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Hello. I need a UK tax advice regarding a VAT issue. One of my customers invoices Amazon for linking his site to theirs, so he receives a commission for this service. He asked me about the VAT position and I advised has to use the Reverse Charge scheme. But he has sent me a link today which states that Amazon does not pay VAT on the referral fees. “If you are an EU resident taxable person established outside Luxembourg you are not required to charge VAT to Amazon EU Sarl. Instead Amazon EU Sarl accounts for the VAT due on this supply under the reverse charge mechanism. This is because, under European VAT legislation, the marketing services provided by EU associates established outside Luxembourg are subject to VAT in the country where the recipient of the service is established (refer article 44 of the VAT Directive 2006/112/EC). Even though the services are not subject to VAT in your own country European VAT legislation generally requires you to issue a VAT invoice for services provided to other companies established in the EU. You would not charge VAT on this invoice but you would need to mention Amazon EU Sarl Luxembourg VAT number on the invoice (LU20260743), include the reason why you do not charge VAT and ensure you meet all the other requirements of a VAT invoice as applicable in your country. If in doubt you should verify the requirements with your local tax office or with your tax adviser. …” So, my question is, taking in consideration their rules, does the reverse charge not apply here and the customer simply doesn’t charge VAT at all?

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