Calculating IOSS orders for non VAT registered sellers
I’m a UK non VAT Ltd company
e*ay and Amazon seem to calculate IOSS orders very differently and I need to know which is correct and if I’ve missed clicking some buttons in my Amazon settings.
Say I sell an item for £100 in the UK. I get £100 - amazon fees
I sell same item on e*ay to Germany.
Buyer gets charged £100 + EU VAT + Shipping fees
so I get £100+shipping -fees
For some reason Amazon are doing the reverse calculation (lets just assume VAT is 20%)
Buyer is being charged £83.33 + EU VAT + shipping -fees
which leaves me with £83.33 +shipping -fees
Amazon are deducting the EU VAT from my selling price instead of charging the buyer extra like e*ay do.
Hope it makes sense - Which marketplace is doing this correctly?
Calculating IOSS orders for non VAT registered sellers
I’m a UK non VAT Ltd company
e*ay and Amazon seem to calculate IOSS orders very differently and I need to know which is correct and if I’ve missed clicking some buttons in my Amazon settings.
Say I sell an item for £100 in the UK. I get £100 - amazon fees
I sell same item on e*ay to Germany.
Buyer gets charged £100 + EU VAT + Shipping fees
so I get £100+shipping -fees
For some reason Amazon are doing the reverse calculation (lets just assume VAT is 20%)
Buyer is being charged £83.33 + EU VAT + shipping -fees
which leaves me with £83.33 +shipping -fees
Amazon are deducting the EU VAT from my selling price instead of charging the buyer extra like e*ay do.
Hope it makes sense - Which marketplace is doing this correctly?
Seller_qZO3ZCjoBXEeL
Amazon are doing it badly/incorrectly. They deduct UK VAT from all export orders regardless of whether the seller is VAT registered or not. They price on the basis that the UK price is inclusive of VAT, when for sellers such as yourself this is incorreect.
For that reason it is strongly recommended that non-VAT registered sellers do not allow EU exports from Amazon.co.uk.*
- you can, in theory, run a complicated method of compensating for this with your EU shipping rates to recover the cost of shipping and the lost VAT value, but that is up to you and will probably result in your prices being uncompetitive.
It would generally be better in this scenario to make your offers on the EU marketplace itself directly factoring in the VAT cost that the buyer has to pay (EU VAT will be charged accordingly even though you are not registered in the UK).
Or you could just not sell on Amazon in the EU which is what a great many of us choose. -because they’ve made such a hash of it.
2 replies
Seller_qZO3ZCjoBXEeL
Amazon are doing it badly/incorrectly. They deduct UK VAT from all export orders regardless of whether the seller is VAT registered or not. They price on the basis that the UK price is inclusive of VAT, when for sellers such as yourself this is incorreect.
For that reason it is strongly recommended that non-VAT registered sellers do not allow EU exports from Amazon.co.uk.*
- you can, in theory, run a complicated method of compensating for this with your EU shipping rates to recover the cost of shipping and the lost VAT value, but that is up to you and will probably result in your prices being uncompetitive.
It would generally be better in this scenario to make your offers on the EU marketplace itself directly factoring in the VAT cost that the buyer has to pay (EU VAT will be charged accordingly even though you are not registered in the UK).
Or you could just not sell on Amazon in the EU which is what a great many of us choose. -because they’ve made such a hash of it.