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Latest From Amazon UK about VAT and Brexit

This just in from Amazon UK:

Starting January 1, 2021, as part of Brexit, a new set of VAT rules will apply in the UK.

If you are delivering goods to UK customers from outside of the UK:
– The current VAT exemption for sales of goods under £15 will be removed. All of your sales of goods will now be subject to VAT.
– If the shipment value of these goods does not exceed £135, Amazon will be required to collect and remit the applicable VAT.
– If the shipment value exceeds £135, you will still have to remit VAT and any import duties yourself, as you are currently doing.

If you are delivering goods to UK customers from inventory stored in the UK, and your place of establishment is outside of the UK, Amazon will be required to collect and remit the applicable VAT. This will affect both sellers who use FBA in the UK and those who use third-party fulfilment methods.

If you are delivering goods to UK customers from outside the UK, and the customer is VAT-registered in the UK (B2B customer), Amazon will not be required to collect and remit VAT.  The VAT-registered customer will self-report UK VAT through their VAT return.

In preparation for these changes, please ensure that your Seller Central account details are up-to-date and that you continue to provide list prices that are inclusive of VAT for the marketplaces you list on.

The UK government is expected to publish the finalized legislation for these changes during Q4 of 2020. We are here to help you prepare for these changes, and we’ll keep you updated on any changes to current expectations. Refer to our Help page for the latest information: https://sellercentral.amazon.ca/gp/help/external/GSF678GXLDTTTETZ.

Please also note that the above changes do not alter your VAT registration obligations. If you need help with VAT registration and filing in the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic, visit VAT Services on Amazon to sign up: https://sellercentral-europe.amazon.com/vat-registration/v2/index.html/vat-services?ref=eu_DR_VISALP#/welcome.

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