AWS VAT Registration

[MrButton]

I have a small AWS bill monthly to run some servers for some webservices.

This is paid directly using the company card.

I've just noticed that you can register your VAT details with AWS and they say they will no longer charge VAT to the invoices.

Linky to AWS deets

This seems weird as usually you'd get charged the VAT and you'll just claim it back on the VAT return. Is this actually correct for the UK?

Im sure I will ask my accountant but this info could be useful to others too.

[TheCyclingProgrammer]

You should do this.

Under VAT rules for digital services Amazon must charge U.K. VAT on their services to U.K. consumers even if they are billing you from outside the U.K. however this isn’t reclaimable unless you have an invoice with a U.K. VAT number on it (they may not be registered in the U.K.).

By supplying your VAT number they will treat it as a B2B transaction and the above rules no longer apply. Instead of charging you VAT you must account for the VAT under the reverse charge mechanism.