VAT Claim Back
Hello Amazon Sellers and Team,
From 1st August 2024, Amazon charge VAT at 20% on its fees this time, and as you know, we pay VAT to brand distributors on every purchase. However, from August 1, 2024, Amazon will apply VAT to all sellers selling on Amazon UK.
So can we claim back this VAT?
We aren't getting profit from 1st August because Amazon charges 20%, so how to run a business and how to get profit? Please guide me.
@Spencer_Amazon@Julia_Amzn @Abella_AMZ @Ash_AMZ @Ezra_Amazon @Jessica_Amazon_ @Maja_Amazon @Sarah_Amzn @Winston_Amazon @Jona_Amazon @Simon_Amazon @Spencer_Amazon
Best regards,
VAT Claim Back
Hello Amazon Sellers and Team,
From 1st August 2024, Amazon charge VAT at 20% on its fees this time, and as you know, we pay VAT to brand distributors on every purchase. However, from August 1, 2024, Amazon will apply VAT to all sellers selling on Amazon UK.
So can we claim back this VAT?
We aren't getting profit from 1st August because Amazon charges 20%, so how to run a business and how to get profit? Please guide me.
@Spencer_Amazon@Julia_Amzn @Abella_AMZ @Ash_AMZ @Ezra_Amazon @Jessica_Amazon_ @Maja_Amazon @Sarah_Amzn @Winston_Amazon @Jona_Amazon @Simon_Amazon @Spencer_Amazon
Best regards,
17 replies
Seller_76AUwmqvSyRIM
It’s simple.
Are you VAT-registered? If yes, recover the VAT in the usual way.
By the sounds of it you are not, so you cannot recover the VAT and you need to adjust your prices sufficiently to give you a suitable profit.
Seller_d8YGbIjNqwFxn
You have a VAT number against your Amazon Seller Information page.
Therefore if you are VAT registered you can reclaim the VAT that Amazon is charging.
Ideally you should have already claimed this VAT back in previous VAT Returns you have submitted. You may need to take advice from HMRC/Accountant as to whether you can now claim this VAT back.
It may well be worth talking to an accountant as if you have missed reclaiming this VAT there maybe other VAT your are not claiming back. For example are you reclaiming the VAT you pay for your stock, postage supplies, postage etc.
Seller_76AUwmqvSyRIM
It was a strange question to ask if they are already VAT-registered. They really should have an idea how VAT works.
Seller_76AUwmqvSyRIM
The mind boggles!
If I were you, I would give them notice immediately and change to one that understands about your responsibilities as a vat registered company. It has nothing to do with Amazon as such but an accountant that has experience with Amazon does help.
You buy stuff and you sell stuff, it doesn't matter where the selling happens. The accountant needs to cover all angles from purchasing and selling.
Seller_mS10UjVYuuGor
Is that your choice or theirs?
Amazon reports are difficult to understand to the uninitiated so an accountant with experience of Amazon reports is helpful, but a reliable software package to link your Amazon account to your accounting software (eg A2X or similar) may well be cheaper than an accountant doing all the work manually. Either way a knowledgeable accountant should still check over it before submitting VAT returns.
You are not being treated differently to any other seller on Amazon which will always be a competitive market so you need to know your costs and price accordingly. Some lines may not be profitable to sell on Amazon and better just listed on your own site.
Seller_ae51e0CJoHqCX
I'm confused by this if you have been vat registered for 5 years.
Assuming you pull off a report to do your VAT, you need to pay the VAT on your sales.
Your monthly seller fees and advertising fees (if you use it) have been charged for a long time so I assume you have been reclaiming this anyway. The only thing that Amazon has applied the VAT is the seller fees/ fba fees. It is additional so anyone VAT registered should not find themselves in a a position that wasn't the sme as before.
For anyone VAT registered business, you will see a considerable downturn in the revenue received from Amazon but when the quartely VAT return is done, you will find that the amount owing to the HMRC will be considerably less as Amazon has already deducted this and you now apply Amazon fees in the reclaim.
