I have an overseas amazon Seller whom I complete VAT Returns for.
They have had their account suspended as they have not responded to HMRC email. They never received the email in the first place
Amazon based on HMRC instructions have suspended my clients amazon account
My client registered for VAT in 2017 but started to trade in 2016 on Amazon UK and will owe VAT plus Penalities plus will incur my fees dealing with the investigation. They hard sell around 1K per quarter and do not make much profit in the UK.
It seems HMRC are going after Amazon Sellers and clawing back VAT which is payable from day one of trading in UK. Many incorrectly assume that its only payable from date of registration.
This is a fairly new development after the tax law changes making selling platforms liable for their traders VAT. What are the repercussions if my client just bails out of UK and does not pay the VAT due. One is that my client will not be able to trade in the UK ever again but will HMRC estimate the VAT payable and make Amazon pay ?