Amazon Fee's Reverse Amount


Question to sellers with regards to VAT Reverse that Amazon does on fee’s when your billed by Amazon outside the UK. The invoice you get from Amazon is for the fee with 0% vat as the customer (me) is expected to declare the bill… i.e £10… then add vat to it… then you deduct it off again… so you pay no extra vat as it basically cancels itself out… however the maths isn’t adding up and I was wondering if anyone had a solution…

A2X takes all our data and puts it into xero and part of this is our fee’s which are subject to vat reverse… they’ve advised to select the vat reverse option and this does work, however, it’s treating the invoiced amount in A2X as the gross and not the net… for example I’m billed £10 by Amazon they’re taking 20% from this and considering this as the vat when it should be actually adding 20% to it and then taking that… anyone have an answer :slight_smile:


Amazons invoices are already zero rated so you need to get your account platform to add this rather than take it off the total.

It was fairly straight forward in quick file as a rule but I don’t know how to do it in yours. :see_no_evil:


Thank you for your response. This is what we’d do if we posted our own bill, however, the software we use imports it automatically without VAT and it tallies up with a bill and invoice it creates… Thank you anyway.


Can you manually modify them in the final accounting platform?

Or is there support with A2X to create a custom rule for the amazon invoices?

I’ve created a rule on mine for the seller fees which basically does this:

  • Import Amazon invoice
  • add 20% VAT
  • Apple reverse charge to take off the 20% again

Considering there are many invoices without VAT added That are subject to reverse charge they surely must have a similar method to use on A2X


Are you importing the Amazon details manually or using automatic software? We went with A2X as I know you do Amazon manually via input but because the money is split across multiple months it becomes a nightmare… I have asked A2X but haven’t got a response back yet but it doesn’t appear to be there… and while I could go into the invoice it issues and edit it the total wouldn’t add up… because it creates an invoice to Amazon and a Bill from them and takes the invoice - bill = money paid by Amazon so it adds up to the penny…


I mass import the invoices into QuickFile and have a rule setup against them to automate the above tasks. :sweat_smile:


How are you making sure the data is being reported in the correct month? For example a sale from December might not be reported and paid until January at which point you need to accurately match the payment to that section of sales, even more so if your reporting VAT as it needs to fall in the correct qtr.


I thought it’s about the amazon fees? All of their documents have a fixed tax point so it goes into the month they cover.

As for sales I pull a report of amazon for the month as a spreadsheet and my software converts it to sales. If of course a return happens outside of the same month and VAT was already reported to HMRC I have to create a credit note in the next quarter.