Postal Credits Royal mail
My Royal Mail account is linked to Seller Central. I buy shipping to fulfil orders in Buy Shipping. and get invoiced by RM through my Click&Drop Account.
I've noticed that in the Payment>Transaction View - Amazon credits me the postage and VAT. But this includes all SELF fulfilled shipping labels via Buy Shipping.
So when I do my accounts; I'm declaring labels bought as income, and paying VAT twice?
For 1 Jan - 31 March 2024.
Total Postal Credit (column P) - £975.67
Shipping Credit Tax (column Q) - £196.62
TOTAL £1172.29
When I separate self fulfilled shipping labels:
Total Postal Credit - £371.89
Total Shipping Credit tax - £75.16
For tax return, I have to declare VAT 20% on £1172.29. But when then I pay Royal Mail invoice the VAT also. Thereby paying VAT twice.
Is my reasoning incorrect?
0 replies
Seller_MT8rt0A2OpbCx
Aren't the postal credits what Amazon charge the customer for postage? This is income, just like the items you are selling and is taxable (unless all the products are zero rated). Your Royal Mail invoice is an expense and separate to the postal credits.
Am I right in thinking your are established outside the U.K. and Amazon are collecting VAT on your sales and you are not VAT registered in the U.K.? If you were VAT registered, you would claim back the VAT on RMs invoices.
