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Seller_3CbKyZDwVWePi

New VAT rule for Uk Amazon sellers

Hey so it looks like Amazon are now charging VAT on all their fees such as referral fees, FBA fees, storage etc. etc. Me being a limited company and currently non VAT registered basically it is adding a good chunk of extra costs making me slightly unprofitable/ break even at the best. I wanted to ask does this also apply to UK sole traders/ individual traders that do not run under a public limited company? I have not been able to find any information regarding this currently.

thanks in advance

108 views
6 replies
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Seller_3CbKyZDwVWePi

New VAT rule for Uk Amazon sellers

Hey so it looks like Amazon are now charging VAT on all their fees such as referral fees, FBA fees, storage etc. etc. Me being a limited company and currently non VAT registered basically it is adding a good chunk of extra costs making me slightly unprofitable/ break even at the best. I wanted to ask does this also apply to UK sole traders/ individual traders that do not run under a public limited company? I have not been able to find any information regarding this currently.

thanks in advance

Account Setup
Tags:Policy
00
108 views
6 replies
Reply
6 replies
user profile
Seller_d8YGbIjNqwFxn
In reply to: Seller_3CbKyZDwVWePi’s post

Yes it applies to Sole Traders as well as Limited Companies.

If you are no longer making a profit you will have to either raise your prices or consider going VAT registered so you can reclaim the VAT.

Going VAT registered though may mean you need to increase your prices anyway to take account of the extra 20% VAT that you charge on the sale price.

Full details of the change are here

https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22

40
user profile
Seller_76AUwmqvSyRIM
In reply to: Seller_3CbKyZDwVWePi’s post

The change to the invoicing process was announced quite some time ago and you should have prepared by getting ready to increase your prices on August 1st. Although I appreciate that it is a big chunk of additional costs to you, it's no different to purchasing other goods and services from UK sellers.

It affects all sellers established in the UK but as you know, if you are VAT-registered, you can claim the vat back.

30
user profile
Seller_QuM1AZgzfU9x4
In reply to: Seller_3CbKyZDwVWePi’s post

I'm guessing you had applied for an exemption at some point? Otherwise Amazon has always charged VAT on fees to non-VAT registered sellers.

30
user profile
Seller_3CbKyZDwVWePi
In reply to: Seller_3CbKyZDwVWePi’s post

Thanks for all the responses. I have one final question would it also apply to me if I sell as a private individual? I imagine it would but confirmation would be great.

10
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Seller_3CbKyZDwVWePi

New VAT rule for Uk Amazon sellers

Hey so it looks like Amazon are now charging VAT on all their fees such as referral fees, FBA fees, storage etc. etc. Me being a limited company and currently non VAT registered basically it is adding a good chunk of extra costs making me slightly unprofitable/ break even at the best. I wanted to ask does this also apply to UK sole traders/ individual traders that do not run under a public limited company? I have not been able to find any information regarding this currently.

thanks in advance

108 views
6 replies
Account Setup
Tags:Policy
00
Reply
user profile
Seller_3CbKyZDwVWePi

New VAT rule for Uk Amazon sellers

Hey so it looks like Amazon are now charging VAT on all their fees such as referral fees, FBA fees, storage etc. etc. Me being a limited company and currently non VAT registered basically it is adding a good chunk of extra costs making me slightly unprofitable/ break even at the best. I wanted to ask does this also apply to UK sole traders/ individual traders that do not run under a public limited company? I have not been able to find any information regarding this currently.

thanks in advance

Account Setup
Tags:Policy
00
108 views
6 replies
Reply
user profile

New VAT rule for Uk Amazon sellers

by Seller_3CbKyZDwVWePi

Hey so it looks like Amazon are now charging VAT on all their fees such as referral fees, FBA fees, storage etc. etc. Me being a limited company and currently non VAT registered basically it is adding a good chunk of extra costs making me slightly unprofitable/ break even at the best. I wanted to ask does this also apply to UK sole traders/ individual traders that do not run under a public limited company? I have not been able to find any information regarding this currently.

thanks in advance

Account Setup
Tags:Policy
00
108 views
6 replies
Reply
6 replies
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Seller_d8YGbIjNqwFxn
In reply to: Seller_3CbKyZDwVWePi’s post

Yes it applies to Sole Traders as well as Limited Companies.

If you are no longer making a profit you will have to either raise your prices or consider going VAT registered so you can reclaim the VAT.

Going VAT registered though may mean you need to increase your prices anyway to take account of the extra 20% VAT that you charge on the sale price.

Full details of the change are here

https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22

40
user profile
Seller_76AUwmqvSyRIM
In reply to: Seller_3CbKyZDwVWePi’s post

The change to the invoicing process was announced quite some time ago and you should have prepared by getting ready to increase your prices on August 1st. Although I appreciate that it is a big chunk of additional costs to you, it's no different to purchasing other goods and services from UK sellers.

It affects all sellers established in the UK but as you know, if you are VAT-registered, you can claim the vat back.

30
user profile
Seller_QuM1AZgzfU9x4
In reply to: Seller_3CbKyZDwVWePi’s post

I'm guessing you had applied for an exemption at some point? Otherwise Amazon has always charged VAT on fees to non-VAT registered sellers.

30
user profile
Seller_3CbKyZDwVWePi
In reply to: Seller_3CbKyZDwVWePi’s post

Thanks for all the responses. I have one final question would it also apply to me if I sell as a private individual? I imagine it would but confirmation would be great.

10
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user profile
Seller_d8YGbIjNqwFxn
In reply to: Seller_3CbKyZDwVWePi’s post

Yes it applies to Sole Traders as well as Limited Companies.

If you are no longer making a profit you will have to either raise your prices or consider going VAT registered so you can reclaim the VAT.

Going VAT registered though may mean you need to increase your prices anyway to take account of the extra 20% VAT that you charge on the sale price.

Full details of the change are here

https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22

40
user profile
Seller_d8YGbIjNqwFxn
In reply to: Seller_3CbKyZDwVWePi’s post

Yes it applies to Sole Traders as well as Limited Companies.

If you are no longer making a profit you will have to either raise your prices or consider going VAT registered so you can reclaim the VAT.

Going VAT registered though may mean you need to increase your prices anyway to take account of the extra 20% VAT that you charge on the sale price.

Full details of the change are here

https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22

40
Reply
user profile
Seller_76AUwmqvSyRIM
In reply to: Seller_3CbKyZDwVWePi’s post

The change to the invoicing process was announced quite some time ago and you should have prepared by getting ready to increase your prices on August 1st. Although I appreciate that it is a big chunk of additional costs to you, it's no different to purchasing other goods and services from UK sellers.

It affects all sellers established in the UK but as you know, if you are VAT-registered, you can claim the vat back.

30
user profile
Seller_76AUwmqvSyRIM
In reply to: Seller_3CbKyZDwVWePi’s post

The change to the invoicing process was announced quite some time ago and you should have prepared by getting ready to increase your prices on August 1st. Although I appreciate that it is a big chunk of additional costs to you, it's no different to purchasing other goods and services from UK sellers.

It affects all sellers established in the UK but as you know, if you are VAT-registered, you can claim the vat back.

30
Reply
user profile
Seller_QuM1AZgzfU9x4
In reply to: Seller_3CbKyZDwVWePi’s post

I'm guessing you had applied for an exemption at some point? Otherwise Amazon has always charged VAT on fees to non-VAT registered sellers.

30
user profile
Seller_QuM1AZgzfU9x4
In reply to: Seller_3CbKyZDwVWePi’s post

I'm guessing you had applied for an exemption at some point? Otherwise Amazon has always charged VAT on fees to non-VAT registered sellers.

30
Reply
user profile
Seller_3CbKyZDwVWePi
In reply to: Seller_3CbKyZDwVWePi’s post

Thanks for all the responses. I have one final question would it also apply to me if I sell as a private individual? I imagine it would but confirmation would be great.

10
user profile
Seller_3CbKyZDwVWePi
In reply to: Seller_3CbKyZDwVWePi’s post

Thanks for all the responses. I have one final question would it also apply to me if I sell as a private individual? I imagine it would but confirmation would be great.

10
Reply
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