Newbie Need Help - VAT and Account Fee
I am totally new to Amazon, I did some searches, finally I registered Amazon UK. here are some questions, hope everyone can help !
1. Amazon charged me £25 for account fee, my understanding is if less than 40 items sold per-month, Amazon will charge on per-item fee basis, is £25 only for deposit or will charge every month despite how many items you sold ?
2. Do I need a VAT number before my FIRST listing submit ? my understanding is if my turn over under £75000 and do not use FBA, I DO NOT need a VAT number, am I wrong ?
3. I found can apply VAT number through Amazon seller central, is this work or I need to register on UK HMRC web site ?
Appreciated if everyone can help me
Newbie Need Help - VAT and Account Fee
I am totally new to Amazon, I did some searches, finally I registered Amazon UK. here are some questions, hope everyone can help !
1. Amazon charged me £25 for account fee, my understanding is if less than 40 items sold per-month, Amazon will charge on per-item fee basis, is £25 only for deposit or will charge every month despite how many items you sold ?
2. Do I need a VAT number before my FIRST listing submit ? my understanding is if my turn over under £75000 and do not use FBA, I DO NOT need a VAT number, am I wrong ?
3. I found can apply VAT number through Amazon seller central, is this work or I need to register on UK HMRC web site ?
Appreciated if everyone can help me
5 replies
Seller_MT8rt0A2OpbCx
You clearly need to do more research. The only reliable sources are Amazon seller university and HMRC. There is a lot of misinformation elsewhere which will cause problems at some point.
1 There are types of accounts and plans. You can downgrade to an individual plan, which has no fixed monthly fee, but higher selling fee. If you have more than 40 sales a month, it would be worth upgrading, but it is not automatic.
2. Do you live in the UK and run your sales from the U.K.? This affects what you need to do.
3. As above. You do need to register as a businesses, probably sole trader, with HMRC if you are U.K based
Seller_ZVAz3d5lZuGid
YES, as above reply you need to do a lot more research before you begin. Some of what I say is repeated in above post, which is correct.
1. The £25.00 (+VAT, so actually £30) is not an account fee as such, but is for the professional selling PLAN. You can be on the individual selling plan which is 90p per sale, so works out cheaper if you sell less than 33/34 items a month.
2. No you do not need a VAT number until your turnover (not profit) reaches £90,000 (not £75,000), UNLESS you do not live in UK and intend to store your goods in UK for FBA, in which case you DO need to be VAT registered.
3. If you are in UK you MUST be registered with HMRC as self-employed (possibly sole-trader) and have an Amazon BUSINESS seller account, not Individual seller account.
Go and read thoroughly Amazon's Seller University - you have a lot to learn before embarking on your journey - it is not simple as Amazon have a lot of rules and policies which must be kept, or your account will be deactivated.
