Notice of Change in UK Value Added Tax (VAT) Withholding Policy
Important policy changes are more:
From September 1, 2023, some UK-registered seller accounts (with registered VAT accounts) will be affected by Amazon's withholding service. Over time, it is expected that the majority of UK-registered seller accounts (with sales above the £85,000 tax-free sales threshold) will gradually be covered by this service.
The impact of changes in sales policies:
- Since September, the Chinese legal person of the UK company has been subject to withholding.
- Those who are not registered for UK VAT can take advantage of the £85,000 tax-free sales credit to avoid withholding.
Customer feedback and response:
Recently, a large number of clients have reported that their funds have been frozen. If you are experiencing this situation, we recommend you to move your positions as soon as possible to avoid the freezing of funds.
Information provision requirements:
Amazon requires the following documentation to prove a business address:
- Lease Agreements
- Staff Record and PAYE Reference
- Council Tax Bills
- Hydroelectricity
- Purchase Receipt
- Director's National Insurance Number
Frequently Asked Questions:
- Confirmation of withholding::
- Use your VAT account to check on the Amazon website.
- Why is payment made by way of withholding::
- Amazon makes the decision based on the information displayed in the back office.
- Change VAT address::
- Providing a company address and PPOB often makes it difficult to change the address to a UK address.
- non-UK company mark::
- It is recommended that positions be moved and funds withdrawn as soon as possible.
Professional advice:
Regularly check for official Amazon policy updates and consult a professional tax advisor for the latest information and advice.