VAT Calculation
Hello,
My first VAT return on the regular VAT scheme is coming around and my accountant is away for the next few days.
I have no issues filling out the VAT return but had a question relating to profits.
I always assumed that on the VAT return you would have to declare the amount of VAT you have taken on sales, but my accountant has asked for the total amount that has hit my bank account instead.
This would then mean that my profit sheets should not read "Sale Price/6".
It should surely read what is being taxed after it hits my bank which is "(Sale Price - FBA fee + tax - referral fee + tax) / 6 "
Can anyone clear this up at all please?
Thank you! :)
VAT Calculation
Hello,
My first VAT return on the regular VAT scheme is coming around and my accountant is away for the next few days.
I have no issues filling out the VAT return but had a question relating to profits.
I always assumed that on the VAT return you would have to declare the amount of VAT you have taken on sales, but my accountant has asked for the total amount that has hit my bank account instead.
This would then mean that my profit sheets should not read "Sale Price/6".
It should surely read what is being taxed after it hits my bank which is "(Sale Price - FBA fee + tax - referral fee + tax) / 6 "
Can anyone clear this up at all please?
Thank you! :)
22 replies
Seller_uPuf4V7GDz2aH
Your accountant should be looking at the sale price, not the amount that hits your bank because as you mention this is net of all the fees. Probably best to remind him/her that the fees are taken out before the bank transfer.
What you are saying is basically correct.
Seller_tRuvBEHDedp4q
Perhaps your accountant does not realise that Amazon pays you AFTER deduction of its fees in 2 week intervals. Also with DD+7 policy the transfers from Amazon will be lagging from actual sales date and HMRC will want to use sales date for payment of VAT due - not the date of actual receipt.
You should be using some online accounting software and as others have said you can use LinkMyBooks or another system to pull in the information into it. There is a monthly cost to these services so you need to weigh up if they are worth paying. You can though get all the necessary information from Amazon reports.
Get a report that gives you monthly sales, import into a spreadsheet, and total. Then in the accounting package create an invoice and enter the monthly gross sales (price customer paid + any shipping charge) and calculate the VAT you have collected from that (Gross Sales - (Gross Sales / 1.2)) (assuming all your products are standard rated)
Then enter all business cost invoices and VAT paid - postage, stock, stationery, Amazon fees etc
The accountancy package will then work out the difference between VAT you have collected and VAT you have paid for your VAT Return.
There will be a bank reconciliation part of the accountancy package where you assign payments to/from your bank to various invoices. I personally find it easier to create a dummy bank account that I call Amazon. I mark payments from Amazon as a transfer from Amazon bank to my bank and I mark Amazon fee invoices as being paid from the Amazon bank. At the end of each month I find the amount reported by the package as being in the Amazon bank is very close to what Amazon reports as being held on account.
Seller_w0NuiqSLJxWvi
Your accountant should be asking for the total sale price not NET price. I'd seriously look at another accountant as thats a very simple task your accountant should be very well familiar with.
Seller_yq7Tvs8G9CZYE
Hi use link my books, you will never look back, it posts everything in a matter of seconds against every single drawdown, complete breakdown of shipping the whole lot. thanks
Seller_9idPMYuN5lTTl
Think it was just a breakdown in communication more than anything. He seems to be aware of this, either way.
I was wondering what people use to determine their total sales for a month?
I have my own spreadsheets, of course, but they are always slightly out compared to the various Amazon reports.
For VAT reporting, which of the following do people get their total monthly sales figure from:
1. Sales Dashboard
2. Amazon Fulfilled Shipments report (if only FBA like me)
3. Reports Repository
All of these report a slightly different figure so was unsure as to which to use.
Thank you!
Seller_ExO2KKCwIDvij
The "Tax" figure in the bottom-right of the Date Range Summary Report is basically what I report for Output VAT. This can be confirmed with a Date Range Transaction Report.
