How to claim VAT back on Amazon Seller Fees

If you have Seller Central, paid FBA seller fees, based in UK, sold products in UK marketplace, have a turnover under £85,000, and aren't VAT-registered, then Amazon owe you a VAT refund of 20%.

Amazon is shedding out millions of pound in VAT refunds after it was discovered they were charging non-vat registered UK Sellers 20% VAT on top of their Amazon FBA fees and storage fees. The reason is that Amazon's business entity is charging the VAT is based in the Netherlands, which is exempt from the 20% UK VAT requirements.

This step by step guide will show you how to claim back 20% VAT on all Amazon fees and storage fees.

Which Sellers can claim the Amazon VAT refund on seller fees:

• You are a sole trader or limited liability company
• You are a UK based business registered with Companies House
• You have sold products on the UK Marketplace
• You are not VAT registered
• Your turnover is less than £85,000

Can I claim back 20% VAT on Amazon advertising fees?

No you can't. This is because the Amazon entity charging you these fees is based in Ireland, which is under UK law.

How do I claim an Amazon VAT refund on FBA fees?

Step 1: Navigate to the right area in Seller Central

• Log into your Seller Central account
• Click the '?' icon for Seller Support
• Click 'Browse for your issue in menu' in blue
• Click 'Request a VAT refund on Amazon fees

Step 2: How to ask for Amazon VAT refund on FBA fees

Within your message, you must state the following:

• You are a UK resident
• You sell in the UK Marketplace
• Your annual turnover is less than £85,000
• Your company is not VAT registered

Example text to send to Amazon requesting a VAT refund on FBA fees.

Here are two example of text you can copy and paste into the box provided in your application vat refund.

Sole Trader: "I am a UK resident selling solely in the UK marketplace. My annual turnover is less than the £85,000 threshold, and my limited company is not VAT registered."

Limited Company: "As I am a UK based seller that is a limited company and under the £85,000 threshold, I understand that I am classified as VAT exempt by Amazon. I would therefore like to request a refund for VAT paid on all Amazon fees on my account. Please could you look into this and confirm that the refund will be processed?"

Step 3: How to respond when Amazon asks for evidence you qualify for a VAT refund for FBA fees

We've found it's best to let Amazon reply back asking for a copy of the certification of of company registration and the latest set of company accounts. Here is our recommended response. Feel free to change it and customise it to fit your business.

You have a set of accounts:

"Attached is my Certificate of Incorporation [and annual accounts showing turnover is less than £85,000].

Our business name is [X] and we have been trading on Amazon since [X]. We would therefore like to be reimbursed VAT on fees paid since [X]."

You don't have a set of accounts:

If you are a new seller with less than 12 months trading you won't have any accounts yet. In this instance, we recommend the sending following response.

"My business name is [XYZ], and I've been trading on Amazon since [date], and I don't have any accounts, but I can evidence my sales income by [provide your evidence]."

Note: Amazon may come back to you asking for more evidence to prove you fall under the £85,000 turnover threshold.

How long does it take Amazon to repay the FBA VAT rebate?

Amazon will calculate the fee that is due back to you and once confirmed, a rebate is due back to you it will take 3 months before a refund of Vat will be returned.

Will my account change or be affected after claiming the FBA fee VAT rebate?

Amazon will transfer your account to the VAT exempt category. Your sales and sales performance will not be affected by the move.

Need more help?

At Kangaroo UK we offer a daily account management service where we remove all the pain by doing this work for you. Should you have any questions or would like to talk to one of our AMZ experts then please Contact Us and we would be happy to help.