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.