VAT Question
Hi everyone! I have an LTD but I have not yet registered for VAT as it says you should register after earning £80,000. Since I will pay the VAT when selling the products on Amazon, do I need to pay the VAT when ordering from Alibaba? I’m just starting out and I have no idea how the VAT works. Thank you!
VAT Question
Hi everyone! I have an LTD but I have not yet registered for VAT as it says you should register after earning £80,000. Since I will pay the VAT when selling the products on Amazon, do I need to pay the VAT when ordering from Alibaba? I’m just starting out and I have no idea how the VAT works. Thank you!
Seller_fMsCVAHNu4txH
You don’t pay ‘normal’ VAT on imports, although the rates are similar.
With the type of questions you’re asking… Speak to an accountant.
If you don’t have one, get one.
0 replies
Seller_DROodOAYHftnc
The first question is, are you resident in the UK ?
If not and you wish to store goods in UK for FBA then you need to be VAT registered straight away.
The £85000 threshold is only for UK residents.
Have a read of Amazon’s Seller University if you haven’t already - link is ‘Learn’ at bottom of seller homepage.
Also, have to ask - why have you started with a ltd company ? - did you watch some Youtube videos ?Make sure you understand all the requirements and obligations of having a ltd company.
Seller_ILTNDCj7DXuua
If you’re importing from abroad you might also have UK import duty to pay on to of the VAT. You might also want to check that your business insurance covers you for purchases from China as a lot of them will exempt this
Seller_fMsCVAHNu4txH
You don’t pay ‘normal’ VAT on imports, although the rates are similar.
With the type of questions you’re asking… Speak to an accountant.
If you don’t have one, get one.
Seller_tRuvBEHDedp4q
Also to add the VAT registration requirement is scrolling through the year - not just turnover in your financial year
So if month 1 in your financial year you did £3000 turnover, months 2-12 £7000 then in your financial year your turnover will be £80,000
But then Month 13 you turnover £8000 - you now have to register for VAT as the last years turnover is £85,000
Seller_ILTNDCj7DXuua
This is true for some of Amazon selling fees, but you then have to account for them as part of your company turnover, which will go towards that £80k VAT limit. You will still pay VAT on advertising fees though.
Seller_0a8JwzVCco9bA
If you purchase via alibaba I recommend you get invoices from the actual supplier for your purchases (do not use alibaba invoices) if ever asked to do so to validate product authenticity. Fully detailed invoices that clearly show any branding/packaging/finishing details specific to your product. In case there are any infringement/duplicate issues with other amazon sellers you will have documented proof of your brand ownership/trademarked brand etc from the manufacturing source.
