketplaces, you can explore our API for online marketplace page.