Accountant saying im owed a VAT refund?
Hi guys,
With the new VAT on fees rule, my accountant is saying that i am overall owed a VAT refund for the qaurter, instead of the usual other way round where I owe HMRC money. I was just wondering if other people are seeing a similar thing?
Please confirm if you guys are seeing that too.
Accountant saying im owed a VAT refund?
Hi guys,
With the new VAT on fees rule, my accountant is saying that i am overall owed a VAT refund for the qaurter, instead of the usual other way round where I owe HMRC money. I was just wondering if other people are seeing a similar thing?
Please confirm if you guys are seeing that too.
25 replies
Seller_QuM1AZgzfU9x4
Businesses will vary, but yes the VAT on fees can now be added to your "this is what VAT i paid column".
Seller_mS10UjVYuuGor
Did you buy a lot of stock last quarter to build up for the Black Friday/Christmas sales?
The only real change was that VAT is now added to referral and FBA fees as advertising has always been VAT billed in the UK. As referral and FBA delivery fees are charged only when you make a sale its unlikely that the VAT on those alone would pucs anyone into VAT refund territory.
Seller_5VsVlvdiDnITx
How have you calculated VAT for the quarter when Amazon still haven't released all of the VAT documents for this quarter?
Seller_T9qNRaWjUhLfS
Yes, this is possiable, obviously it depends if for instance, brought alot of stock for the Christmas.
For instance I usally owed HMRC around £15k-£20k per month in VAT, before the changes, this has dropped to around £3k-£5k a month, in real terms overall your business is still paying exactly the same amount in VAT to HMRC, it's just taken from you by Amazon and paid to HMRC, instead of you paying this amount to HMRC directly.
Personally it's a good thing, it lowers the advantages that business that are not VAT registered, have have over VAT-Registered firms.
I'd much rather that Amazon collected all the sales VAT, on sales like they do on EU Amazon's, then at least all sellers would be paying the same, then would be easier for HMRC to spot VAT-fraud. But that's another matter.
Yes in short there is no reason why HMRC don't owe you a VAT refund, on this quarter, only you know what you have brought that is VAT'able.
Seller_DfMOm9tgJKAex
some months when I invest a lot in stock, equipment etc yes im due a refund
however getting a refund for VAT indicates you've spent more than you have made, so not good in the long run unless its planned
Seller_ae51e0CJoHqCX
The vat liability has stayed the same, it simply means that during this quarter Amazon have taken the VAT out of your selling fees which is now recliamable.
Everyone who has consistent sales will probably notice that the actual payment given to you by Amazon is less than you used to get, but those that are VAT registered will now find that the liability has shifted so the VAT payable is less as in effect you have already paid for it through Amazon.
Not great if you are not VAT registered as this element is not refundable.
Any non VAT registered businesses that are working on tight margins against a vat registered business will find it harder to compete.
It may seem like good news if your accountant is saying you will get a reclaim, but it also means you are just carrying a lot of stock. If you then manage to sell it without replacing as much, your VAT liability will be quite high.
Seller_pZPUigSoKl3Mk
I will have refunds too. Most of our products are 0 rated. From August Amazon moved invoicing to UK and started charging VAT which is more than I have from our sales with standard rate. I like this Amazon move, but definitely I will have a visit from tax man.
Seller_TH9DATW06Doc2
A lot of sellers are obvlious to VAT now being charged on seller fees as of August 1st. There was a notification way back and at the time I asked my partner to check if fees were now being added which technically they were not at the time as it had yet to take effect. Even then it's hard to notice since it's an easy assumption and to carry on as usual. To confirm yourself check an invoice from amazon before and after august 1st. You will see billing entity is now a UK amazon address and no longer European. You will also see how much vat has been charged which they previously never had on the invoice.
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22
Other discussion regarding this .
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/5aaef548-bd96-4305-a88e-98bfabdbdced?postId=e9c147a2-6c6b-4a7f-b2c0-ae27b11023d8
Seller_Nx3Da5XPngGEm
So, does this mean your VAT expenses were higher than your actual VAT due on your turnover at 20%? did you check this, or are you referring to something else?
For example, VAT on invoices from your suppliers and VAT on your postage costs and Amazon seller fees. You added these up and it amounts to more than what you owe in VAT on your sales (turnover)?
Just making sure I am not missing anything here as well haha.
I'd appreciate your reply!
Accountant saying im owed a VAT refund?
Hi guys,
With the new VAT on fees rule, my accountant is saying that i am overall owed a VAT refund for the qaurter, instead of the usual other way round where I owe HMRC money. I was just wondering if other people are seeing a similar thing?
Please confirm if you guys are seeing that too.
Accountant saying im owed a VAT refund?
Hi guys,
With the new VAT on fees rule, my accountant is saying that i am overall owed a VAT refund for the qaurter, instead of the usual other way round where I owe HMRC money. I was just wondering if other people are seeing a similar thing?
Please confirm if you guys are seeing that too.
Accountant saying im owed a VAT refund?
Hi guys,
With the new VAT on fees rule, my accountant is saying that i am overall owed a VAT refund for the qaurter, instead of the usual other way round where I owe HMRC money. I was just wondering if other people are seeing a similar thing?
Please confirm if you guys are seeing that too.
25 replies
25 replies
Seller_QuM1AZgzfU9x4
Businesses will vary, but yes the VAT on fees can now be added to your "this is what VAT i paid column".
Seller_mS10UjVYuuGor
Did you buy a lot of stock last quarter to build up for the Black Friday/Christmas sales?
The only real change was that VAT is now added to referral and FBA fees as advertising has always been VAT billed in the UK. As referral and FBA delivery fees are charged only when you make a sale its unlikely that the VAT on those alone would pucs anyone into VAT refund territory.
Seller_5VsVlvdiDnITx
How have you calculated VAT for the quarter when Amazon still haven't released all of the VAT documents for this quarter?
Seller_T9qNRaWjUhLfS
Yes, this is possiable, obviously it depends if for instance, brought alot of stock for the Christmas.
For instance I usally owed HMRC around £15k-£20k per month in VAT, before the changes, this has dropped to around £3k-£5k a month, in real terms overall your business is still paying exactly the same amount in VAT to HMRC, it's just taken from you by Amazon and paid to HMRC, instead of you paying this amount to HMRC directly.
Personally it's a good thing, it lowers the advantages that business that are not VAT registered, have have over VAT-Registered firms.
I'd much rather that Amazon collected all the sales VAT, on sales like they do on EU Amazon's, then at least all sellers would be paying the same, then would be easier for HMRC to spot VAT-fraud. But that's another matter.
Yes in short there is no reason why HMRC don't owe you a VAT refund, on this quarter, only you know what you have brought that is VAT'able.
Seller_DfMOm9tgJKAex
some months when I invest a lot in stock, equipment etc yes im due a refund
however getting a refund for VAT indicates you've spent more than you have made, so not good in the long run unless its planned
Seller_ae51e0CJoHqCX
The vat liability has stayed the same, it simply means that during this quarter Amazon have taken the VAT out of your selling fees which is now recliamable.
Everyone who has consistent sales will probably notice that the actual payment given to you by Amazon is less than you used to get, but those that are VAT registered will now find that the liability has shifted so the VAT payable is less as in effect you have already paid for it through Amazon.
Not great if you are not VAT registered as this element is not refundable.
Any non VAT registered businesses that are working on tight margins against a vat registered business will find it harder to compete.
It may seem like good news if your accountant is saying you will get a reclaim, but it also means you are just carrying a lot of stock. If you then manage to sell it without replacing as much, your VAT liability will be quite high.
Seller_pZPUigSoKl3Mk
I will have refunds too. Most of our products are 0 rated. From August Amazon moved invoicing to UK and started charging VAT which is more than I have from our sales with standard rate. I like this Amazon move, but definitely I will have a visit from tax man.
Seller_TH9DATW06Doc2
A lot of sellers are obvlious to VAT now being charged on seller fees as of August 1st. There was a notification way back and at the time I asked my partner to check if fees were now being added which technically they were not at the time as it had yet to take effect. Even then it's hard to notice since it's an easy assumption and to carry on as usual. To confirm yourself check an invoice from amazon before and after august 1st. You will see billing entity is now a UK amazon address and no longer European. You will also see how much vat has been charged which they previously never had on the invoice.
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22
Other discussion regarding this .
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/5aaef548-bd96-4305-a88e-98bfabdbdced?postId=e9c147a2-6c6b-4a7f-b2c0-ae27b11023d8
Seller_Nx3Da5XPngGEm
So, does this mean your VAT expenses were higher than your actual VAT due on your turnover at 20%? did you check this, or are you referring to something else?
For example, VAT on invoices from your suppliers and VAT on your postage costs and Amazon seller fees. You added these up and it amounts to more than what you owe in VAT on your sales (turnover)?
Just making sure I am not missing anything here as well haha.
I'd appreciate your reply!
Seller_QuM1AZgzfU9x4
Businesses will vary, but yes the VAT on fees can now be added to your "this is what VAT i paid column".
Seller_QuM1AZgzfU9x4
Businesses will vary, but yes the VAT on fees can now be added to your "this is what VAT i paid column".
Seller_mS10UjVYuuGor
Did you buy a lot of stock last quarter to build up for the Black Friday/Christmas sales?
The only real change was that VAT is now added to referral and FBA fees as advertising has always been VAT billed in the UK. As referral and FBA delivery fees are charged only when you make a sale its unlikely that the VAT on those alone would pucs anyone into VAT refund territory.
Seller_mS10UjVYuuGor
Did you buy a lot of stock last quarter to build up for the Black Friday/Christmas sales?
The only real change was that VAT is now added to referral and FBA fees as advertising has always been VAT billed in the UK. As referral and FBA delivery fees are charged only when you make a sale its unlikely that the VAT on those alone would pucs anyone into VAT refund territory.
Seller_5VsVlvdiDnITx
How have you calculated VAT for the quarter when Amazon still haven't released all of the VAT documents for this quarter?
Seller_5VsVlvdiDnITx
How have you calculated VAT for the quarter when Amazon still haven't released all of the VAT documents for this quarter?
Seller_T9qNRaWjUhLfS
Yes, this is possiable, obviously it depends if for instance, brought alot of stock for the Christmas.
For instance I usally owed HMRC around £15k-£20k per month in VAT, before the changes, this has dropped to around £3k-£5k a month, in real terms overall your business is still paying exactly the same amount in VAT to HMRC, it's just taken from you by Amazon and paid to HMRC, instead of you paying this amount to HMRC directly.
Personally it's a good thing, it lowers the advantages that business that are not VAT registered, have have over VAT-Registered firms.
I'd much rather that Amazon collected all the sales VAT, on sales like they do on EU Amazon's, then at least all sellers would be paying the same, then would be easier for HMRC to spot VAT-fraud. But that's another matter.
Yes in short there is no reason why HMRC don't owe you a VAT refund, on this quarter, only you know what you have brought that is VAT'able.
Seller_T9qNRaWjUhLfS
Yes, this is possiable, obviously it depends if for instance, brought alot of stock for the Christmas.
For instance I usally owed HMRC around £15k-£20k per month in VAT, before the changes, this has dropped to around £3k-£5k a month, in real terms overall your business is still paying exactly the same amount in VAT to HMRC, it's just taken from you by Amazon and paid to HMRC, instead of you paying this amount to HMRC directly.
Personally it's a good thing, it lowers the advantages that business that are not VAT registered, have have over VAT-Registered firms.
I'd much rather that Amazon collected all the sales VAT, on sales like they do on EU Amazon's, then at least all sellers would be paying the same, then would be easier for HMRC to spot VAT-fraud. But that's another matter.
Yes in short there is no reason why HMRC don't owe you a VAT refund, on this quarter, only you know what you have brought that is VAT'able.
Seller_DfMOm9tgJKAex
some months when I invest a lot in stock, equipment etc yes im due a refund
however getting a refund for VAT indicates you've spent more than you have made, so not good in the long run unless its planned
Seller_DfMOm9tgJKAex
some months when I invest a lot in stock, equipment etc yes im due a refund
however getting a refund for VAT indicates you've spent more than you have made, so not good in the long run unless its planned
Seller_ae51e0CJoHqCX
The vat liability has stayed the same, it simply means that during this quarter Amazon have taken the VAT out of your selling fees which is now recliamable.
Everyone who has consistent sales will probably notice that the actual payment given to you by Amazon is less than you used to get, but those that are VAT registered will now find that the liability has shifted so the VAT payable is less as in effect you have already paid for it through Amazon.
Not great if you are not VAT registered as this element is not refundable.
Any non VAT registered businesses that are working on tight margins against a vat registered business will find it harder to compete.
It may seem like good news if your accountant is saying you will get a reclaim, but it also means you are just carrying a lot of stock. If you then manage to sell it without replacing as much, your VAT liability will be quite high.
Seller_ae51e0CJoHqCX
The vat liability has stayed the same, it simply means that during this quarter Amazon have taken the VAT out of your selling fees which is now recliamable.
Everyone who has consistent sales will probably notice that the actual payment given to you by Amazon is less than you used to get, but those that are VAT registered will now find that the liability has shifted so the VAT payable is less as in effect you have already paid for it through Amazon.
Not great if you are not VAT registered as this element is not refundable.
Any non VAT registered businesses that are working on tight margins against a vat registered business will find it harder to compete.
It may seem like good news if your accountant is saying you will get a reclaim, but it also means you are just carrying a lot of stock. If you then manage to sell it without replacing as much, your VAT liability will be quite high.
Seller_pZPUigSoKl3Mk
I will have refunds too. Most of our products are 0 rated. From August Amazon moved invoicing to UK and started charging VAT which is more than I have from our sales with standard rate. I like this Amazon move, but definitely I will have a visit from tax man.
Seller_pZPUigSoKl3Mk
I will have refunds too. Most of our products are 0 rated. From August Amazon moved invoicing to UK and started charging VAT which is more than I have from our sales with standard rate. I like this Amazon move, but definitely I will have a visit from tax man.
Seller_TH9DATW06Doc2
A lot of sellers are obvlious to VAT now being charged on seller fees as of August 1st. There was a notification way back and at the time I asked my partner to check if fees were now being added which technically they were not at the time as it had yet to take effect. Even then it's hard to notice since it's an easy assumption and to carry on as usual. To confirm yourself check an invoice from amazon before and after august 1st. You will see billing entity is now a UK amazon address and no longer European. You will also see how much vat has been charged which they previously never had on the invoice.
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22
Other discussion regarding this .
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/5aaef548-bd96-4305-a88e-98bfabdbdced?postId=e9c147a2-6c6b-4a7f-b2c0-ae27b11023d8
Seller_TH9DATW06Doc2
A lot of sellers are obvlious to VAT now being charged on seller fees as of August 1st. There was a notification way back and at the time I asked my partner to check if fees were now being added which technically they were not at the time as it had yet to take effect. Even then it's hard to notice since it's an easy assumption and to carry on as usual. To confirm yourself check an invoice from amazon before and after august 1st. You will see billing entity is now a UK amazon address and no longer European. You will also see how much vat has been charged which they previously never had on the invoice.
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22
Other discussion regarding this .
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/5aaef548-bd96-4305-a88e-98bfabdbdced?postId=e9c147a2-6c6b-4a7f-b2c0-ae27b11023d8
Seller_Nx3Da5XPngGEm
So, does this mean your VAT expenses were higher than your actual VAT due on your turnover at 20%? did you check this, or are you referring to something else?
For example, VAT on invoices from your suppliers and VAT on your postage costs and Amazon seller fees. You added these up and it amounts to more than what you owe in VAT on your sales (turnover)?
Just making sure I am not missing anything here as well haha.
I'd appreciate your reply!
Seller_Nx3Da5XPngGEm
So, does this mean your VAT expenses were higher than your actual VAT due on your turnover at 20%? did you check this, or are you referring to something else?
For example, VAT on invoices from your suppliers and VAT on your postage costs and Amazon seller fees. You added these up and it amounts to more than what you owe in VAT on your sales (turnover)?
Just making sure I am not missing anything here as well haha.
I'd appreciate your reply!
