IOSS order
New seller here and recently had my first FBA order (yay!). But the sell price charged and the fees charged just seemed completed off to what I listed the item for.
My item was listed for £8.99 and the fee estimator in the inventory section says the fees are £3.15, including £2.42 FBA fee. So far, no issue of course.
However, when the item sold, it went for £9.21. And I received only £7.49 as 'sales', out of which £3.80 was taken as amazon fees. So I received a net of £3.69. Note that I understand the £3.80 fee charged is just 3.15 times 20% VAT so no issue there.
I contacted an associate, and while I did not get an answer during live chat due to technical issues, I received an email today with this breakdown:
They said my product charges were £7.49, when my item is clearly listed for £8.99 and the price has not been changed.
And the product tax has been worked out to £1.72. It looks like this is the VAT rate of 23% applied to Ireland. Meaning £7.49*23% = £1.72 is the VAT.
However, I did not understand this was IOSS until I called seller support via telephone just now. First problem I had is that they said my VAT exclusive price was £7.49, when I am completely certain it is not. I can literally see it on my seller account for £8.99. And I had not changed the price since before the product was sold.
Additionally if the product did sell for £7.49 VAT exclusive, why am I charged the same fee of £3.15 (plus VAT), that was mentioned for a sales price of £8.99.
Also can someone please confirm this only applies to orders to Ireland? I am still basically new to selling on Amazon like mentioned before. I don't sell to the EU or anything like that so no complex customs things to deal with. But if I do sell to Ireland only, then the customer gets charged VAT additionally? Ignoring the other issue of my non VAT price being charged incorrectly perhaps.
Separately, I am also not registered for VAT because I thought that was not needed until crossing £85000 in sales. Is there any sort of VAT exemptions available that anyone knows of. Like on seller fees, fba fees, anything that I might be able to take advantage of?
Update: I tried going to checkout for my item and put in a random address to Dublin. Did not click buy of course. However, the price automatically changed from £8.99 to £9.21. Meaning my VAT exclusive price just becomes £7.49. Why is Amazon allowed to just do this without warning may I ask?
