Amazon AWS invoicing VAT query!!

Can anyone advise on AWS VAT

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Hi

My company is being charged from Amazon softwear services (AWS) they are based in the US and their invoice is charging me VAT @ UK rate 20%.

I'm a little confused - I've assumed that I can not claim back this VAT as the service was purchased oversea so subject to reverse charge. Is this correct?

I've tried searching the web but getting conflicing information.

Has anyone else come accross this ?

 

Thank you.

 

Kerry

Replies (5)

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By Busy bookkeeper
07th Feb 2019 18:46

Also Amazon website not very helpful

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By Wanderer
07th Feb 2019 19:30

Amazon WEB Services UK LTD &
Amazon WEB Services Emea Sarl, UK Branch
both have UK VAT numbers.

Anyway looks like no longer subject to the reverse charge per this:-
https://aws.amazon.com/premiumsupport/knowledge-center/vat-aws-europe-pu...

Thanks (1)
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By Matrix
07th Feb 2019 20:46

It may be VAT on digital services. If it is UK VAT then I don't see why you can't reclaim it. However if you let them know that you are a business and not a consumer then it should not be charged.

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By Wanderer
08th Feb 2019 08:30

It's normal UK VAT, not subject to the reverse charge.

Just treat it in the standard way.

Thanks (1)
By jon_griffey
08th Feb 2019 10:38

I find it a real problem to determine what rate of VAT applies to digital services. A typical modest IT client for example can pay a multitude of little amounts to suppliers and you need to determine whether the supplier is UK based on not and if not, what rate of VAT is charged, are they properly reverse charged. Often proper invoices are not available. Frequently they will buy from both the US company and the UK subsidiary and it is difficult to know which is which. The client's magic cloud bookkeeping software of course thinks everything is standard rated.

Thanks (1)