Amazon Sellers Face Bankruptcy as VAT Check Debacle Leaves Funds Frozen

• Food and drink sellers on Amazon are facing bankruptcy due to frozen funds until they prove their VAT status.
• Sellers have provided documentation proving they are UK-based, but are stuck in a “Kafkaesque” nightmare.
• Amazon claims to have verified the majority of sellers and is working to improve the process.
• One seller had £25,000 frozen in their Amazon account and is receiving daily automated emails asking for the same documents.
• Another seller is unable to withdraw from their Amazon account and is facing bankruptcy.
• A specialist ingredient brand is still awaiting payments despite sending requested documentation multiple times.
• Amazon’s support teams have disabled telephone contact options and abandoned chat messaging conversations.
• Legislation requires online marketplaces to collect and remit VAT on transactions involving overseas sellers.
• Amazon and HMRC are increasing due diligence on sellers to combat tax fraud.
• Amazon apologizes for the issues with verification and encourages the government to continue tackling tax fraud.

Source: thegrocer.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---