UK-Based Company- TAX paid on Selling Fees and Amazon Marketing Service, Reclaimable?
Hi, i have registered as a UK-based LTD company on online selling platforms such as Amazon, eBay, and Etsy. I have been on these platforms for about 2 years and have not done tax returns or reclaiming because my annual revenues are under 85,000.
This year, I'm almost reaching the threshold, and I need a professional E-commerce accountant to file my business return and reclaim. Before I reach out to professionals. I have two questions about reclaiming. If anyone can answer?
I have been charged VAT for these selling fees on Amazon over the past two years. Is this amount paid reclaimable?
Another question: I recently discovered in my invoices that I have been paid an additional 20% VAT for Amazon Marketing Service(AMZ) in the past two years, while my company has not been VAT registered. Is this amount paid on Amazon Marketing Service(AMZ) reclaimable?
Thanks
UK-Based Company- TAX paid on Selling Fees and Amazon Marketing Service, Reclaimable?
Hi, i have registered as a UK-based LTD company on online selling platforms such as Amazon, eBay, and Etsy. I have been on these platforms for about 2 years and have not done tax returns or reclaiming because my annual revenues are under 85,000.
This year, I'm almost reaching the threshold, and I need a professional E-commerce accountant to file my business return and reclaim. Before I reach out to professionals. I have two questions about reclaiming. If anyone can answer?
I have been charged VAT for these selling fees on Amazon over the past two years. Is this amount paid reclaimable?
Another question: I recently discovered in my invoices that I have been paid an additional 20% VAT for Amazon Marketing Service(AMZ) in the past two years, while my company has not been VAT registered. Is this amount paid on Amazon Marketing Service(AMZ) reclaimable?
Thanks
6 replies
Seller_RlZVPg3d6ZUGP
just to confirm, a tax return is different from a vat return, assume you have been keeping accounts and meeting the obligations of your limited company?
You need to consult an accountant for proper advice on what you can reclaim etc but vat on advertising is reclaimable, once you go vat registered you will reverse charge fees but there won't be any vat on them
Seller_ZVAz3d5lZuGid
'....and have not done tax returns '
I am sincerely hoping that that is a typo or error in your phrasing, as you must submit an annual tax return. This is in addition to quarterly VAT returns once you do hit the VAT threshold. Just to clarify too, VAT registration is based on turnover, not profit.
Seller_9DYaWkPMIow10
You need to talk with an accountant asap.
With a ltd company you have something called corporation tax and that is currently19% on profits up to £50,000
Seller_hOZNPw7G8FIjl
In addition to the very good advice already given, the VAT threshold is based on a rolling 12 months' turnover - not a calendar year's turnover.
You mentioned reaching the threshold "this year", you may want to check the last 12 months' turnover as you could have already surpassed it
Seller_HwaQlgFnhSuGS
And just to add, that not being VAT registered is why you are being charged VAT. Once you provide a VAT number to Amazon they will no longer charge you VAT, so you would not claim it back on your returns.
**edit** A quick caveat, that even when VAT registered it is always worth checking the Reports>Tax Document library as some invoices still show the VAT element. So although I said they won't charge you VAT, it can vary from service to service. VAT is charged on our advertising.
