How to Claim a VAT Refund on your Amazon Seller Fees

In this comprehensive guide, we will look at the process of potentially reclaiming the Value Added Tax (VAT) you've spent on your Amazon fees, providing you with a precise step-by-step roadmap to navigate this endeavour successfully.

Claiming a VAT refund on your Amazon seller fees is a hot topic right now. In this article we’re going to walk you through why you might be able to claim back any VAT that you’ve paid on your Amazon fees and exactly how to do it.

Expanding in Amazon’s EU marketplace presents favorable selling conditions, such as fewer merchants and more potential customers. However, it comes with challenges, including paying VAT on your seller fees.

But do you know you’re entitled to reclaim this VAT?

In this article, you’ll learn everything about VAT refund requirements and how to claim a refund.

Given the complexity of VAT, you should integrate Link My Books with your Amazon shop for accurate bookkeeping. Link My Books auto-categorizes your sales, fees, and taxes into more accurate summaries, making reconciliation in Xero (or QuickBooks) easy.

Jump in with our 14-day trial to auto-calculate your taxes and apply the correct tax rate on each transaction, allowing you to be tax-compliant.

‍What is an Amazon VAT Refund?

In the European Union (EU) and the UK, Amazon usually charges a value-added tax (VAT) on seller fees —referral fees and monthly professional account subscription fees.

However, if you can prove to Amazon that you’re VAT registered, you can claim back the VAT charged to your fees. You might also qualify for a refund if you’re not VAT registered by proving you’re a business.

Learn more about the documentation you require and the steps you should take to claim a VAT refund from Amazon.

Who is Eligible for Amazon VAT Refund?

If you’re selling on Amazon and are established as a business in the UK or the EU (excluding Luxembourg) then you may be able to claim back any VAT you have paid on Amazon fees. Amazon themselves have referred to this in an older version of their Business Solutions Agreement:

Amazon Services Europe Business Solutions Agreement S-6(b) prior to Jan 2021

If you are in business and established in a European Union country, but you do not have a VAT registration number issued by one of the European Union countries, then you will be able to provide Amazon with other evidence that you are in business. Acceptable evidence is a copy of a recent corporate tax return or an official document issued by a government agency proving that you are in business. Once your evidence is reviewed and accepted by Amazon, VAT will not be charged by Amazon on the fees hereunder provided you are not established in Luxembourg.

What Types of Amazon Fees Can I Recover VAT From?

Any fees invoiced from Amazon’s Luxembourg entity. This is typically all fees except Sponsored Ads in the country where your business is established. Eg. if your business is established in the UK then you should be able to reclaim VAT on all Amazon fees excluding Sponsored Ads from Amazon.co.uk.

Amazon sponsored Ads in your home country are usually billed with local VAT even after you have provided Amazon with your VAT number (once you become VAT registered) so those are not affected.

Can I Get a VAT Refund on Amazon Fees as a Non-VAT Registered Business?

If you can prove that you are a business (even a non VAT registered business) then you qualify to have any VAT you have paid on Amazon fees refunded. It’s that simple. From success stories that we have heard about in the Facebook groups this has been successfully done by hundreds of sellers.

If you are a UK-based Amazon seller and not VAT registered, you can claim a refund for the VAT paid on your seller fees.

You should prove to Amazon that you’re in business by providing a copy of your recent corporate tax return, company certificate of incorporation, or a UTR certificate. You can reclaim claim VAT you’ve been paying for the last 4 years. You can also request for tax exemption.

Documentation Required for Claiming a VAT Refund

You’ll need these documents to support your VAT refund claim:

• Company certificate of incorporation and VAT certificate for VAT-registered limited companies
• Company certificate of incorporation for non-VAT-registered limited companies only
• Unique Taxpayers Reference (UTR) and VAT certificate for VAT-registered sole traders‍
• UTR certificate for non-VAT registered sole traders

How to Reclaim the VAT I Paid on Amazon Fees

• Step 1: Email Amazon Seller Support
• Step 2: Prove Your Business Status
• Step 3: Request for a Refund
• Step 4: Follow Up

The Amazon VAT refund process will differ slightly depending on whether your business is VAT-registered or non-VAT-registered.

Let’s look at the process in more detail:

Step 1: Email Amazon Seller Support

You can open a case with Amazon by emailing Seller Support requesting a refund. In addition to the documents below, provide your trading name, the tax ID (UTR or VAT number), and when you started trading on Amazon.

Step 2: Prove Your Business Status

The next step is to provide relevant documentation to prove your claim according to your business type: 

• For VAT-registered limited companies: Attach your company certificate of incorporation issued by the UK government and your VAT certificate.
• For non-VAT registered limited companies: Attach your company certificate of incorporation.
• For VAT-registered sole traders: Attach your Unique Taxpayers Reference (UTR) certificate from the Inland Revenue and your VAT certificate.
•  For non-VAT registered sole traders: Attach your UTR certificate.

Step 3: Request for a Refund

You should request a refund on the VAT paid to date. Also, explain you are entitled to receive fees exempt from VAT as a business, referring to the relevant Amazon terms.

Step 4: Follow Up

Amazon can take several months to process the refund. So follow up with Amazon Seller Support and ensure you provide additional information if they request it.

The table below shows a summary of the actions you should take to reclaim any VAT you have paid on Amazon seller fees.

How to Automate Your VAT Calculations with Link My Books

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Managing VAT as an Amazon seller can be complex, especially when dealing with different tax rates, jurisdictions, and transaction types. Link My Books streamlines this process by automating VAT calculations and integrating seamlessly with popular accounting platforms like Xero and QuickBooks Online.

Here’s what you can expect:

Accurate VAT Calculations

Link My Books automatically determines the correct VAT for every transaction based on your sales, refunds, and fees.

It ensures compliance with the VAT rules of each jurisdiction, whether it’s the UK, EU, or other regions.

It also accounts for special cases, such as zero-rated items and marketplace facilitator tax rules.

VAT Product Grouping 

Link My Books categorizes your products into VAT groups automatically, ensuring that each product type is assigned the correct VAT rate.

It handles mixed-product transactions with ease, applying the appropriate tax rates to each product line. And simplifies audits and tax filings by generating reports grouped by VAT type, helping you track and reconcile VAT totals effortlessly.

Seamless Integration with Accounting Software

Link My Books syncs directly with Xero or QuickBooks Online, pulling in your sales data and organizing it for accurate VAT tracking and financial reconciliation.

And matches your sales tax data with payouts, ensuring your books are always clean and balanced.

Time-Saving Automation

You can reduce manual bookkeeping by automating VAT calculations, categorization, and reporting.

This eliminates errors caused by manual data entry and complex VAT formulas.

Audit-Ready Records

Easily generate detailed, VAT-compliant reports for every sales period.

Link My Books keeps your records organized and ready for tax authorities, ensuring peace of mind during audits.

Multi-Currency and Multi-Marketplace Support

If you’re dealing with multiple currencies Lnk My Books will convert transactions into your base currency for simplified reporting, even when selling across borders.

It works seamlessly with multiple Amazon marketplaces, Shopify, Etsy, and eBay, consolidating VAT reporting for all platforms.

Link My Books simplifies every aspect of VAT management. It’s a must-have for Amazon sellers looking to save time, reduce errors, and stay compliant with tax regulations.

Try Link My Books free for 14 days and experience hassle-free VAT management for your Amazon business!

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What to Message Seller Support for Your Amazon VAT Refund

Amazon seller accounting doesn't need to be complex. In each of the above scenarios your message could read something along the lines of:

Dear Seller Support

Our business would like to request a refund of the VAT we have paid on Amazon fees please.

According to the Amazon Services Europe Business Solutions Agreement S-6(b): "If you are in business and established in a European Union country, but you do not have a VAT registration number issued by one of the European Union countries, then you will be able to provide Amazon with other evidence that you are in business. Acceptable evidence is a copy of a recent corporate tax return or an official document issued by a government agency proving that you are in business. Once your evidence is reviewed and accepted by Amazon, VAT will not be charged by Amazon on the fees hereunder provided you are not established in Luxembourg. You hereby give the following warranties and representations, namely: (i) that the evidence you submit to Amazon belongs to the business you operate, and that business is established in one of the European Union countries; (ii) that all transactions regarding the services will be business-related transactions made by the business associated with the evidence you submit to Amazon; and (iii) that the evidence and all other information provided by you is true, accurate and current and you will immediately update any such information held by Amazon in case of any changes."

Please find below details that you can use to establish that we are a valid business:

Trading/Company Name:

Tax ID (UTR or VAT number):

Trading on Amazon since:

Attached is our company certificate of incorporation, issued by the UK Government and VAT certificate. [For VAT registered Limited companies only]

Attached is our company certificate of incorporation, issued by the UK Government. [For Non VAT registered Limited companies only]

Attached is our company Unique Taxpayers Reference (UTR) certificate from the Inland Revenue and VAT certificate. [For VAT registered Sole Traders only]

Attached is our company Unique Taxpayers Reference (UTR) certificate from the Inland Revenue. [For Non VAT registered Sole Traders only]

Please could we reclaim all VAT paid by our company since our Amazon Seller account was opened and ensure that no further VAT is charged on our Amazon fees.

Kindest regards

Your Name

Title at company

Company Name

Remember to use the relevant line for your business type regarding the documentation you will attach, and don’t forget to attach the documentation either.

How Long Does it Take to Get a Refund of VAT Paid on Amazon Seller Fees?

Once you submit your case to claim the refund of VAT paid on Amazon fees it usually takes anywhere from 1-3 months to be actioned. Amazon may come back and ask for further proof in the form of company tax returns or such like. Work with them to provide any details and documents they need (it will all be worth it in the end).

According to some sellers we have spoken to, Amazon confirmed they have quite the backlog of these cases so once your case gets to the right team you may notice that it goes quiet. This looks like they are simply working through the backlog so be patient.

Common Challenges Sellers Face During the VAT Refund Process

Most Amazon sellers lose significant amounts because the VAT reclaim process can be hectic. 

Check out the 5 common issues sellers face when reclaiming VAT:

1. Strict Time Limits

As per the statute of limitations, you can claim an Amazon VAT refund for the last four years of transactions. So, Amazon can only assess and process VAT incurred during that period.

If you miss these deadlines, Amazon will forfeit your refund.

2. Detailed Documentation

Amazon requires you to prove your claim by submitting documents like a company certificate of incorporation, Unique Taxpayers Reference (UTR), and VAT certificate.

Sometimes, it can be hectic to source these documents.

3. Changing VAT Regulations

Changes in UK and European legislation significantly affect VAT refunds on seller fees. Therefore, it's essential to remember the regulations because they determine who should file for VAT and the requirements.

4. Delays in Receiving Refunds

The reclaim process can be cumbersome. Amazon can take a few weeks to several months to assess your case. So, be patient and follow up on your case status to speed up the process.

5. Registration Thresholds

Once you hit the £90,000 threshold, you must register for VAT and cannot be exempted from taxation. You can then claim VAT charged on your Amazon seller fees before registration.

6. Complexity of VAT Jurisdictions

Operating across multiple countries means navigating various VAT systems, each with unique rules and rates. This complexity can lead to errors in VAT calculations and claims.

7. Inconsistent Record-Keeping

Maintaining accurate and consistent records is crucial. Incomplete or disorganized documentation can hinder the VAT reclaim process and may result in rejected claims.

8. Lack of Awareness

Some sellers are unaware of their eligibility to reclaim VAT on Amazon fees, leading to missed opportunities for refunds.

9. Administrative Burden

The process of preparing and submitting VAT refund claims can be administratively demanding, especially for small businesses with limited resources.

Quick Tip: Link My Books automates and simplifies VAT calculations.

It accurately captures and categorizes invoices and applies the correct VAT rates on each transaction. Our tool can automatically reconcile your bank deposits with your Amazon sales with a click.

Try Link My Books for free and see what it has to offer!

The registration takes only 15 minutes to complete and you don’t even need a credit card.

How to Accurately Account for Your Amazon Sales on Autopilot

While you wait for your case to be dealt with and all the Amazon Seller VAT you’ve paid to be refunded, you might be wise to get your general Amazon bookkeeping in order too. Ensuring you accurately account for your Amazon sales, refunds, fees and VAT is crucial when it comes to running your Amazon business.

Link My Books does just that, automatically and with absolutely zero effort from you. Our Xero and QuickBooks integrations help e-commerce sellers save time and money by automating their bookkeeping.

We support all the major sales channels including Amazon, Shopify, eBay and Etsy. Each time you receive a payout from a sales channel, Link My Books breaks down all the sales, refunds, fees and most importantly taxes that made up the payout amount.

You end up with a clean summary entry posted to your Amazon accounting software which matches exactly the deposit you received into the bank, making reconciliation of your entire month's sales a quick and painless process.

8,000+ sellers are using Link My Books to automate their e-commerce bookkeeping. Isn’t it about time you joined them? Try our Free 14 Day Trial to see for yourself! 

Frequently Asked Questions (FAQs)

Here are some frequently asked questions (FAQs) surrounding this topic:

How Does Claiming a VAT Refund on Amazon Seller Fees Impact My Financial Reporting and Balance Sheets?

Claiming a VAT refund reduces your expense on Amazon seller fees, positively affecting profit margins. This must be accurately reflected in financial statements, with the refund recorded as a receivable in the balance sheet until received, thus impacting your current assets.

As a Non-EU Business Selling on Amazon, Am I Eligible for Any Similar Refunds or Tax Benefits on Amazon Seller Fees?

Non-EU businesses' eligibility for refunds or tax benefits on Amazon seller fees depends on their country's tax laws and international tax agreements. Consult a tax professional for guidance specific to your business location and for identifying potential tax benefits.

Can I Claim VAT Refunds for Digital Products or Services Purchased Through Amazon?

Absolutely!

You can reclaim VAT on Amazon digital purchases or services as a seller. However, you’ll need a copy of the invoice with the seller’s details and your details (including your business name).

How Often Can I File a VAT Refund Claim for Amazon Purchases?

The frequency of filing a VAT refund claim depends on the volume of your transactions and your back claims (whether from purchases and Amazon seller fees in the last four years).

So, you can file a VAT refund claim quarterly or annually.

Automate Your Amazon Bookkeeping Today

Claiming your refund can be hectic and sometimes even frustrating. So, use the four-step action plan we’ve discussed above.

As you do that, take control of your Amazon bookkeeping to ensure your business runs smoothly. Link My Books simplifies and auto-categorizes your Amazon payouts into sales, taxes, and fees. The sales are broken down by destination country, ensuring you don’t overpay VAT taxes.

Our tool then sends accurate summaries that reconcile perfectly in Xero (or QuickBooks). We also stay up-to-date with Amazon VAT changes to account for the new tax rates on seller fees.

Ready to take the next step?

Start our 14-day free trial to manage VAT and complex Amazon seller fees.

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