Rumour across Amazon Seller Social Media and Groups has it that Amazon has been refunding sellers for VAT charged on Amazon Selling and FBA fees. Find out what’s behind the rumour and how to apply for a refund in the following article.
Antonia Klatt
Last Updated on 11 March 2022
Is Amazon refunding Fees?
Yes, Amazon is indeed refunding selling and FBA fees under certain circumstances. The refund applies to all fees with the exception of marketing fees.
Why is Amazon refunding Fees?
The Amazon entity that is responsible for charging Amazon sellers fees is based in Luxembourg. Therefore, they are not supposed to charge VAT on fees under certain circumstances and are forced to refund the charged VAT. Of course, Amazon does not publicise this. Instead, an Amazon seller and Twitter user found this out and news of Amazon refunding fees has spread like wildfire in the seller community. Many sellers are rumoured to have been refunded as much as £8,000.
Can I get Amazon fees refunded?
You can get a refund if three criteria are met.
- You have sold something on Amazon and have paid fees in the first place
- You are a sole seller of registered as a limited company
- You are not VAT registered or were not VAT registered at the time
The last criteria is where confusion surrounding this rumour sets in. How can one sell products on Amazon without being registered for VAT? Indeed, this is not possible in a lot of European countries. For example, in Germany the VAT threshold for sellers is 0€. No seller can legally sell without being VAT registered and, therefore, nobody can get a refund on Amazon fees.
However, in the UK, where the rumours surrounding Amazon refunds first emerged, the VAT threshold stands at £85,000. There it is possible to sell products on Amazon without being registered for VAT and, therefore, possible to get an Amazon fee refund.
How to get Amazon Fees refunded
According to UK Amazon sellers creating content about the possible refund, all you need to do is write a letter to the Amazon customer service. The letter should include the three criteria (e.g. “ I am a UK resident selling on Amazon UK and my annual turnover is less than £85,000. My business is not VAT registered”). It should also include a business certification and accounts showing the turnover. Lastly, it should include a demand for a fee refund.
