Can You Reclaim VAT on Amazon Seller Fees? (UK Guide, 2026)

Short answer: yes, if you're VAT-registered on the standard scheme. Since 1 August 2024 Amazon adds 20% UK VAT to its seller and FBA fees, and you reclaim it in Box 4 of your VAT return using Amazon's VAT invoices as evidence. Amazon advertising has carried reclaimable UK VAT for longer. Fees before August 2024 were reverse-charged, so there was no VAT to reclaim on them — they were VAT-neutral instead.

Who can reclaim

Your situation	Can you reclaim VAT on Amazon fees?
VAT-registered, standard scheme	Yes
VAT-registered, Flat Rate Scheme	Generally no
Partially exempt business	Only the proportion allowed by your partial exemption method
Not VAT-registered	No — the VAT is a cost

Which fees carry reclaimable VAT

Selling fees — referral fees, variable closing fees and the monthly subscription (from 1 August 2024).
FBA fees — fulfilment, storage, removal, disposal and prep fees (from 1 August 2024).
Other services — Vine, coupon redemption and similar programme fees (from 1 August 2024).
Advertising — Sponsored Products, Brands and Display, billed with UK VAT.
Digital Services Fee — billed with UK VAT.

Refunds of fees (for example, commission returned when a customer is refunded) reduce the VAT you can claim, so post them against the same fee accounts at the same rate.

Fees before 1 August 2024

Before that date most fees came from Amazon Services Europe in Luxembourg without VAT. VAT-registered sellers applied the reverse charge: declare 20% as output VAT in Box 1 and claim the same amount back in Box 4. The net effect was nil, so there's nothing to "reclaim" for those periods — but they still need to be on the return. See the August 2024 change.

How to claim it

Record each settlement's fees with 20% (VAT on Expenses) in Xero, tax-inclusive, so Xero extracts the VAT.
Download Amazon's monthly seller fee VAT invoices from the Tax Document Library and keep them with your records.
Download advertising invoices from the Amazon Ads console.
Check that the VAT in Xero for the quarter is close to the VAT on Amazon's invoices. Small differences come from timing — Amazon invoices by calendar month, settlements run roughly every 14 days.
Submit through Xero as part of your normal VAT return; the fee VAT is included in Box 4.

How much is it worth?

A seller paying £3,000 a month in Amazon fees (including VAT) reclaims £500 a month — £6,000 a year. Missing it, or posting fees without VAT, means paying that VAT for nothing.

Automatic with TrueBooks

TrueBooks posts every Amazon fee to its own account with the right rate for its date, so the reclaimable VAT from each settlement lands in Box 4 without manual work. Its VAT audit view shows how much of each quarter's input VAT came from Amazon fees. See the Amazon Xero integration.

General information, not tax advice. Check your position with your accountant.

Frequently asked questions

Where do I download Amazon's VAT invoices for seller fees?

In Seller Central, go to Reports and open the Tax Document Library, then the seller fee invoices tab. Advertising invoices are separate and are downloaded from the billing section of the Amazon Ads console.

Can I reclaim VAT on Amazon fees if I use the Flat Rate Scheme?

Generally no. Flat Rate Scheme users pay a fixed percentage of turnover and don't reclaim VAT on day-to-day purchases such as Amazon fees. The exception is certain capital purchases, which Amazon fees are not.

Can I reclaim VAT on Amazon fees from before I registered for VAT?

HMRC allows VAT on services bought in the six months before registration to be reclaimed if they relate to your business after registration. Fees on sales made before you registered usually don't qualify. Ask your accountant before claiming.

Reclaiming VAT on Amazon Seller Fees