Amazon Fee % from retail price including VAT
Hello,
could someone please help me to understand what is my real cost (to pay Amazon fee) in example of?
sport shoes where category fee is 15%
retail price is 100 EUR including VAT
VAT 21%
Amazon Fee is 15% 100EUR incl VAT therefore I am charged 15 EUR.
However I have to pay tax from 100 EUR of 21%/21 EUR therefore seems like the fee/cost for me is 15%/15 EUR plus also 15% from 21%VAT I have to pay which makes it additional 3,15EUR therefore total cost per 1 product sold Amazon is 18%.
Is it correct?
Thank you
Amazon Fee % from retail price including VAT
Hello,
could someone please help me to understand what is my real cost (to pay Amazon fee) in example of?
sport shoes where category fee is 15%
retail price is 100 EUR including VAT
VAT 21%
Amazon Fee is 15% 100EUR incl VAT therefore I am charged 15 EUR.
However I have to pay tax from 100 EUR of 21%/21 EUR therefore seems like the fee/cost for me is 15%/15 EUR plus also 15% from 21%VAT I have to pay which makes it additional 3,15EUR therefore total cost per 1 product sold Amazon is 18%.
Is it correct?
Thank you
0 replies
Seller_esvgLzKXw2YAl
Are you talking about EFN sales from the UK?
If so, you have to allow for the fact that Amazon will remove the UK VAT portion of the sale first.
Then charge the EU VAT to the customer.
So if you are not VAT registered, you will lose the UK VAT portion of the sale.
So assuming the above. Selling price at 100, less vat is: 83.33
You sell on a site with 21% vat, the total selling price is 100.83
You then pay fees on this of 15% which is a cost of 15.12 +vat.
This in turn leaves you with 100.83 - 18.29 = 82.54
However, Amazon remits the VAT portion of the sale.
Which means the total back to you is the 82.54 less the VAT charged. which leaves 65.04
That’s obviously not including any costs associated with actually fulfilling the order.
But the safest way to work all of this out, is to use the revenue calculator. This will give you total costs etc when using EFN as well.
