VAT Query -New Seller
Good Evening,
My question is regarding VAT on selling fees . I already went through number of posts in the forum regarding VAT but there is lot of confusion due to different type of replies.
New Seller , Limited Company UK not VAT registered because starting my business now so falling under £85000. Planning to do FBA in UK only .
I checked on Amazon Revenue Calculator and it charge 20% Vat under other cost.
I read in some post that I have to open case on Amazon . I should mention in case that I am uk registered limited company and have VAT exemption because I am under £85000 and attach certificate of incorporation.
I really appreciate if you can guide whether this method is right or not.
Thanks
VAT Query -New Seller
Good Evening,
My question is regarding VAT on selling fees . I already went through number of posts in the forum regarding VAT but there is lot of confusion due to different type of replies.
New Seller , Limited Company UK not VAT registered because starting my business now so falling under £85000. Planning to do FBA in UK only .
I checked on Amazon Revenue Calculator and it charge 20% Vat under other cost.
I read in some post that I have to open case on Amazon . I should mention in case that I am uk registered limited company and have VAT exemption because I am under £85000 and attach certificate of incorporation.
I really appreciate if you can guide whether this method is right or not.
Thanks
Seller_7VbclcPFFRTnc
No they won’t - except for advertising
But as I mentioned before, you’ll need to ‘amend’ your vatable turnover by adding your seller fee invoices
So if your 12 month turnover is £71000 and your amazon seller fees come to £15000, the total vatable turnover becomes £86000 so you’ll have to register for vat
13 replies
Seller_BS5lg2keRs2QO
Just to note, if you are using Amazon’s calculator then it is showing you the VAT on the item itself, not the VAT on their fees.
Seller_BS5lg2keRs2QO
Amazon are just showing you the VAT due on the item for information. If you aren’t VAT registered then you can just change the 20% to 0 since Amazon aren’t charging that amount.
What they don’t show you is the VAT due on their fees. So whatever they show you for “amazon fees” and “fulfilment cost” you need to add 20% to.
Seller_u6FMlWuXufoS7
If I apply for Vat exempt by opening case,Will Amazon still charge me for VAT on amazon fees and fulfillment fees.
Seller_7VbclcPFFRTnc
No they won’t - except for advertising
But as I mentioned before, you’ll need to ‘amend’ your vatable turnover by adding your seller fee invoices
So if your 12 month turnover is £71000 and your amazon seller fees come to £15000, the total vatable turnover becomes £86000 so you’ll have to register for vat
Seller_u6FMlWuXufoS7
Thank you both of you for guiding me. I really appreciate it.
