Many UK Amazon retailers are losing money after the platform froze their payments. This has led to numerous questions and complaints from traders. Some of them say they are facing financial difficulties because of this situation.
In many cases, Sellers do not know the exact reasons for the block and do not know how to unblock it. A common complaint is that Amazon continues to ask them for information even after they have already provided it. Meanwhile, seller support appears to be minimal.
Tax obligations
In January, Amazon sent emails to hundreds of sellers warning them that their payouts could be blocked due to signs of non-compliance with UK establishment requirements.
In order to meet its tax obligations (VAT), Amazon requires proof that sellers are based in the UK.. This ensures a fair market without tax evaders on its platform, the UK’s leading e-commerce platform.
This situation has caused constant administrative problems as British traders are unaware of why their legitimacy is being questioned. Some sellers will also be forced to pay VAT on historical B2C sales from 2021 if they cannot prove their business status in the UK.
Amazon has confirmed the authenticity of your queries in the UK Seller Central forum. An Amazon seller’s post about the payouts received over three hundred replies (and counting) from angry and concerned sellers.