Thread: UK ebooks VAT 20%->0% 1st May 2020
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Old 05-01-2020, 03:47 PM   #47
JSWolf
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Quote:
Originally Posted by pdurrant View Post
VAT on electronic goods is charged at the rate at the customer's location, not the supplier's.

Whether Amazon are selling to the UK from their UK subsidiary or their Luxembourg subsidiary doesn't matter. There is no longer a VAT component in the prices.

For example, if a business bought a ebook reference in April for £120 (=£100 + £20 VAT), they could reclaim the £20 of VAT paid to Amazon on their next VAT return. The same book bought in May for £120 (=£120 + £0 VAT) and they would not be able to reclaim any VAT, because no VAT was paid.
So how did Amazon make such a really bad deal?
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