Does Amazon hold the vat from the items I sale
Hello All
Someone please explain to me....
I am based in the UK and new to the Amazon Seller account. I want to sell Cotton bags. I want to know that, does Amazon keeps the VAT amount from the payment I receive from my sales? If it does, then at the time of my VAT returns, how can I mention that to HMRC? So confusing.
Here I'm not talking about the VAT on Amazon fees, it is about the VAT from my product sales. For example, on the revenue calculator, it shows that from the sales of an item, which is £11.99, Amazon deducts
Amazon fees: £1.91
Fulfilment cost: £3.26
Storage cost: £0.17
Estimated VAT: £2.00 (Does Amazon keep it and forward it to HMRC? )
Estimated cost: £7.33
Net Profit £4.66
That £2.00 VAT is my (company) money, isn't it? If Amazon keeps that £2.00 it affect the cash flow of my company? At the time of VAT filing, how can I convey this on my VAT returns to HMRC, saying these monies are kept by Amazon?
eBay only collects the promoted listing fee and the postage, and pays us back the remaining.
Does Amazon hold the vat from the items I sale
Hello All
Someone please explain to me....
I am based in the UK and new to the Amazon Seller account. I want to sell Cotton bags. I want to know that, does Amazon keeps the VAT amount from the payment I receive from my sales? If it does, then at the time of my VAT returns, how can I mention that to HMRC? So confusing.
Here I'm not talking about the VAT on Amazon fees, it is about the VAT from my product sales. For example, on the revenue calculator, it shows that from the sales of an item, which is £11.99, Amazon deducts
Amazon fees: £1.91
Fulfilment cost: £3.26
Storage cost: £0.17
Estimated VAT: £2.00 (Does Amazon keep it and forward it to HMRC? )
Estimated cost: £7.33
Net Profit £4.66
That £2.00 VAT is my (company) money, isn't it? If Amazon keeps that £2.00 it affect the cash flow of my company? At the time of VAT filing, how can I convey this on my VAT returns to HMRC, saying these monies are kept by Amazon?
eBay only collects the promoted listing fee and the postage, and pays us back the remaining.
4 replies
Seller_ZVAz3d5lZuGid
My first question would be - are you VAT registered ? If you live in UK then you do not need to be VAT registered until your business turnover (not profit) is £95,000
Seller_d8YGbIjNqwFxn
Amazon don't hold the VAT paid by the customer it is part of your disbursements. You then report it on your VAT return and you pay it to HMRC.
You can reclaim the VAT paid on fees and advertising.
It is only for non UK sellers where Amazon hold the VAT and pay it directly to HMRC
