Promo Rebates and VAT
Hi
I am tearing my hair out trying to reconcile the figures in the Payments Dashboard for a particular settlement period and the downloaded Monthly Transaction Summary.
WOW! I’m brilliant mathematically but this is an accounting issue I just cannot get my head around.
On one FBA Order, a VAT amount is included and I know how to account for that.
But on another, it says “Shipping Total - Included VAT” and then it is blank and the net value of the shipping is shown.
What appears to be happening is Amazon take £1.25 from the customer and then deduct it from us as a Promo Rebate in the sum of £1.25 but then show an amount of £0.25 (The VAT element) which is then added to the Product Tax Element.
It seems I cannot add the £1.25 shipping to the Product Charges because the figures after deducting other charges do not add up to the correct Net Proceeds - it is £0.25 out!
We use Sage 50.
Can anyone tell me how promo rebates should be treated please? Reverse charge or standard rate VAT?
I cannot believe I cannot work this out. I am in very serious danger of missing our VAT deadline.
Promo Rebates and VAT
Hi
I am tearing my hair out trying to reconcile the figures in the Payments Dashboard for a particular settlement period and the downloaded Monthly Transaction Summary.
WOW! I’m brilliant mathematically but this is an accounting issue I just cannot get my head around.
On one FBA Order, a VAT amount is included and I know how to account for that.
But on another, it says “Shipping Total - Included VAT” and then it is blank and the net value of the shipping is shown.
What appears to be happening is Amazon take £1.25 from the customer and then deduct it from us as a Promo Rebate in the sum of £1.25 but then show an amount of £0.25 (The VAT element) which is then added to the Product Tax Element.
It seems I cannot add the £1.25 shipping to the Product Charges because the figures after deducting other charges do not add up to the correct Net Proceeds - it is £0.25 out!
We use Sage 50.
Can anyone tell me how promo rebates should be treated please? Reverse charge or standard rate VAT?
I cannot believe I cannot work this out. I am in very serious danger of missing our VAT deadline.
1 reply
Seller_fFylOZ9rejlBH
Some additional information.
The Monthly Transaction Summary has a “Shipping Credits Tax” column. Despite the order saying there is no tax on the shipping, there is a £0.25 shipping credit tax. There is also £0.25 in a “Promo Rebates Tax” column.
