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Refund of VAT on Amazon FBA

The word has it that Amazon has started refunding sellers for VAT charged on Amazon Selling and FBA fees. Even though Amazon does not widely communicate this, the returns can reach several thousand euros.

Do you qualify for a refund?

Not all companies qualify for the VAT refund. There are several criteria you have to meet to return your fees successfully.

It comes as no surprise that you must have sold items and paid the fees to Amazon. You also have to be registered as a sole seller or a limited liability company. Most importantly, you are not VAT registered (or were not registered when paying the fees).

It is only possible to receive a refund if you are located in a country where the VAT threshold is above zero – in other words, this is only applicable if your country allows you to legally operate without registering for VAT. For example, as Germany’s VAT threshold is zero, you will not receive a refund. But if you work in the UK and have earned below £85,000 in the last calendar year – you are eligible for returning your fees.

Why has Amazon started refunding the fees?

The legal entity handling Amazon seller fees in the FBA scheme is registered in Luxembourg, and the local legal framework requires them to skip charging VAT under certain circumstances.

Here’s what you have to do to receive the refund:

So far, submitting information for a refund has been very simple. All you need to do is to get in touch with Amazon’s customer service and write a letter that includes:

  • Your demand for a return of your fees;
  • Statements that you are eligible to receive the refund (such as your country of residence, your VAT registration status – non-registered, and your country’s VAT threshold);
  • You should also add proof to your claims, such as your business certificate and turnover statement.

Need help in getting your fees back? Get in touch with our team for a consultation!