Amazon's New VAT Collection Policy: Foreign UK LTD Owners Beware

[xdintgf]

Is This True??
Very very sad news coming for those with UK LTD with foreign owners. Amazon starting to roll out VAT 20 collection and remittence and in fact will start holding funds of accounts and will start collecting due VAT since Jan 2021.
This is going to be extremely frustrating for everyone. They just started so we don't know who is going to be impacted, in what sequence, in what format and what are the solutions around it. For now, it is a wait and watch for few weeks.
Absolutely pathetic and disgusting way of rolling this out by Amazon.

 

[ty_ty13]

Amazon may collect VAT for UK LTD with foreign owners; monitor updates and seek guidance to comply properly.

 

[woodlittle]

This is our Pakistani people's fault because they don't know about UK laws and regulations.
They don't take services from professional accountants on this serious matter. They make LTD companies on their own and start doing work through it.
Solution: Add a director in the company someone trustworthy from the UK. It is better to hire an accountant from now.

 

[xdintgf]

@woodlittle Thank you for the information

 

[naturewalker]

@woodlittle what about those who have UK Ltd account and selling in Australia only not UK? Will they also be Affected?

 

[woodlittle]

@naturewalker Are you importing goods from UK ? Or just using a UK company for account and bank details? In this case your company needs to follow Australian taxation laws. Like GST and income taxes.

 

[logicoverfaith]

@woodlittle can you tell when we register our LLC on amazon with business details (not on individual basis) then amazon require utility bill from us or not?only passport and US number will be enough

 

[woodlittle]

@logicoverfaith I am an accountant. Some amazon experts can guide you better in this case.
I heard normally amazon asks for address verification.

 

[logicoverfaith]

@woodlittle okay .thank you

 

[hopefulguy]

@logicoverfaith bill is compulsory u have to arrange utility bill u can have ptcl connection or buy postpaid evo whenever Amazon will deactivate ur account he ll request to provide utility bill so its better to arrange it

 

[logicoverfaith]

@hopefulguy thank you

 

[lborrego]

@hopefulguy
they still insist that the zip code on PTCL bill does not match the account profile. . I hardly could manage to make them understand that in Pakistan, zip codes for addresses are not used.

 

[unspokenexpression]

Any authentic source ?

 

[acer621]

If anyone willing to collaborate to do business on percentage bases in UK, let me know.
Anyone with previous UK market experience is preferred.

 

[blseiple]

What does it mean?

 

[bforeman]

@livingwell12

 

[trimjoyii]

Complete knowledge is a blessing (i doubt you have it)
Incomplete knowledge is a curse (which we should not spread)

 

[jenniann87]

@trimjoyii The info is true. UK VAT e-Commerce legislation compliance is being carried out by Amazon . Currently companies using virtual addresses are being sent notices.

 

[lithiumkat]

@leadersmash

 

[springboks]

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