Amzon is Now Charging 20 percent TAX on Amzon fees, is everyone affected ?
Hi
Noticed, Amazon is Now charging 20 percent Tax on Amazon fees ( referral fees + fulfilment fees) from 1st of August, Even if Already got VAT exempted status. Do all sellers Noticed this change.
If this is the case small sellers will face the challenge more and No doubt, customers may find more expensive products in coming days, isn't it.
Amzon is Now Charging 20 percent TAX on Amzon fees, is everyone affected ?
Hi
Noticed, Amazon is Now charging 20 percent Tax on Amazon fees ( referral fees + fulfilment fees) from 1st of August, Even if Already got VAT exempted status. Do all sellers Noticed this change.
If this is the case small sellers will face the challenge more and No doubt, customers may find more expensive products in coming days, isn't it.
56 replies
Seller_MT8rt0A2OpbCx
Where have you been? This has been in the news section on Seller Central, forums and an email sent for at least a couple of months. As Amazon are now invoicing from the U.K. for U.K. established sellers, they can't reverse charge and have to add VAT for all.
It doesn't make a difference for those of us who are VAT registered, apart from affecting cash flow, but it does make it a bit fairer for those who pay 20% of profits to HMRC.
I don't know where this VAT exempt status term comes from. Either you are VAT registered or not. If not you pay VAT on most products and services that you buy. If registered you claim it back, but pay VAT on sales. VAT exempt is usually a term used for a very few products out of the scope of VAT, such as insurance, bank charges, MOTs
Seller_7aV9GGKijpErb
good! you small sellers try and undercut prices on a massive market place marketpalce against big sellers andd they cannot compete. its about time you small sellers pay yoru taxes when you are not vat registered
Seller_soBD2wwhsVOww
Was anounced months ago,started increasing my prices slowly from first announcement & now have the 20% increase in fees more than covered with no loss of sales & no drop in margin.
Seller_d8YGbIjNqwFxn
I doubt many products will become more expensive.
All the big sellers are VAT registered and will be able to claim the VAT on fees back.
It will impact smaller sellers though and the choice is to raise prices, absorb the additional cost or become VAT registered (although this might still mean raising prices)
Seller_GJP3Cbt07uSu0
As many have already pointed out - this playing field has now been leveled and the tax exemption status has been removed from 1st August. It has been widely reported. Many have not spotted and many never will. Sadly many sellers rarely check that they are actually making money.
Seller_raHZbxvpfgJs3
Yes this has been discussed and warned for months now.
Seller_raHZbxvpfgJs3
The prices wont go up because the majority of larger sellers are VAT registered. Are you based in the UK?
Seller_WMvjCbMGpzh7I
As a small seller under the 90K VAT threshold we've always been charged VAT on seller fees therefore no change for us.
Seller_IC5dxZRZpcM4T
reverse charge mechanism also meant that you should add the cost of the reverse charged purchases to your sales thus increasing the sales for the purposes of establishing is you were below or above the threshold for registering for VAT. A loophole that if correctly accounted for would mean a lot of sellers should be vat registered, but due to the lack of understanding about the reverse charge mechanism in sure the small traders didnt account for it correctly!
Seller_qjPjvwmMvJ7tV
Good days are ahead.
level playing field around the corner.
