How is VAT calculated in the Revenue Calculator in Seller Central?
Hi there,
I am a new seller on Amazon currently trying to work out profit margins on the revenue calculator on seller central.
-
Can anyone explain how the VAT section works in the calculator? It’s really confusing me… For example, if I list my item price in the calculator as £10, and choose VAT at 20%, the calculator lists the VAT at £1.67.
-
How has it calculated my VAT at £1.67
I’m thinking it’s something to do with the VAT on the ‘Amazon Fees’ and ‘Fulfilment cost’. However, I can’t seem to balance it out from my calculations.
Here are the figures:
Item Price: £10
Amazon fees: £2.28
Fulfilment costs: £2.81
Storage cost: £0 (for the purpose of the example)
Estimated VAT @20%: £1.67 ???
Cost of goods sold: £1
Any help here would be really appreciated. Causing me an awful headache…
Best,
Adam
How is VAT calculated in the Revenue Calculator in Seller Central?
Hi there,
I am a new seller on Amazon currently trying to work out profit margins on the revenue calculator on seller central.
-
Can anyone explain how the VAT section works in the calculator? It’s really confusing me… For example, if I list my item price in the calculator as £10, and choose VAT at 20%, the calculator lists the VAT at £1.67.
-
How has it calculated my VAT at £1.67
I’m thinking it’s something to do with the VAT on the ‘Amazon Fees’ and ‘Fulfilment cost’. However, I can’t seem to balance it out from my calculations.
Here are the figures:
Item Price: £10
Amazon fees: £2.28
Fulfilment costs: £2.81
Storage cost: £0 (for the purpose of the example)
Estimated VAT @20%: £1.67 ???
Cost of goods sold: £1
Any help here would be really appreciated. Causing me an awful headache…
Best,
Adam
33 replies
Seller_DTufFoxJuMU0M
£1.67 is the vat included on a £10 sale (£8.33+£1.67=£10.00)
Presumably if you are a new seller, then you aren’t vat registered (unless you live outside the UK and are planning on storing stock here), so you can put 0% vat into the box because you don’t collect VAT on your sales.
Don’t forget to add vat onto the Amazon fees though, I’m not sure it accounts for that
Seller_WMvrkz07b44VY
Hi,
That is correct calculations in Revenue calculator.
The simple formula to take out VAT from your Selling price is either you divide
10/1.2 = £8.33
or
10/6 = £1.667
Now you sum these you’ll get the same result.
Such as your buying price is £2.00 + VAT.
Your supplier then charges you VAT on £2.00, right? Lets sum this one as well.
Including VAT in buying price (2.00)
2.00 * 1.2 = £2.40
Excluding VAT from total invoiced price (2.40)
2.40 / 1.2 = £2.00
Taking out just VAT amount from total invoiced price (2.40)
2.40 / 6 = £0.40
I hope this helps.
Seller_DTufFoxJuMU0M
Will you have enough storage space for all the stock?
I know Amazon usually start storage off quite small until you prove to them you can utilise your space correctly, and on other side items shipped direct from the manufacturer in China usualy have quite hefty MOQ’s
