VAT on products
Hi
I am a new seller on Amazon and have recently created my Amazon FBA seller account. I am a bit confused regarding VAT. I am a UK resident, and at this point, I do not anticipate that the annual sale will cross the threshold of £90k. I would appreciate advice on the following:
1. Will I be charged VAT twice? Once while purchasing products from a wholesaler, and then on the total amount from Amazon?
2. What is the best way for me? Can I get VAT exemption from Amazon? What is the process?
Any help and advice will be highly appreciated.
VAT on products
Hi
I am a new seller on Amazon and have recently created my Amazon FBA seller account. I am a bit confused regarding VAT. I am a UK resident, and at this point, I do not anticipate that the annual sale will cross the threshold of £90k. I would appreciate advice on the following:
1. Will I be charged VAT twice? Once while purchasing products from a wholesaler, and then on the total amount from Amazon?
2. What is the best way for me? Can I get VAT exemption from Amazon? What is the process?
Any help and advice will be highly appreciated.
6 replies
Seller_76AUwmqvSyRIM
1. If you are not VAT-registered, you pay vat on your purchases and also Amazon's fees. You don't pay vat on your sales.
2. You don't need to register for vat unless you are likely to reach the threshold but it may be beneficial for you and it's an option that only you can decide. There is no such thing as vat exemption any more. Being vat registered means that you can reclaim vat that you have paid on your purchases and fees but at the same time, you have to include vat on your sales price that you have to give top the taxman.
Being vat registered is a balancing act if you are below the threshold or a legal requirement if above the threshold.
