AMZ123 has learned that Amazon has publicly expressed support for the UK government's initiation of Value Added Tax (VAT) reform consultations. It suggests extending the current "deemed reseller (OSS-style collection)" rule, which only applies to non-EU overseas sellers, to all third-party sellers in the UK. This aims to address the regulatory loopholes brought about by the current "dual-track system".

Amazon pointed out that some illegal operators evade or falsely declare VAT by registering UK companies and forging documents. It is estimated that about £3.2 billion of platform sales achieve tax avoidance through this means each year.

Amazon stated that since it began fulfilling VAT collection and payment obligations in 2021, it has collected over £6 billion in VAT for the UK Treasury. Independent analysis shows that if the platform collection mechanism is fully implemented, it could potentially generate an additional £700 million in tax revenue for the UK each year.

If the relevant reforms are officially implemented, UK domestic enterprises and all third-party sellers may be uniformly subject to VAT withholding and payment by the platform based on transaction amounts. It is recommended that Amazon UK sellers check their current VAT registration and compliance status in advance, assess the impact of platform withholding on capital recovery, and properly keep complete input invoices to meet subsequent deduction or tax audit requirements.

Source: AMZ123
Original Link: https://www.amz123.com/kx/iKdd3mIX