HMRC - 10% settlement for owed VAT for Non-Eu online FBA Sellers
0 have signed. Let’s get to 7,500!
Amazon.com this past decade allowed sellers to send FBA inventory into the UK without registering with the HMRC to collect VAT on sales. Many sellers did not charge the 20% fee for various reasons. They were very wrong and I am not trying to whitewash that. HMRC currently is sending invoices to these foreign sellers for 20% of all past sales collected since their first shipment to FBA. Amazon is suspending these sellers until HMRC verifies all VAT owed was paid up. Sellers did not factor this in the selling price and cannot afford to stay in business if they need to pay the full bill.
This is not smart because these sellers are simply going to close up shop as Amazon won't allow them to sell without paying what HMRC says they owe. HMRC will now spend millions chasing these sellers across the world with very little leverage. My suggestion is.
1) HMRC allow sellers to settle past VAT tax owed for .10C on the dollar
2) All sellers must register with VAT and moving forward be in full compliance.
Everyone will win because HMRC will spend more than they will collect chasing small businesses across the world for owed tax$. All these small businesses will be able to continue to sell in the UK and collect millions of pounds in future businesses for HMRC. Many states in the US currently have a Sales tax amnesty for past sales tax owed. That's a complete amnesty for owed sales tax.
Today: Ed is counting on you
Ed Rosenberg needs your help with “hmrc: HMRC - 10% settlement for owed VAT for non EU online FBA sellers”. Join Ed and 7,075 supporters today.