VAT refund on selling fees received from Amazon, Now do I have to pay back to VAT man or not?
Hi There,
I applied for the VAT refund on selling fees from Amazon, and after 4 months I received the refund from Amazon.
Now, my question is do I have to return the VAT to HMRC or not? If yes, how I should calculate it or what I should state it to VAT man? As a sales or any other form? which is I don't know?
Because Amazon states as adjustment.
Example- Sales-£10000, Adjustment-£12000
Total-£22000
Questione is, do I have to return the Vat on £22000 or on £10000 (Sales) to HMRC.
My VAT submission is due.
Would appreciate your help.
Thank you
VAT refund on selling fees received from Amazon, Now do I have to pay back to VAT man or not?
Hi There,
I applied for the VAT refund on selling fees from Amazon, and after 4 months I received the refund from Amazon.
Now, my question is do I have to return the VAT to HMRC or not? If yes, how I should calculate it or what I should state it to VAT man? As a sales or any other form? which is I don't know?
Because Amazon states as adjustment.
Example- Sales-£10000, Adjustment-£12000
Total-£22000
Questione is, do I have to return the Vat on £22000 or on £10000 (Sales) to HMRC.
My VAT submission is due.
Would appreciate your help.
Thank you
19 replies
Seller_76AUwmqvSyRIM
Something is very wrong with your figures.
Seller_MT8rt0A2OpbCx
I would think that it depends on what you did with the original VAT when Amazon charged it.
if you were VAT registered, did you claim the VAT back on your returns? As it's LU VAT, not UK, you shouldn't have, although there are other official ways to claim it back, where HMRC presumably can recover it from Luxemburg. If you did claim it back from HMRC, then I would think you need to repay it. You can't have it twice.
If you were not VAT registered or didn't claim it on your VAT returns, then I would think you can keep it. If the £12000 VAT refund you indicate are anywhere near actual, then you must be over the threshold and I presume were VAT registered.
Seller_TufyJDtetbrlU
Sorry to jump on the thread, but how do i know if ive been paying VAT on amazon? im not VAT registered so if ive been charged then im assuming i can claim, how do i find out if ive been charged
Seller_wMT9bRVmyUaZG
If you don't have a financial department that can deal with this, you should probably go and see an accountant.
Seller_l9tiXuWBzyq7F
Ok so if you received your refund for a period when you were not VAT registered and didn't have to (Below £85k threshhold) then you don't need to pay that to HMRC, that's your money to keep. If you were supposed to be registered but did not and received refund for such a period, yes that needs to go to HMRC.
Seller_tRuvBEHDedp4q
Best advice - see an accountant.
Your original question is misleading with those figures. Sales £10000. Adjustment £12000. They make no sense.
Basically, it is VAT on Amazon fees you will be getting back. So if your total sales were £10000, the fees (@20%) would be approx £2200 + VAT = £2640. It is the VAT on the fees (£240) that Amazon will be refunding.
Now whether you are VAT registered or not, that £240 refund should go down on your yearly self assessment income tax return as income. Originally you would have said profit (ignoring other costs) was £10000 - £2640 but now your profit is £10000 - £2200 so you made £240 more than declared.
This bit is confusing me. It is neither (see above)
If you went over the VAT threshold and are now VAT registered and due to start paying VAT on your sales - then, following on from my example then you now owe the VAT on your sales (on £10000 this is £1666,67) and this should be entered on your VAT return (Box 1 I think)
Do not forget to enter into Box 4 (I think) total of any VAT you have paid on invoices to your business - packaging materials, postage, cost of goods etc. The difference between Box 1 and Box 4 is what you will actually owe to HMRC in VAT.
Ignore the fact you have had a VAT refund on the VAT return as this will be taken care of in your Income Tax Self Assessment as explained.
But you really need see an accountant. If you are now VAT registered then you should be using some accountancy software (such as Qiuickbooks or Xero) as part of making tax digital for doing your VAT returns. My advice is find an accountant and they may well recommend a package.
Sakura_Amazon_
@Seller_tRuvBEHDedp4q , wow! Very insightful post.
Thank you all Sellers for sharing your support here!
Sakura
VAT refund on selling fees received from Amazon, Now do I have to pay back to VAT man or not?
Hi There,
I applied for the VAT refund on selling fees from Amazon, and after 4 months I received the refund from Amazon.
Now, my question is do I have to return the VAT to HMRC or not? If yes, how I should calculate it or what I should state it to VAT man? As a sales or any other form? which is I don't know?
Because Amazon states as adjustment.
Example- Sales-£10000, Adjustment-£12000
Total-£22000
Questione is, do I have to return the Vat on £22000 or on £10000 (Sales) to HMRC.
My VAT submission is due.
Would appreciate your help.
Thank you
VAT refund on selling fees received from Amazon, Now do I have to pay back to VAT man or not?
Hi There,
I applied for the VAT refund on selling fees from Amazon, and after 4 months I received the refund from Amazon.
Now, my question is do I have to return the VAT to HMRC or not? If yes, how I should calculate it or what I should state it to VAT man? As a sales or any other form? which is I don't know?
Because Amazon states as adjustment.
Example- Sales-£10000, Adjustment-£12000
Total-£22000
Questione is, do I have to return the Vat on £22000 or on £10000 (Sales) to HMRC.
My VAT submission is due.
Would appreciate your help.
Thank you
VAT refund on selling fees received from Amazon, Now do I have to pay back to VAT man or not?
Hi There,
I applied for the VAT refund on selling fees from Amazon, and after 4 months I received the refund from Amazon.
Now, my question is do I have to return the VAT to HMRC or not? If yes, how I should calculate it or what I should state it to VAT man? As a sales or any other form? which is I don't know?
Because Amazon states as adjustment.
Example- Sales-£10000, Adjustment-£12000
Total-£22000
Questione is, do I have to return the Vat on £22000 or on £10000 (Sales) to HMRC.
My VAT submission is due.
Would appreciate your help.
Thank you
19 replies
19 replies
Seller_76AUwmqvSyRIM
Something is very wrong with your figures.
Seller_MT8rt0A2OpbCx
I would think that it depends on what you did with the original VAT when Amazon charged it.
if you were VAT registered, did you claim the VAT back on your returns? As it's LU VAT, not UK, you shouldn't have, although there are other official ways to claim it back, where HMRC presumably can recover it from Luxemburg. If you did claim it back from HMRC, then I would think you need to repay it. You can't have it twice.
If you were not VAT registered or didn't claim it on your VAT returns, then I would think you can keep it. If the £12000 VAT refund you indicate are anywhere near actual, then you must be over the threshold and I presume were VAT registered.
Seller_TufyJDtetbrlU
Sorry to jump on the thread, but how do i know if ive been paying VAT on amazon? im not VAT registered so if ive been charged then im assuming i can claim, how do i find out if ive been charged
Seller_wMT9bRVmyUaZG
If you don't have a financial department that can deal with this, you should probably go and see an accountant.
Seller_l9tiXuWBzyq7F
Ok so if you received your refund for a period when you were not VAT registered and didn't have to (Below £85k threshhold) then you don't need to pay that to HMRC, that's your money to keep. If you were supposed to be registered but did not and received refund for such a period, yes that needs to go to HMRC.
Seller_tRuvBEHDedp4q
Best advice - see an accountant.
Your original question is misleading with those figures. Sales £10000. Adjustment £12000. They make no sense.
Basically, it is VAT on Amazon fees you will be getting back. So if your total sales were £10000, the fees (@20%) would be approx £2200 + VAT = £2640. It is the VAT on the fees (£240) that Amazon will be refunding.
Now whether you are VAT registered or not, that £240 refund should go down on your yearly self assessment income tax return as income. Originally you would have said profit (ignoring other costs) was £10000 - £2640 but now your profit is £10000 - £2200 so you made £240 more than declared.
This bit is confusing me. It is neither (see above)
If you went over the VAT threshold and are now VAT registered and due to start paying VAT on your sales - then, following on from my example then you now owe the VAT on your sales (on £10000 this is £1666,67) and this should be entered on your VAT return (Box 1 I think)
Do not forget to enter into Box 4 (I think) total of any VAT you have paid on invoices to your business - packaging materials, postage, cost of goods etc. The difference between Box 1 and Box 4 is what you will actually owe to HMRC in VAT.
Ignore the fact you have had a VAT refund on the VAT return as this will be taken care of in your Income Tax Self Assessment as explained.
But you really need see an accountant. If you are now VAT registered then you should be using some accountancy software (such as Qiuickbooks or Xero) as part of making tax digital for doing your VAT returns. My advice is find an accountant and they may well recommend a package.
Sakura_Amazon_
@Seller_tRuvBEHDedp4q , wow! Very insightful post.
Thank you all Sellers for sharing your support here!
Sakura
Seller_76AUwmqvSyRIM
Something is very wrong with your figures.
Seller_76AUwmqvSyRIM
Something is very wrong with your figures.
Seller_MT8rt0A2OpbCx
I would think that it depends on what you did with the original VAT when Amazon charged it.
if you were VAT registered, did you claim the VAT back on your returns? As it's LU VAT, not UK, you shouldn't have, although there are other official ways to claim it back, where HMRC presumably can recover it from Luxemburg. If you did claim it back from HMRC, then I would think you need to repay it. You can't have it twice.
If you were not VAT registered or didn't claim it on your VAT returns, then I would think you can keep it. If the £12000 VAT refund you indicate are anywhere near actual, then you must be over the threshold and I presume were VAT registered.
Seller_MT8rt0A2OpbCx
I would think that it depends on what you did with the original VAT when Amazon charged it.
if you were VAT registered, did you claim the VAT back on your returns? As it's LU VAT, not UK, you shouldn't have, although there are other official ways to claim it back, where HMRC presumably can recover it from Luxemburg. If you did claim it back from HMRC, then I would think you need to repay it. You can't have it twice.
If you were not VAT registered or didn't claim it on your VAT returns, then I would think you can keep it. If the £12000 VAT refund you indicate are anywhere near actual, then you must be over the threshold and I presume were VAT registered.
Seller_TufyJDtetbrlU
Sorry to jump on the thread, but how do i know if ive been paying VAT on amazon? im not VAT registered so if ive been charged then im assuming i can claim, how do i find out if ive been charged
Seller_TufyJDtetbrlU
Sorry to jump on the thread, but how do i know if ive been paying VAT on amazon? im not VAT registered so if ive been charged then im assuming i can claim, how do i find out if ive been charged
Seller_wMT9bRVmyUaZG
If you don't have a financial department that can deal with this, you should probably go and see an accountant.
Seller_wMT9bRVmyUaZG
If you don't have a financial department that can deal with this, you should probably go and see an accountant.
Seller_l9tiXuWBzyq7F
Ok so if you received your refund for a period when you were not VAT registered and didn't have to (Below £85k threshhold) then you don't need to pay that to HMRC, that's your money to keep. If you were supposed to be registered but did not and received refund for such a period, yes that needs to go to HMRC.
Seller_l9tiXuWBzyq7F
Ok so if you received your refund for a period when you were not VAT registered and didn't have to (Below £85k threshhold) then you don't need to pay that to HMRC, that's your money to keep. If you were supposed to be registered but did not and received refund for such a period, yes that needs to go to HMRC.
Seller_tRuvBEHDedp4q
Best advice - see an accountant.
Your original question is misleading with those figures. Sales £10000. Adjustment £12000. They make no sense.
Basically, it is VAT on Amazon fees you will be getting back. So if your total sales were £10000, the fees (@20%) would be approx £2200 + VAT = £2640. It is the VAT on the fees (£240) that Amazon will be refunding.
Now whether you are VAT registered or not, that £240 refund should go down on your yearly self assessment income tax return as income. Originally you would have said profit (ignoring other costs) was £10000 - £2640 but now your profit is £10000 - £2200 so you made £240 more than declared.
This bit is confusing me. It is neither (see above)
If you went over the VAT threshold and are now VAT registered and due to start paying VAT on your sales - then, following on from my example then you now owe the VAT on your sales (on £10000 this is £1666,67) and this should be entered on your VAT return (Box 1 I think)
Do not forget to enter into Box 4 (I think) total of any VAT you have paid on invoices to your business - packaging materials, postage, cost of goods etc. The difference between Box 1 and Box 4 is what you will actually owe to HMRC in VAT.
Ignore the fact you have had a VAT refund on the VAT return as this will be taken care of in your Income Tax Self Assessment as explained.
But you really need see an accountant. If you are now VAT registered then you should be using some accountancy software (such as Qiuickbooks or Xero) as part of making tax digital for doing your VAT returns. My advice is find an accountant and they may well recommend a package.
Seller_tRuvBEHDedp4q
Best advice - see an accountant.
Your original question is misleading with those figures. Sales £10000. Adjustment £12000. They make no sense.
Basically, it is VAT on Amazon fees you will be getting back. So if your total sales were £10000, the fees (@20%) would be approx £2200 + VAT = £2640. It is the VAT on the fees (£240) that Amazon will be refunding.
Now whether you are VAT registered or not, that £240 refund should go down on your yearly self assessment income tax return as income. Originally you would have said profit (ignoring other costs) was £10000 - £2640 but now your profit is £10000 - £2200 so you made £240 more than declared.
This bit is confusing me. It is neither (see above)
If you went over the VAT threshold and are now VAT registered and due to start paying VAT on your sales - then, following on from my example then you now owe the VAT on your sales (on £10000 this is £1666,67) and this should be entered on your VAT return (Box 1 I think)
Do not forget to enter into Box 4 (I think) total of any VAT you have paid on invoices to your business - packaging materials, postage, cost of goods etc. The difference between Box 1 and Box 4 is what you will actually owe to HMRC in VAT.
Ignore the fact you have had a VAT refund on the VAT return as this will be taken care of in your Income Tax Self Assessment as explained.
But you really need see an accountant. If you are now VAT registered then you should be using some accountancy software (such as Qiuickbooks or Xero) as part of making tax digital for doing your VAT returns. My advice is find an accountant and they may well recommend a package.
Sakura_Amazon_
@Seller_tRuvBEHDedp4q , wow! Very insightful post.
Thank you all Sellers for sharing your support here!
Sakura
Sakura_Amazon_
@Seller_tRuvBEHDedp4q , wow! Very insightful post.
Thank you all Sellers for sharing your support here!
Sakura
