Sales via Amazon Sales Portal

In the case of partnership, the Appellant had orchestrated VATable supplies of fashion jewellery via Amazon’s sales channel where Amazon had paid the proceeds of the sales of the goods (net of commission) to the Appellant’s bank account.


The Appellant had also entered into a financial agreement with a different person, Ms Kisil trading as Jewellery 4 All, in order to minimise currency conversion fees for both parties. That arrangement, which Amazon was not aware of, arose from an unusually close working relationship between the two businesses.  The issue for the Tribunal was whether the sales had been made by the Appellant (as HMRC contended) or the other party to the arrangements.


The VAT appeal was found in the Appellants’ favour as the Judge ruled that, in the specific circumstances described to the Tribunal, the Appellant was not the person who sold the jewellery in the period covered by HMRC’s assessment.


This case demonstrates the importance of clearly evidencing the chain of supply, an issue which is particularly important when goods or services are sold on-line.  Please contact our Helpline should you wish to discuss a multi-party supply chain in further detail.  

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