VAT News

Amazon suspending seller accounts

Following on from our article of September 16 detailing the implementation of the 2016 UK Finance Act, online giant Amazon have reportedly began suspending the accounts of certain sellers.

As explained, the new legislation gives HMRC the power to hold online platforms like Amazon jointly liable for unpaid VAT where sellers using the platform are non-compliant with current rules. As many sellers are based outside of the UK, they do not enjoy the £83,000 UK VAT registration threshold and must register from commencement, which many have failed to do.

It appears that Amazon have now suspended accounts where the seller is not VAT registered, or has not explained why they are not required to be registered, in order to protect themselves from being held liable under the new rules.

Sellers, particularly those from outside of the UK should ensure that they are fully VAT compliant to ensure that their accounts on online selling platforms do not become suspended.

Related articles

COVID-19 VAT Cashflow Tips (Part One)

COVID-19 is affecting business in ways no one thought possible. In order to free yourself from the burden of cashflow worry, we’re trying to do our bit to advice you on ways you can inject income into your bottom line.

Read more
HMRC Postpones Phase 2 Making Tax Digital Till April 2021

April 1 2020, was meant to be the date that HMRC launched phase II of making Tax Digital across the UK. However, due to COVID-19, they have made the decision to postpone the rollout by one year to April 1 2021. 

Read more
Coronavirus: Tax provisions and Easements by Country 

A country-by-country breakdown of the tax provisions and easements being implemented by individual country tax authorities.

Read more