Marketplace withheld tax and VAT tax what is differnet
We have a query regarding marketplace withheld tax. Please explain why Amazon has applied this tax and advise on potential elimination methods. We are an IE-registered company using Amazon FBA services with a UK VAT number.
Also, total sales and income in the statement are big different, Does Income mean Exclude VAT of total sales?
1 reply
Seller_469SU3Aj73sZL
I think you as Irish business are subject to Mandatory Withholding tax 20% OF Earnings returned to your Irish account.. Your accountant should know how to recover this as UK and Ireland have a double tax treaty since 1976,
In the UK this be called a Tax Credit against your tax owed when your year end accounts are done. The name in Ireland maybe different or same.
Your accountant will tell what documentary evidence you will need to submit to Irish Revenue to claim it back
There is a page on Irish Tax treaty if your accountant needs to read it on the gov.uk website
VAT is sales tax as in Ireland not a tax on earnings and yes l know you may have expenses to come out of those earnings and its not all profit...
