Save Thousands on Amazon FBA UK Selling Fees!

Save Thousands on Amazon FBA UK Selling Fees!
Not many people know this but if you're operating as a non-VAT registered business in the UK, either as a sole trader or LTD company, there is a super simple way to stop Amazon charging you VAT on their FBA selling fees!
Doing this one simple thing will instantly increase your profit margins by 5-10% and will save your thousands of pounds in fees! In this video I'll walk you through the super simple process, step by step.
Apply for a VAT refund: • Amazon Are Refunding T...
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[@LucaDavenport]

🚀 AMAZON FBA TRAINING & MENTORSHIP PROGRAM: bit.ly/3rr9bNy 🎥 FREE AMAZON FBA TRAINING: bit.ly/3O4ortk 📞 Book a 1-1 Coaching call with me: bit.ly/3pWCbPk

[@gee3883]

Top man, subbed.

[@turtleneck93]

Thanks a lot buddy. Very useful😃

[@naz6287]

Thanks for your help.

[@markspencerfpv]

Thank you so much this will really help. Quick question, does the add tax button dissappear when you've added a product to your inventory and checking the fees?

[@nithiyanandankuppusamy5366]

Thanks Luca. We got approval for VAT exemption today. Thank you so much for your help. We were not even aware of this before. Your videos are really helpful. Your videos clarify the specific topics without a doubt. Thanks

[@LucaDavenport]

Really glad I could help!

[@nithiyanandankuppusamy5366]

@@LucaDavenport Hi Luca, we have received our VAT refund today. Thank you again for your help. You are doing a great job by guiding us. Thanks

[@markspencerfpv]

Hey, can you explain what happens once you're approved? Do you just not click the add tax button when checking your fees? Or does the button disappear?

[@nithiyanandankuppusamy5366]

@@markspencerfpv Hi, sorry for the late reply. The button didn't disappear but when we clicked on it, VAT was appearing as zero. Hope it helps

[@markspencerfpv]

@@nithiyanandankuppusamy5366 excellent, thanks a lot

[@blacckz]

Thanks thats helpful

[@mwda-k4n]

Thanks for this, after this is done, whats the new way of calculating fees?

[@friendsofnature2363]

Just a quick note on this . I have been asked for a letter from HMRC explicitly stating my status as sole trader as long as UTR number, so you will need both

[@Siggipugger]

Did you get this letter from HMRC? It isn't really something they normally provide.

[@muhammadjamil4223]

Do a video on product paten design please . Too much confused that from where i can do it and how

[@jackiengarame4300]

Thank you so much. I have subscribed 😂

[@ShaunMitchell-wj7vj]

Hi does this count even when you list products and add european markets to help with the sales? Many thanks

[@tinathegreat88]

This is very helpful, thank you. Still on the fence about registering as a sole trader or limited company to start selling on Amazon, do both require having an EORI number?

[@LucaDavenport]

If you’re serious about selling on Amazon, I would recommend LTD as it’s more tax efficient. Yep, you need an EORI number either way.

[@tinathegreat88]

@@LucaDavenport thank you 😊 🙏

[@astar3308]

Hi, does this goes to uk limited company amazon should not take vat from limited just as sole account?

[@KingsdownRoots]

Thanks Luca - within 10 minutes I got this approved by Amazon, really works. Just wished I hadn't waited until I got to £70k before seeing this fml...

[@LucaDavenport]

Glad it helped! You can actually request a VAT refund for all the VAT paid up until now. I have another video on how to do that on my channel 👍

[@KingsdownRoots]

@@LucaDavenport wow, thanks, I’ll check it out 🙏🏼 - subbed too btw

[@BlockOUTdaPAIN]

Hi, where are you able to check that amazon has stopped charging vat on the seller fees? Or is this something automatic and we just trust amazon.

[@Ali-jq9rx]

Great video. I have a current listing which I created without a gs1 barcode, I’ve got a registered trademark and id like to change the brand name on the listing , do you think this will cause an issue with amazon , the reason why I’m trying to change brand name is to remove the hijackers

[@LucaDavenport]

You will have to request it through Seller Support, however they often refuse brand name changes.

[@ThisIsAHandle.]

Email sent 🤞🤞 Thanks for a great informative video. VAT confuses me 😩

[@LucaDavenport]

Good luck!!

[@user-bs5ep9je2o]

How do I obtain the certificate of my UTR NUMBER

[@wgal1562]

Hi Luca, thanks so much for your video. One of the criteria is Based in UK, if the seller based in other country and send the product to FBA UK, is the seller eligible for this VAT exemption? Thank you.

[@LucaDavenport]

Unfortunately not! The sellers business must be based in the UK

[@wgal1562]

@@LucaDavenport Thank you very much for your reply!

[@isminikrassismenou9605]

Hey Luca. I’m trying to sort out my Amazon shipment with their logistics but they say I need an IOR which needs VAT & EORI number. How do u do this? Is there a way around it?

[@LucaDavenport]

Hey! What country are you importing into?

[@DANIELJC.12]

Thank you 😊! What about refunds on say quarter of a million £ total turnover - worth trying ?

[@LucaDavenport]

Yep, 100%!

[@DANIELJC.12]

@@LucaDavenport thanks, just in the process with a bit more to get the ball rolling here as not traded since 2017, is there a time frame for claims ?

[@rangadon]

We are a LTD company, this is the reply I got from Amazon, ‘’ In order to be VAT exempted for UK marketplace you must meet the following criteria: -U.K. based Seller -Must be registered as a Sole Trader -You are under the threshold of £85,000 Please be advised; to verify if you are VAT exempted, we require: If you are a Sole Trader - An explicit letter from HMRC (in your name name) confirming the status as a sole trader or self-employed or -A copy of your latest yearly tax return filed in your name, including the pages where the sole trader income as been reported If you are established as a company: -A Certificate of incorporation issued by local tax authority. ‘’

[@LucaDavenport]

So that is total rubbish, you can be a LTD company. Not sure why they have said that to you! Just open a new case with them and hopefully you get a support agent who knows what they are talking about this time. Can sometimes take a few goes but it's worth the wait.

[@lawglobal_advocates]

Hey Luca. What if I am not a UK resident but my company is registered in the UK and not VAT registered?

[@LucaDavenport]

You should be fine if the company is registered in the UK

[@Benn2001]

Great video 😊 what's a UTR number please?

[@friendsofnature2363]

UTR is a 10 digit numbers that you get from HMRC that shows your are a sole trader

[@AdorableYou-HealthandFitness]

As a VAT-unregistered sole trader based in the UK, do I need to pay VAT on my monthly professional account fees of 25 pounds?

[@eemiila]

Same here ..

[@xhamez876]

I tried and provided a letter from HMRC with my UTR and they said they don't accept it as per their guidelines. They requested 1 of 2 things, a self assessment certificate which HMRC themselves haven't heard of or my latest tax returns which I also don't have because I've been a sole trader for less than a year 😢

[@shaanio]

Since the Amazon establishment is in Luxembourg, does that mean they cannot charge a UK company VAT on all selling fees indefinitely? Or can they start charging it once we're VAT-registered (but then of course, we can claim back the VAT)?

[@LucaDavenport]

Then can when you are VAT registered, however when your VAT registered you claim back all VAT on expenses and this includes all Amazon fees. So no, you will not effectively pay any VAT on Amazon selling fees once you become VAT registered

[@yournaturalway3846]

Hi. Sorry if it's a daft question, but what the best way to check if Amazon have been charging me VAT? Thanks!

[@LucaDavenport]

Inside Seller Central you need to go to Reports > Tax documents > Once in your tax document library you need to download a previous invoice for selling fees and there you will see if VAT is being charged or not.

[@m.a1153]

Great info! As a sole trader I haven't made any money yet so haven't official documents. Can I still try or wait? Thanks.

[@LucaDavenport]

100% do it as soon as you create your Seller Central account!

[@m.a1153]

@@LucaDavenport yes I have the seller account up n running just waiting to make money then get company formed etc, could I still send the letter, maybe I'll try with 2 out of the 3 things you mentioned.

[@LucaDavenport]

@@m.a1153 Yep as long as you are a registered sole trader or LTD company, you can apply for VAT exemption

[@GetThinking]

@@LucaDavenport what document do we provide though? i have tried everything

[@freshsparks668]

Thanks you ,Luca .how do register to mentership program ? I have recently sign up for seller account with a Netherland businesse registration ,now I can see 12 registered store in my dashboard including North American , Can I list my products to usa and uk ,If I can ,Can I request for VAT excemption ?🙏

[@LucaDavenport]

Hi there, you can join my mentorship program here: www.amazonbrandacademy.com/ . You can only request VAT exemption, if your company is UK based I'm afraid.

[@user-cl2xh8nl6q]

Hi Luca, I just wanted to let you know that it looks like the menu structure has changed in Seller Help so the process that you outlined doesn't work. I managed to get an email to them but I had to take a slightly different route.

[@LucaDavenport]

Yep, they've changed the menu layout since the video was recorded.

[@iffykhan64]

If we are vat registered is there any way to exempt the vat on Amazon fees ? Or do we have to reclaim that vat from HMRC ? Or we must pay vat on Amazon fees after vat registration?

[@artbridder]

You have to reclaim the VAT from HMRC

[@finesseboyzk9716]

Hi luca, just wanted to ask where i would get my utr number as i started amazon fba a month ago and set it up as an individual.

[@LucaDavenport]

If you’re selling on Amazon, you need to be registered as a sole trader or LTD company so that you can pay tax properly. When you do that, HMRC will provide you with a UTR number.

[@finesseboyzk9716]

@@LucaDavenport what I meant was I am an individual seller. So how can I tell Amazon so they stop charging me vat as I don’t currently do 85k in revenue

[@parkerjoyce1672]

Hi I have placed some orders on Alibaba and on the Checkout page they add 20% tax on subtotal which I believe is a 20% VAT Now once the item comes to the UK Do I have to pay 20% VAT and import duty again?

[@LucaDavenport]

Hey! No, you shouldn't have to as long as the shipment includes an invoice that shows you have already paid the 20% VAT at checkout. If you do get charged again, you can get a refund from HMRC for the second charge by providing both VAT invoices.

[@blessingkuren]

Thank you Luca, please how do we get the UTR number

[@LucaDavenport]

Hi blessing, you will only have a UTR number if you have registered as either a sole trader or LTD company with HMRC. If you haven't, you won't have one yet.

[@blessingkuren]

@@LucaDavenport thank you Luca, can I still send the Email without the UTR number as I just started selling on Amazon.

[@LucaDavenport]

@@blessingkuren Afraid not! You need to be registered as a sole trader or LTD company first

[@yjsuh100]

What if your selling on Amazon US, but the company is based in the UK? Could I still get vat exemption?

[@LucaDavenport]

No you can’t. VAT exempt status is for UK selling

[@thereviewguy9205]

If i have a VAT id (im vat registered ) this dosent apply right?

[@LucaDavenport]

No it's doesn't apply, however you are able to claim a VAT refund for all VAT charged on selling fees before you became VAT registered. You can find a step by step tutorial here: kzbin.info/www/bejne/govUd3uYhamln6s

[@AhmadNuaymi]

can I do this before even selling anything

[@LucaDavenport]

Yep, you should!

[@davieboy121]

Can you do the same with Etsy and eBay regarded paying seller fees as im not vat registered

[@LucaDavenport]

Good question! I’m not sure I’m afraid. I would check which country you are being charged the fees from. If it’s outside the UK, then you probably can ask them to stop charging VAT on them

[@davieboy121]

@@LucaDavenport hi again I just tried doing the same with Etsy as there are based in Ireland (must be because of lower corporation tax) As this would be outside the UK for vat on digital services, but when I contacted Etsy I was informed I need to be vat registered with a vat number to have the seller fees removed. Anyway, I need to do some research on vat on digital services outside the UK, ill let u know how I get on

[@zaimmateen6427]

I am already VAT registered in HRMC and on Amazon, how can i inform HRMC that my sales are much below threshold?

[@LucaDavenport]

If you are below the £85K threshold, you can de register online

[@adzmgl]

@@LucaDavenport how do you do that?

[@hermes2966]

@@LucaDavenportwill hmrc charge me for de registering

[@lewhem5683]

Do I need to be a sole trader? They've replied telling me I must be. Doesn't match the letter you've exampled.

[@LucaDavenport]

Nope, you don't need to be a sole trader. Some seller support agents just don't know what they're talking about. Just open a new case and try again. Good luck!

[@rhysgardiner4828]

the support box is not on my seller central, have they got rid of it?

[@LucaDavenport]

Nope still there!

[@rhysgardiner4828]

I applied for it and they said the personal info needed to show my business details but it doesn’t give me the option to show anything regarding business, they have progressed it to another department 4 days ago still nothing

[@shaanio]

Hi Luca, can we also have VAT deducted from the monthly selling plan subscription?

[@LucaDavenport]

Good question! I actually never checked but I think you can

[@shaanio]

@@LucaDavenport Found an invoice for the selling plan subscription online and it stated the Luxembourg address, so I think that confirms you can have it waived :)

[@mimimomcheva9020]

Can you do PL and not have a registered company and UTR number?

[@LucaDavenport]

Nope, you need to either be a sole trader or LTD company and have a UTR number. A UTR number is required to pay tax and you can't run a business and not pay tax

[@mimimomcheva9020]

@@LucaDavenport I see. Would that not affect you as an employee? How would I be a sole trader/ LTD company and still pay taxes on my 9-5 job as an employee?

[@LucaDavenport]

@@mimimomcheva9020 It's very easy to do that and many people do it! It would depend on wether you operate as a sole trader or LTD company. You just need to speak to an accountant - they normally offer free consultation calls

[@mimimomcheva9020]

@@LucaDavenport thanks a lot for the info!

[@ahmiimunir5604]

i am vat registered and have vat number but my thresgold is under 85k l.I have just started on amazon.Can i be VAT exempted?

[@LucaDavenport]

No you can only be made VAT exempt if you are not VAT registered

[@neelpatel3996]

@@LucaDavenport I am VAT Registered do I still pay VAT on amazon fees?

[@LucaDavenport]

@@neelpatel3996 No

[@alfonsoarias991]

Hi Luca. Thank you for sharing your knowledge. I have a question related to VAT expenses on Amazon fees. Looking at your previous video kzbin.info/www/bejne/rqHRq2CeitF9rKM&ab_channel=LucaDavenport at 4.35min it seems Amazon wil charge VAT to unregistered sole traders, however this video shows the opposite. Is this something that has changed after brexit? Thank you for your time

[@LucaDavenport]

No but this is something most people (including myself) didn't know about until very recently. It's a bit of a grey area in UK/EU tax rules