A small VAT question from a person who lives in the vast non-VAT wilderness of the United States
I am selling using FBA on Amazon.co.uk, but haven’t been doing it long – this quarter will be my first VAT filing with HMRC (apart from a zero-revenue filing last quarter, before we’d gotten our inventory in to Amazon). The VAT return seems very simple and straightforward, and I’m working on it now, but had one small question.
Line 7 calls for “Total value of purchases and all other inputs excluding any VAT.” This number will of course principally be the value of the goods which I imported to the UK. But I have monthly invoices from Amazon which indicate the amounts of seller fees and the amounts of FBA fees which were charged, also. No VAT was charged on any of those. Do I include these Amazon invoices as “inputs” on Line 7?
Apologies if that’s a silly question – I’m usually good with these things, but this is my very first experience with VAT filings and I want to be sure I’m doing this right. Any guidance would be much appreciated…
A small VAT question from a person who lives in the vast non-VAT wilderness of the United States
I am selling using FBA on Amazon.co.uk, but haven’t been doing it long – this quarter will be my first VAT filing with HMRC (apart from a zero-revenue filing last quarter, before we’d gotten our inventory in to Amazon). The VAT return seems very simple and straightforward, and I’m working on it now, but had one small question.
Line 7 calls for “Total value of purchases and all other inputs excluding any VAT.” This number will of course principally be the value of the goods which I imported to the UK. But I have monthly invoices from Amazon which indicate the amounts of seller fees and the amounts of FBA fees which were charged, also. No VAT was charged on any of those. Do I include these Amazon invoices as “inputs” on Line 7?
Apologies if that’s a silly question – I’m usually good with these things, but this is my very first experience with VAT filings and I want to be sure I’m doing this right. Any guidance would be much appreciated…
0 replies
Seller_xDtaDZ1Iek9Fq
As you are UK VAT registered, Amazon is netting the VAT from any fees/invoices with you within the EU. According to my accountant, this is how we need to file our VAT returns.
Say the sales of good gross is 12k and the VAT on that will be 2k. quoting my accountant directly
If you are the customer of services supplied to you under the Reverse Charge rules, then you basically need to account for the VAT as the supplier and the customer.
It’s as if you were making the supply to yourself!
** **
Box 1 (output VAT)
Box 4 (input VAT)
Box 6 (value of the deemed supply)
Box 7 (purchase value)
So 2k in box 1 and 4; 10k in box 6 & 7. Provided this is your only sales channel. Otherwise, add those figures to the respective boxes.
For fees, you need to calculate the VAT value so 20% but for sales you need to divide the sales/gross by 6 to get the VAT value.
So item is sold for £12(gross); the VAT is £2 (which you have received) and net is £10.
Amazon Fees is £10 then VAT for that is £2 (which you did not have to pay out but still need to be included).
hope this helps.
