Seller Forums
Sign in
Sign in
imgSign in
ForumsHomeDiscussions
ForumsHomeDiscussions
imgSign in
user profile
Seller_Uo7DjOjHQDtfz

DD+7 reserve policy and VAT

With this new reserve policy coming in, how does this work with the VAT

For example, at the end of the quarter, I will owe that quarter's VAT to HMRC. But Amazon is keeping hold of this money for I don't know how long and may not even pay it out!

So what do I now classify as a sale?

1) when Amazon tells me someone has brought my item.

2) When Amazon actually pays me for a sale.

I'm thinking 2 because until Amazon pays me, I haven't actually sold anything.

427 views
11 replies
Account Health
Tags:Account Health
00
Reply
user profile
Seller_Uo7DjOjHQDtfz

DD+7 reserve policy and VAT

With this new reserve policy coming in, how does this work with the VAT

For example, at the end of the quarter, I will owe that quarter's VAT to HMRC. But Amazon is keeping hold of this money for I don't know how long and may not even pay it out!

So what do I now classify as a sale?

1) when Amazon tells me someone has brought my item.

2) When Amazon actually pays me for a sale.

I'm thinking 2 because until Amazon pays me, I haven't actually sold anything.

Account Health
Tags:Account Health
00
427 views
11 replies
Reply
0 replies
user profile
Seller_k2X0L9mVRT0pW
In reply to: Seller_Uo7DjOjHQDtfz’s post

vat goes on date of sale/invoice and not on when payment received I’m afraid

10
user profile
Seller_VpTps3nNkV8hZ
In reply to: Seller_Uo7DjOjHQDtfz’s post

I pay an accountant to worry about that!

I doubt you'd get into much trouble if you waited on payment but I think it should technically be on invoice. Worse case is that you end up missing two weeks VAT that end up in the following quarter.

00
user profile
Seller_pZPUigSoKl3Mk
In reply to: Seller_Uo7DjOjHQDtfz’s post

This is not about VAT

They will hold all money for about 11–14 days. If you ship on day 2 and customer gets on day 5 You have to add 7 days to get money.

00
user profile
Sarah_Amzn
In reply to: Seller_Uo7DjOjHQDtfz’s post

Hello @Seller_Uo7DjOjHQDtfz,

this is Sarah from Amazon.

A big thank you to the other sellers for their valuable insights.

As mentioned by @Seller_pZPUigSoKl3Mk, the new policy is about the timing of the payments. Sharing with you the help page with detailed information.

Here you can also find information related to VAT payments.

We hope this clarifies the matter but if we can be of further assistance, please let us know.

Regards,

Sarah

00
user profile
Seller_Uo7DjOjHQDtfz
In reply to: Seller_Uo7DjOjHQDtfz’s post

Okay I'll give an example.

If someone turns up at my warehouse on the 31st of March and says they will buy all my stock for 100K, I give them an invoice. They then go away, saying they will be back in three weeks with the money.

Now when I do my VAT, do I include the 100K sale with a 20K VAT liability?

If I do and the person does not show I now owe HMRC 20K that I do not have.

Now transfer this to Amazon.

So if I have Amazon sales with a 20K VAT liability, but Amazon is not giving me the money, can people not see the problem?

Amazon says they need to hold this money for refunds. So if everyone refunds, where's my VAT money on the sales I have just declared?

So technically now a sale is not a sale until after DD+7

30
user profile
Seller_nMvvMNiZTUmR1
In reply to: Seller_Uo7DjOjHQDtfz’s post

To me this is a load of brown stuff...if you can open an account be verified why do they hold payments...i understand refunds need to have some kept back but after 1 year trading on Amazon this should decrease on the level and your account being in good standing.....

40
user profile
Seller_171whtfaYxvhd
In reply to: Seller_Uo7DjOjHQDtfz’s post

I do believe that Amazon should postponed this policy that will take into effect in a few weeks. We need more time to prepared due to the recent issues we all had with the UK/EU unment establishment issues

00
Follow this discussion to be notified of new activity
user profile
Seller_Uo7DjOjHQDtfz

DD+7 reserve policy and VAT

With this new reserve policy coming in, how does this work with the VAT

For example, at the end of the quarter, I will owe that quarter's VAT to HMRC. But Amazon is keeping hold of this money for I don't know how long and may not even pay it out!

So what do I now classify as a sale?

1) when Amazon tells me someone has brought my item.

2) When Amazon actually pays me for a sale.

I'm thinking 2 because until Amazon pays me, I haven't actually sold anything.

427 views
11 replies
Account Health
Tags:Account Health
00
Reply
user profile
Seller_Uo7DjOjHQDtfz

DD+7 reserve policy and VAT

With this new reserve policy coming in, how does this work with the VAT

For example, at the end of the quarter, I will owe that quarter's VAT to HMRC. But Amazon is keeping hold of this money for I don't know how long and may not even pay it out!

So what do I now classify as a sale?

1) when Amazon tells me someone has brought my item.

2) When Amazon actually pays me for a sale.

I'm thinking 2 because until Amazon pays me, I haven't actually sold anything.

Account Health
Tags:Account Health
00
427 views
11 replies
Reply
user profile

DD+7 reserve policy and VAT

by Seller_Uo7DjOjHQDtfz

With this new reserve policy coming in, how does this work with the VAT

For example, at the end of the quarter, I will owe that quarter's VAT to HMRC. But Amazon is keeping hold of this money for I don't know how long and may not even pay it out!

So what do I now classify as a sale?

1) when Amazon tells me someone has brought my item.

2) When Amazon actually pays me for a sale.

I'm thinking 2 because until Amazon pays me, I haven't actually sold anything.

Account Health
Tags:Account Health
00
427 views
11 replies
Reply
0 replies
0 replies
Quick filters
Sort by
user profile
Seller_k2X0L9mVRT0pW
In reply to: Seller_Uo7DjOjHQDtfz’s post

vat goes on date of sale/invoice and not on when payment received I’m afraid

10
user profile
Seller_VpTps3nNkV8hZ
In reply to: Seller_Uo7DjOjHQDtfz’s post

I pay an accountant to worry about that!

I doubt you'd get into much trouble if you waited on payment but I think it should technically be on invoice. Worse case is that you end up missing two weeks VAT that end up in the following quarter.

00
user profile
Seller_pZPUigSoKl3Mk
In reply to: Seller_Uo7DjOjHQDtfz’s post

This is not about VAT

They will hold all money for about 11–14 days. If you ship on day 2 and customer gets on day 5 You have to add 7 days to get money.

00
user profile
Sarah_Amzn
In reply to: Seller_Uo7DjOjHQDtfz’s post

Hello @Seller_Uo7DjOjHQDtfz,

this is Sarah from Amazon.

A big thank you to the other sellers for their valuable insights.

As mentioned by @Seller_pZPUigSoKl3Mk, the new policy is about the timing of the payments. Sharing with you the help page with detailed information.

Here you can also find information related to VAT payments.

We hope this clarifies the matter but if we can be of further assistance, please let us know.

Regards,

Sarah

00
user profile
Seller_Uo7DjOjHQDtfz
In reply to: Seller_Uo7DjOjHQDtfz’s post

Okay I'll give an example.

If someone turns up at my warehouse on the 31st of March and says they will buy all my stock for 100K, I give them an invoice. They then go away, saying they will be back in three weeks with the money.

Now when I do my VAT, do I include the 100K sale with a 20K VAT liability?

If I do and the person does not show I now owe HMRC 20K that I do not have.

Now transfer this to Amazon.

So if I have Amazon sales with a 20K VAT liability, but Amazon is not giving me the money, can people not see the problem?

Amazon says they need to hold this money for refunds. So if everyone refunds, where's my VAT money on the sales I have just declared?

So technically now a sale is not a sale until after DD+7

30
user profile
Seller_nMvvMNiZTUmR1
In reply to: Seller_Uo7DjOjHQDtfz’s post

To me this is a load of brown stuff...if you can open an account be verified why do they hold payments...i understand refunds need to have some kept back but after 1 year trading on Amazon this should decrease on the level and your account being in good standing.....

40
user profile
Seller_171whtfaYxvhd
In reply to: Seller_Uo7DjOjHQDtfz’s post

I do believe that Amazon should postponed this policy that will take into effect in a few weeks. We need more time to prepared due to the recent issues we all had with the UK/EU unment establishment issues

00
Follow this discussion to be notified of new activity
user profile
Seller_k2X0L9mVRT0pW
In reply to: Seller_Uo7DjOjHQDtfz’s post

vat goes on date of sale/invoice and not on when payment received I’m afraid

10
user profile
Seller_k2X0L9mVRT0pW
In reply to: Seller_Uo7DjOjHQDtfz’s post

vat goes on date of sale/invoice and not on when payment received I’m afraid

10
Reply
user profile
Seller_VpTps3nNkV8hZ
In reply to: Seller_Uo7DjOjHQDtfz’s post

I pay an accountant to worry about that!

I doubt you'd get into much trouble if you waited on payment but I think it should technically be on invoice. Worse case is that you end up missing two weeks VAT that end up in the following quarter.

00
user profile
Seller_VpTps3nNkV8hZ
In reply to: Seller_Uo7DjOjHQDtfz’s post

I pay an accountant to worry about that!

I doubt you'd get into much trouble if you waited on payment but I think it should technically be on invoice. Worse case is that you end up missing two weeks VAT that end up in the following quarter.

00
Reply
user profile
Seller_pZPUigSoKl3Mk
In reply to: Seller_Uo7DjOjHQDtfz’s post

This is not about VAT

They will hold all money for about 11–14 days. If you ship on day 2 and customer gets on day 5 You have to add 7 days to get money.

00
user profile
Seller_pZPUigSoKl3Mk
In reply to: Seller_Uo7DjOjHQDtfz’s post

This is not about VAT

They will hold all money for about 11–14 days. If you ship on day 2 and customer gets on day 5 You have to add 7 days to get money.

00
Reply
user profile
Sarah_Amzn
In reply to: Seller_Uo7DjOjHQDtfz’s post

Hello @Seller_Uo7DjOjHQDtfz,

this is Sarah from Amazon.

A big thank you to the other sellers for their valuable insights.

As mentioned by @Seller_pZPUigSoKl3Mk, the new policy is about the timing of the payments. Sharing with you the help page with detailed information.

Here you can also find information related to VAT payments.

We hope this clarifies the matter but if we can be of further assistance, please let us know.

Regards,

Sarah

00
user profile
Sarah_Amzn
In reply to: Seller_Uo7DjOjHQDtfz’s post

Hello @Seller_Uo7DjOjHQDtfz,

this is Sarah from Amazon.

A big thank you to the other sellers for their valuable insights.

As mentioned by @Seller_pZPUigSoKl3Mk, the new policy is about the timing of the payments. Sharing with you the help page with detailed information.

Here you can also find information related to VAT payments.

We hope this clarifies the matter but if we can be of further assistance, please let us know.

Regards,

Sarah

00
Reply
user profile
Seller_Uo7DjOjHQDtfz
In reply to: Seller_Uo7DjOjHQDtfz’s post

Okay I'll give an example.

If someone turns up at my warehouse on the 31st of March and says they will buy all my stock for 100K, I give them an invoice. They then go away, saying they will be back in three weeks with the money.

Now when I do my VAT, do I include the 100K sale with a 20K VAT liability?

If I do and the person does not show I now owe HMRC 20K that I do not have.

Now transfer this to Amazon.

So if I have Amazon sales with a 20K VAT liability, but Amazon is not giving me the money, can people not see the problem?

Amazon says they need to hold this money for refunds. So if everyone refunds, where's my VAT money on the sales I have just declared?

So technically now a sale is not a sale until after DD+7

30
user profile
Seller_Uo7DjOjHQDtfz
In reply to: Seller_Uo7DjOjHQDtfz’s post

Okay I'll give an example.

If someone turns up at my warehouse on the 31st of March and says they will buy all my stock for 100K, I give them an invoice. They then go away, saying they will be back in three weeks with the money.

Now when I do my VAT, do I include the 100K sale with a 20K VAT liability?

If I do and the person does not show I now owe HMRC 20K that I do not have.

Now transfer this to Amazon.

So if I have Amazon sales with a 20K VAT liability, but Amazon is not giving me the money, can people not see the problem?

Amazon says they need to hold this money for refunds. So if everyone refunds, where's my VAT money on the sales I have just declared?

So technically now a sale is not a sale until after DD+7

30
Reply
user profile
Seller_nMvvMNiZTUmR1
In reply to: Seller_Uo7DjOjHQDtfz’s post

To me this is a load of brown stuff...if you can open an account be verified why do they hold payments...i understand refunds need to have some kept back but after 1 year trading on Amazon this should decrease on the level and your account being in good standing.....

40
user profile
Seller_nMvvMNiZTUmR1
In reply to: Seller_Uo7DjOjHQDtfz’s post

To me this is a load of brown stuff...if you can open an account be verified why do they hold payments...i understand refunds need to have some kept back but after 1 year trading on Amazon this should decrease on the level and your account being in good standing.....

40
Reply
user profile
Seller_171whtfaYxvhd
In reply to: Seller_Uo7DjOjHQDtfz’s post

I do believe that Amazon should postponed this policy that will take into effect in a few weeks. We need more time to prepared due to the recent issues we all had with the UK/EU unment establishment issues

00
user profile
Seller_171whtfaYxvhd
In reply to: Seller_Uo7DjOjHQDtfz’s post

I do believe that Amazon should postponed this policy that will take into effect in a few weeks. We need more time to prepared due to the recent issues we all had with the UK/EU unment establishment issues

00
Reply
Follow this discussion to be notified of new activity