VAT Reclaim Eligibility for Pre-Registration Period

[Ahmad96]

Hello,

I own a UK-registered company selling on Amazon (FBA model) and I am a non-UK resident.
During 2023–2024, I paid VAT on Amazon service invoices (mainly advertising fees) while not VAT-registered. Amazon has now informed me that, as a Non-Established Taxable Person (NETP), I should have been VAT-registered from the start.
I am now VAT-registered effective January 2025.

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Can I reclaim the VAT paid on Amazon invoices from 2023–2024, or offset it against VAT due on my past sales?

 

[DontAsk]

See https://www.gov.uk/charge-reclaim-record-vat/reclaim-vat-business-expenses you can only go back 6 months for services.

 

[Ahmad96]

Thanks for the reply.
Now I’m being asked to repay VAT on all my past sales since my first transaction, as I should have been VAT-registered from the start (as a NETP).
But at the same time, I can only reclaim VAT on services paid within 6 months before registration.
This creates a serious financial issue for me — is there anything I can do about it?

 

[DontAsk]

Thanks for the reply.
Now I’m being asked to repay VAT on all my past sales since my first transaction, as I should have been VAT-registered from the start (as a NETP).

So you were effectively charging VAT-inclusive prices?

But at the same time, I can only reclaim VAT on services paid within 6 months before registration.
This creates a serious financial issue for me — is there anything I can do about it?

You need to be clear. Are you referring to services (as per your first post) or sales of physical goods?

If you read the link then I gave then you will have seen that you can backdate up to 4 years for any of those goods that are still in stock at the time of registration.

 

[Ahmad96]

If you read the link then I gave then you will have seen that you can backdate up to 4 years for any of those goods that are still in stock at the time of registration.

I’ve checked the link you shared, and it helped me understand the period I can reclaim VAT for.
However, I just wanted to clarify another point: from the start of my sales in early 2023 until my VAT registration in 2025, my prices did not include VAT since I wasn’t registered.
Now Amazon says that, as a NETP, my past sale prices should be treated as VAT-inclusive, so I’m required to repay the VAT portion from all my sales since early 2023.

 

[MyAccountantOnline]

Hello,

I own a UK-registered company selling on Amazon (FBA model) and I am a non-UK resident.
During 2023–2024, I paid VAT on Amazon service invoices (mainly advertising fees) while not VAT-registered. Amazon has now informed me that, as a Non-Established Taxable Person (NETP), I should have been VAT-registered from the start.
I am now VAT-registered effective January 2025.

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Why did you register for VAT with effect from January 2025 if you've been trading prior to that on Amazon as a NETP?

 

[Ahmad96]

Why did you register for VAT with effect from January 2025 if you've been trading prior to that on Amazon as a NETP?

At the beginning of my business in 2023, I did not want to register for VAT because I believed it was not required until I reached the sales threshold.
However, at the beginning of 2025, I was notified by Amazon that I am considered a NETP (Non-Established Taxable Person). I was not aware that I fell under this category until Amazon informed me. I was also told that I must repay the VAT on my previous sales, as they were considered to include VAT.
Therefore, I immediately registered for VAT after being informed.

 

[Bobbo]

At the beginning of my business in 2023, I did not want to register for VAT because I believed it was not required until I reached the sales threshold.
However, at the beginning of 2025, I was notified by Amazon that I am considered a NETP (Non-Established Taxable Person). I was not aware that I fell under this category until Amazon informed me. I was also told that I must repay the VAT on my previous sales, as they were considered to include VAT.
Therefore, I immediately registered for VAT after being informed.

You probably should've registered for VAT effective from whenever you started trading - which seems to be 2023.

 

[MyAccountantOnline]

At the beginning of my business in 2023, I did not want to register for VAT because I believed it was not required until I reached the sales threshold.
However, at the beginning of 2025, I was notified by Amazon that I am considered a NETP (Non-Established Taxable Person). I was not aware that I fell under this category until Amazon informed me. I was also told that I must repay the VAT on my previous sales, as they were considered to include VAT.
Therefore, I immediately registered for VAT after being informed.

I do think you need some proper professional advice on this.

I suspect you have potential for some significant amounts of VAT here.

I strongly advise you to speak with an accountant who deals with VAT and NETPs.

 

[DontAsk]

I do think you need some proper professional advice on this.

Agreed but understanding a few "unknown unknowns" first might help. That's where forums are usful.

I suspect you have potential for some significant amounts of VAT here.

I think they know that

The question, as I understand it, is about the treatment of input VAT. If they had any stock at registration they should be able to offset some small portion of the VAT owing.

 

[MyAccountantOnline]

Agreed but understanding a few "unknown unknowns" first might help. That's where forums are usful.


I think they know that

The question, as I understand it, is about the treatment of input VAT. If they had any stock at registration they should be able to offset some small portion of the VAT owing.

Forums are useful and I'm always happy to give a few pointers and offer help but sometimes what can seem a simple question isn't and proper professional advice is needed. I do think this is one example.

 

[Ziggy2024]

You probably should've registered for VAT effective from whenever you started trading - which seems to be 2023.

This. If you are an NETP (I suggest you check that first) you need to be registered from the start i.e. 2023. How are you going to report the 2 years of output vat prior to Jan 2025? Your initial question of reclaiming input VAT wouldn't be an issue if you'd registered with the 2023 date as you would be able to claim the VAT on the returns as it was incurred.

Forums are useful and I'm always happy to give a few pointers and offer help but sometimes what can seem a simple question isn't and proper professional advice is needed. I do think this is one example.

+1

Honestly I think you may create a bigger issue by trying to sort this yourself. Pay someone to review the situation and make sure you are on the right track.