VAT taxable turnover - £90K threshold (inclusive of FBA fees)?
Hello, This accounting yeat I have come close to the VAT threshold (including all Amazon "expenses" such as FBA fees).
These expenses come to almost £20K (roughly half of which are FBA fees {carriage, warehousing etc}).
Should I be including FBA fees when calculating my VAT taxable turnover?
Thanks
VAT taxable turnover - £90K threshold (inclusive of FBA fees)?
Hello, This accounting yeat I have come close to the VAT threshold (including all Amazon "expenses" such as FBA fees).
These expenses come to almost £20K (roughly half of which are FBA fees {carriage, warehousing etc}).
Should I be including FBA fees when calculating my VAT taxable turnover?
Thanks
0 replies
Seller_MT8rt0A2OpbCx
Turnover is sales, i.e. the total of what the customers pay including postage they pay, in a rolling 12 month period, for all platforms or outlets you sell in.
Seller_mS10UjVYuuGor
The way you phrase the question is odd. Amazon fees are part of your business expenses that you could potentially reclaim the VAT on rather than included in your VAT taxable turnover.
Your turnover is your sales revenue (from all channels).
Your expenses are your stock, shipping, Amazon expenses, advertising etc etc.
If your sales revenue is at or close to £90K you need to look at registering for VAT.
If your expenses are at or close to £90K you may wish to look at registering for VAT as it maybe beneficial to you.
If your turnover (sales) are £70K and your expenses (inc Amazon fees) are £50K it may not be time to register for VAT yet.
If you are unsure on any point the best person to seek advice from is an accountant.
Seller_RlZVPg3d6ZUGP
Remember also that its not the amount that hits your bank account, its actual sales
Seller_w0NuiqSLJxWvi
Still odd how you have worded this:
'My sales (including all expenses) was £83K after expenses of £20K (including FBA fees) I had £63K hit my bank account over the year.'
Your turnover is the overall sales from all channels like said in the other replies. I hope your not saying your sales are 83k plus the 20k expenses therefore creating a turnover of 103k? Did you mean your oversall sales (turnover) were 83k but after the 20k expenses taken off you made a profit of 63k?
Seller_6bABtHBnJ50Yb
Your turnover is the amount of money you have taken in from sales. So if that is 90k and over in the financial year then you have to register for VAT.
Any fees incurred is not a consideration for turnover, that's an expense against your sales used in your final profit/loss for the year.
Seller_sg54Fq7GfBZzn
VAT as others are saying isnt based on Fees, its turnover.
So the moment your sales overall top the figure or rather approach it you have to look to register for VAT.
For external services such as FBA carriage, Amazon charge it and account for it. Unless they are paying you, in which case it would count.
But if its something like, Amazon have charged £5.99 for premium shipping, then thats not your expense. You should be able to pull a report telling you, your total turnover from the document and reports section
Seller_b11h3MR4zGx1G
Before Amazon started invoicing FBA/Seller Fees from UK, these used to be reverse charged and would be added to your turnover. However, these FBA/Sellers fees are now invoiced from their UK company and therefore have the normal 20% VAT applied and no longer need to be reversed charged. Therefore, your turnover figure will not include these expenses.
