IMPORTANT UPDATE: Amazon FBA VAT Rules Changing For UK Sellers!

[@LucaDavenport]

What do you think of these changes??

[@YuliyaYudenkova]

There is a company that sells on Amazon in the USA, UK, Germany. The company is registered in the USA. The owner received a letter from Amazon that since July 1, 2021, we have not paid VAT and it will be charged from us. Although we have been paying it all these years directly through accountants. What should we do? I will be grateful for the answer.

[@AmanUllahNawab]

Hi luca, I am non uk citizen and has registered ltd in uk and want to start amazone whole sale, so can you please tell me what would be the vat rule for me.

[@Justhunayn]

Thanks for your help man! You make things clear for the audience! Your channel is underrated 😊

[@LucaDavenport]

Thanks for your kind words!! 🙏

[@spacextreme1]

So I am a new seller. And probably not going to exceed 90k threshold. So I am still tax exempt from VAT on sales but not on VAT on the Amazon Platform fee. So Amazon doesn't charge VAT on my sales as its below 90k. But I pay VAT on fees of using Amazon. And when I do get VAT registered, Amazon fee will be zero but my sale will have VAT? Am I getting it right Great help. I got this email but did not understand.

[@LucaDavenport]

Yes that's correct! The only small difference to what you said is how VAT on fees will work once you are VAT registered. Once VAT registered, Amazon WILL still charge you VAT on their fees, however you can claim with back when doing your VAT returns. So from a profit calculation perspective, you do not pay VAT on their fees. However from a cashflow perspective, you do. Hopefully that makes sense.

[@shafimuhammad3124]

Sir I have brand name and logo and now I am try to apply for trademark registered so I don’t know how long it take but when my suppliers need FNSKU barcode for that I have to list on Amazon to get one but exemption from GTIN if I checkmark ✅ the box for product ID( i don’t have product ID) then they want a proof and I don’t know when the trademark registered complete so what should I do to get FNSKU to give to my suppliers can u plz help and pls reply thanks 🙏🏽

[@Asif-kh-n9r]

Hi Luca, thanks for the video. Im a new seller yet to sell and non VAT registered. Should i wait until next month to sell just so I won't be undercut by those that are VAT exempt?

[@LucaDavenport]

Nah, no point waiting. Just get started!

[@siiskaaa6]

Oh my 😮‍💨 A little confused, will there be a VAT on the Amazon fees only or on the products as well? (for not VAT-registered)

[@LucaDavenport]

Just the fees!

[@anuragnegi9636]

Hey Luca, as a non VAT registered company, what if i pass on the increase to customers - sure it will make it less appealing but if everyone is does it the profit margin will remain the same as before, correct ?

[@Asif-kh-n9r]

Yeah I'm also non vat registered. I'm guessing prices will go up across the board for everyone. Although I'm guessing the bigger sellers who have tons of cashflow will still be able to price lower.

[@LucaDavenport]

That is correct yes. Just bear in mind that VAT registered sellers profit margins will not be affected by this change, therefore only non VAT registered sellers will need to increase their prices to maintain margins.

[@ImRated]

So is it just the selling fees that they are charging VAT? Not the actual price of the product? Thanks

[@LucaDavenport]

Correct!

[@lll.636]

What if I claim VAT exempt after the 1st again.

[@LucaDavenport]

You can't / it won't make any difference

[@Luckibebstores]

Hi Luca I am trying to list my first product on Amazon each time I try my account get deactivated can u be my mentor or do u have any Dropshipping course I can join?

[@LucaDavenport]

Hey! I don't teach dropshipping I'm afraid but I do run an Amazon FBA private label training & mentorship program. You can check it out here: www.amazonbrandacademy.com/

[@Luckibebstores]

Okay I will check it out​@@LucaDavenport

[@Luckibebstores]

Have checked but At this moment I can afford the fees I am really struggling financially 😭

[@jamahmood1]

So what’s the work around? Should unregistered business register for vat?

[@xTechtional]

How does it work if my account is brand new and its tax exempt?

[@LucaDavenport]

Then you will loose tax exemption on 1st Aug

[@MianRehman143]

​@@LucaDavenport I am also an amazon seller and had VAT exemptions but now my profit is not saved due to new policy if i register VAT will amazon stop deducting this tax.?