Been charged VAT on advertising


#1

Thought this looked a bit high. When I drilled down into it I noticed they’d added 20% tax, which I assume is VAT. We do have our VAT details registered with Amazon of course and we’ve never been charged on any previous invoices, so I’m not sure why they’ve started now.

They are not charging it on any other fees.


#2

They notified everyone last month that VAT would start to be charged on advertising.

With effect from October 1 2018 Amazon will issue invoices for Sponsored Ads services from the EU Amazon Advertising entities. This will specifically mean that the EU Amazon Advertising entities will start collecting Value Added Tax (“VAT”) on Sponsored Ads fees charged to advertisers with a VAT registration number in the UK, Germany, France, Italy and Spain. The EU Amazon Advertising entities may also be required to start collecting VAT in other countries where your business is located (e.g. Norway, Iceland, Russia). Please note that this is simply a change to the manner in which VAT is collected rather than the imposition of a new VAT charge.


#3

Thanks - I must have missed that.

Not a biggie, as I’ll just reclaim the VAT charge as input tax - if I can find the invoice that shows it on my account.


#4

Reports > Tax Document Library > Seller Fee Invoices > Product Ads VAT Invoice


#5

That’s where I have been looking.

This charge only appeared on my account last Friday and I can’t see an Ads invoice that covers that period, but the whole lot are in a random order with no way to resort them, so I may be missing it.


#6

You can also see the breakdown via:
Reports > Payments > Date Range Reports > Monthly Transaction Report

Look for ‘Service Fee’ in the ‘type’ column


#7

Same as OP, it seems I did not realise this either until I suddenly asked myself this month that advertising seemed a lot more expensive than it was last year, yet doing nothing different. Just done our VAT return for Oct/Nov/Dec and not included this either!

My point is, we need a proper VAT invoice. Our accountants are not going to accept some transaction summary where the VAT Amazon are taking shows up in a column. If we’re being charged VAT, we need a VAT invoice. It’s accounting 101!!

We certainly get a VAT invoice for our US sales (where we’re charged VAT on seller fees US-side).


#8

You should receive one via email (usually titled ‘Marketing Service Fees VAT Invoice’)

But they’ll also appear (labelled ‘Amazon Marketing Service VAT Invoice’) under: Reports > Tax Document Library > Seller Fee Invoices


#9

Hello,
Can I use the VAT included in the Advertising Invoice as my Input VAT (Box no.4) while filing the VAT? Thank you!