Amazon Seller's VAT Claim Back Guide

Cindy Jackson
Dec 12, 2021
3 min read

Updated: Nov 17

*Part of the Mrs Prime Classics series – early seller experiences, revisited and refreshed for 2025.* First published December 2021. Updated for the new Mrs Prime site, November 2025.

🔗 Quick link: Skip to the TL;DR ↓

NB This is now out of date - Amazon have moved out of Luxembourg and now do charge VAT on all fees. We are sharing for information (historic posts).

Claiming Back VAT on Amazon Fees (Without the Headache)

If you’re a UK Amazon seller who isn’t VAT registered, you might not know you can reclaim VAT on some of the fees Amazon charges. This post (and the original PDF shared by the Amazon seller community) explains how it works, who’s eligible, and what to watch out for.

When I first discovered this, it felt like finding free money I didn’t know I’d lost. The process was straightforward, but timing and accuracy were everything. If you’re not yet VAT registered and your yearly turnover is below the threshold (£85,000), this is well worth understanding.

How It Works

If you’re trading as a registered business - whether a limited company or sole trader - and you are not VAT registered, you can apply to Amazon to:

Stop being charged VAT on FBA and referral fees, or
Get a refund for the VAT you were charged before you became VAT registered.

It’s a legitimate process recognised by Amazon, but not widely publicised.

Important Warning

Only do this if your account is in good standing. That means:

Your business details are consistent everywhere (Amazon, Companies House, invoices, etc).
Your registered name and address match exactly across all documents.

If there’s any mismatch, Amazon may delay your request or flag your account for review. If in doubt, speak to your accountant first before submitting anything.

When I applied, it took around six weeks from submission to refund, and I haven’t been charged VAT on fees since.

Huge thanks to the sellers who created and shared the original step-by-step guide within the community - it’s been a real help to many. 💚

Download Amazon VAT Claimback PDF here

TL;DR (Too Long; Didn’t Read)

What’s a TL;DR?It’s a quick-read summary for busy sellers and voice-search users - a short recap that gives you the essentials in a few lines.

Summary:If you’re a non-VAT registered Amazon seller (earning under £85k a year), you may be able to reclaim VAT on past Amazon fees and stop being charged VAT going forward. Make sure your account details match exactly, your paperwork is accurate, and check with your accountant before applying.

FAQs

Q: Who can claim back VAT on Amazon fees?

A: UK sellers who are registered businesses (limited company or sole trader) but not yet VAT registered, and whose annual turnover is below the £85,000 VAT threshold.

Q: How long does the process take?

A: It varies, but most sellers report around 4–6 weeks from application to refund approval.

Q: What if my details don’t match exactly?

A: Don’t risk it. Fix any inconsistencies first or consult your accountant - you don’t want to trigger an account review unnecessarily.

Q: Does this still apply in 2025?

A: Amazon policies change over time, so double-check current guidance in Seller Central or with a qualified accountant before submitting any requests.

Resources

Amazon Seller Central - For official VAT and fee information.
UK Government VAT Thresholds - Current VAT registration rules and limits.
Mrs Prime Facebook Group - Community discussions and updates from real sellers.

Note (November 2025): This post reflects experiences from 2021. Amazon’s VAT processes and thresholds may have changed, so always confirm the latest guidance with your accountant or directly within Seller Central before taking action.