VAT Question
Hi,
I have a question for you. Can I deduct Amazon costs from the VAT I will pay at the end of the month? I just got my VAT number. I want to make accurate calculations.
VAT Question
Hi,
I have a question for you. Can I deduct Amazon costs from the VAT I will pay at the end of the month? I just got my VAT number. I want to make accurate calculations.
57 replies
Seller_SITNVuZK87zGK
I don’t know but I’d change the subject of your topic from your email address.
Seller_qZO3ZCjoBXEeL
No.
You must remit VAT based on the gross total of sales made (what your customers paid) including any shipping charges etc.
If you are unsure please speak to your accountant. This is not an area to guess or try - it must be right and penalties for getting it wrong are stiff.
Seller_7VbclcPFFRTnc
And if I recall from your other thread, you are not actually in uk but running the business via your boyfriend in uk so it’s doubly important that you speak with an accountant
Seller_esvgLzKXw2YAl
And just to add to the other comments, I hope your aware that VAT must be submitted via MTD now. Strongly advise that you speak to an accountant.
Seller_SHpe5c4eREBFN
The first thing for anyone getting involved in VAT for the first time to do - unless they just delegate everything to an accountant - is to read the HMRC VAT Guide. It’s a hefty tomb but will explain everything. And if you cannot follow/understand it - then leave everything to your accountant.
Seller_wqciCXuQbNS4p
I find that these types of posts really, really, frustrating.
I really take my hat off to all those offering sensible advice, but if you cannot understand the requirements for selling on amazon.co.uk, or be prepared to undertake due dilligence before starting, then you really shouldn’t be doing it.
I almost feel as if a trap door system needs to be introduced whereby basic questions are asked before people are allowed to start the journey. Fail to research means that the questions are answered incorrectly and they fall through the trap door and out of the system before they’ve even started. Save them a lot of heartache, Amazon a lot of heartache, and the tax authorities a lot of heartache.
I’m all for helping newbies, but they really do need to try and help themselves as well.
Apologies for the rant.
Seller_KZhPnqSRrvTv0
Hello
You can only offset VAT laid out by you against VAT on sales, and this is usually done by your accountant.
Amazons selling fees don’t contain VAT if you’ve registered your VAT number with Amazon so there’s nothing to offset, however, return postage fees, whereby sellers have to cover the cost of a customer return, do contain VAT which can be offset, as do Amazon advertising fees, if you use that service.
If you go to reports-payments-date range reports and then generate report, select transaction type and of course the month required. These reports will give a breakdown of everything, they also include any advertising costs and return postage costs. To get the breakdown of VAT paid on these go to reports-tax document library and view merchant buy shipping label and product adds VAT invoice. You can save these and forward to your accountant.
Seller_PsmY3U1LnRbk2
Sounds like you and your accountant need to get something like Link My Books or A2X as these third party software solutions specialise in Amazon. By mapping the settings it will do everything for you in terms of separating out income, expenses and VAT. Check them out! Might help!
Seller_Hg3zznbQySqDE
I will back everyone up here. If your accountant does not know how to calculate UK VAT and you haven’t worked on the profit figures you will achieve after deductions , then you must get these things sorted before it is too late. I have heard that VAT tax people’s attitude is that “Ignorance is no excuse”. VAT is calculated on your turnover not your profit. Corporation tax / Income Tax is calculated on your profit. You can get all your Amazon gross income (turnover) from various reports - suggest you look at Amazon advice.
