Confirmed to collect and pay on behalf of others! Amazon is about to change

Dear sellers:

Hello!

As the UK leaves the EU, a new set of VAT regulations will also be implemented in the UK market from January 1, 2021. This email contains information that may be important to your business, please read it carefully.

If you ship products from outside the UK to customers in the UK:

o The current VAT exemption for goods with a consignment value of less than £15 will be removed. All goods you sell will be subject to VAT.

o If the value of your consignment does not exceed £135, applicable VAT must be collected and remitted by Amazon.

o If the value of your consignment is over £135 you will still need to pay VAT and any import duties yourself, as is currently the case.

If you ship products from UK inventory to UK customers and your business is established outside the UK, Amazon must collect and remit applicable VAT. This applies to both sellers in the UK using Fulfillment by Amazon and sellers using third-party fulfilment methods.

If you ship products from outside the UK to a UK customer and that customer is VAT registered in the UK (business and institutional customers), Amazon is not required to collect and remit VAT on your behalf. VAT-registered customers can self-report UK VAT through their VAT return.

To account for these changes, please ensure that the details of your Seller Central account are up to date and that the market prices posted on Amazon always include VAT.

The UK government expects to publish final changes to VAT regulations in the fourth quarter of 2020. We will help you prepare for these changes and keep you informed if there are any changes to current expectations. Please refer to our help pages for the latest information:

https://sellercentral.amazon.com/gp/help/external/GSF678GXLDTTTETZ.