New Seller Help With VAT
Hi everyone,
I’m a new seller on Amazon using FBA and my small business is registered in UK for Vat.
I’m confused with accounting on Amazon website, so i wonder if there is a simple answer to these questions.
1 ) When i get paid by Amazon for goods sold - does this payment include 20% UK VAT ? Ie - do i have to give 20% of this payment to HMRC on my quarterly vat return, or is vat already deducted by Amazon before payments are made to me?
2 ) Where do i find a breakdown of sales and costs and vat on Amazon website - it’s so confusing!
Any advice would be greatly appreciated.
Thanks !
29 replies
Seller_7VbclcPFFRTnc
If you are in uk and are uk vat registered, amazon payout includes the vat that you need to remit on your quartet return
All figures can be found in reports - tax document library as well as reports - payments - date range reports
I strongly suggest you speak with an accountant who is knowledgeable on amazon sales and vat
Edit - if you are in uk yourself , have you reached the £85k threshold yet ?
Seller_DTufFoxJuMU0M
I think you’re all getting pedantic and defensive.
Peter just meant it as a rough statement to explain the difference between flat rate and standard rate. That on standard rate you take 16.67% of your turnover (less vat from expenses) to the vat man, but with flat rate you pay a set fee. It was correct the OP who thought he owed 20% of his turnover to the Vat man
I am sure no-one who is vat registered is actually paying the vat man 20% or 16% of their turnover, and would be working the vat out correctly.
Lets not overcomplicate things for the sake of arguing and just agree to disagree and move on.
