VAT UK at 20%
Hi,
the revenue calculator UK keeps flicking to 20%. But, isn't that if I'm not banking in the UK nor registered with Amazon in the UK? Both of which I am.
How do I know what to set my VAT at for my first product? The tax seems reasonable but the VAT at 20% will push me out.
Regards,
VAT UK at 20%
Hi,
the revenue calculator UK keeps flicking to 20%. But, isn't that if I'm not banking in the UK nor registered with Amazon in the UK? Both of which I am.
How do I know what to set my VAT at for my first product? The tax seems reasonable but the VAT at 20% will push me out.
Regards,
4 replies
Seller_d8YGbIjNqwFxn
If you are based in the UK and are below the VAT threshold you don't need to pay the VAT on a sale to HMRC.
For example if you sold a product for £10 the revenue calculator will show the VAT as £1.67. However if you are not VAT registered that £1.67 will just form part of your profit.
Keep an eye though on keeping below the threshold. 90K isn't that large and if your business takes off it will soon push you above the threshold.
You will have to pay VAT on Amazon selling fees even if you are not VAT registered.
