VAT free goods from amazon europe

7
Posted 11th Jul 2020
Hi, i have Amazon business account with VAT number. I saw that amazon europe sites - spain, italy , france doesn’t charge VAT for any items. How this works out? Items are normal consumer electronics not related to my IT consulting business.
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7 Comments
You're not going to be able to claim back VAT from a non UK VAT registered company. That's why some companies offer a discount for buyers outside of the region
Edited by: "drasim" 11th Jul
drasim11/07/2020 11:46

You're not going to be able to claim back VAT from a non UK VAT registered …You're not going to be able to claim back VAT from a non UK VAT registered company. That's why some companies offer a discount for buyers outside of the region


But do I pay it later? Do I declare it in my quarterly VAT returns? Will somebody notice if I don’t? I haven’t bought it yet and I don’t want to trouble my accountant with such non business related things. I have non business amazon account as well which I use normally
Why would you need to put it into your accounts if it's not business related? Can you not use your personal Amazon account?
drasim11/07/2020 12:00

Why would you need to put it into your accounts if it's not business …Why would you need to put it into your accounts if it's not business related? Can you not use your personal Amazon account?


I could but there is a bit of temptation of getting cheaper goods. Not sure what law says exactly.
Don't mix personal purchases with your business stuff, just create a separate consumer account on Amazon. If any audit happens, there may be some awkward questions.
Thanks a lot for answers
sammy.p7511/07/2020 12:02

I could but there is a bit of temptation of getting cheaper goods. Not …I could but there is a bit of temptation of getting cheaper goods. Not sure what law says exactly.


You've probably noticed if you buy an Office 365 subscription that there's no VAT to pay, because Microsoft use a Ireland VAT number (I think) so you can't claim VAT on it, even though you're invoiced in GBP.

Same goes for other international business. Hetzner for example have an EU VAT number billed in Euros but they give an equivalent VAT discount to international customers (so 20% for UK)

There are some UK companies who you won't be able to claim VAT on - CEX, Music Magpie, any business that uses the VAT margin scheme. So keep that in mind for your business.

I understand wanting to get cheaper goods - I buy IT equipment for the company I work for. I'm not an accountant so I don't know the legal side of things but I doubt it's a good idea to claim VAT for a business if you're not intending to use it for business.
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