Commingling VAT charges


#1

Can anyone clarify what these Commingling VAT charges are?

We use Commingling Inventory and have recently activated PAN EU

The charges seem to cancel each other out, receive once credit and debit but there are two that have stood out.

  1. UK Marketplace credit of 1.67 - same transaction debit of 2.04 in Italy

  2. (Zero Rated in UK product/VAT rated in Italy) UK Marketplace credit of 0 - same transaction debit of 4.63

I have attached screenshots

Hope the above makes sense, if anyone could shed some light on what these charges are. As far as I am concerned commingled inventory means an inventory swap, there would be financial transaction involved and who are we paying VAT to?


Wichtige Neuigkeiten zum Programm für vermischten Lagerbestand
Inventory Transfer Invoice
Inventory Transfer Invoice
#2

Do you get any more information if you go into the transaction itself?


#3

Nope, no more information

Completely at a loss, the charges are being paid direct to Amazon under the ‘Other Transactions’ Column.

To charge VAT this implies I need to purchase something. I own the stock, what would I be purchasing. And why is there a charge and a debit for each transaction.

Real head scratcher


#4

Hi Adam4

Announced 3 days ago

https://sellercentral.amazon.com/forums/t/finances-service-returns-comminglingvat-value-in-europe/469528

Summary

Why have Commingling transactions been reported in my Amazon VAT Transactions Report?

If you participate in the FBA Commingling programme, items in your inventory may be swapped with identical items owned by Amazon Retail or other FBA Sellers who have also elected to participate in the programme.

When an order is fulfilled with a commingled item, two (additional) VAT transactions must be reported:

“Commingling_Sell”: Payable VAT related to the disposal of a product to another FBA seller (or Amazon Retail), participating in the Commingling Programme.

“Commingling_Buy”: Input VAT related to the acquisition of a product from another FBA seller (or Amazon Retail), participating in the Commingling Programme.

When preparing your VAT reporting, these transactions should be treated the same as any of your other sale (for COMMINGLING_SELL) and purchase (for COMMINGLING_BUY) transactions. However they have been separately labelled as COMMINGLING_SELL and COMMINGLING_BUY in the TRANSACTION_TYPE field so that you are able to track the movement of your goods into and out of the commingling inventory pool.

You are also still required to report the transaction with your customer. These will continue to be reported in the Amazon VAT Transactions Report as normal.

More information about the FBA commingling programme can be found here


#5

Thank you very much

So to clarify any VAT credits into my account need to be passed onto the tax man and any VAT charges I can claim back

So the overall net will be zero from these commingled transactions?


#6

That’s how I am understanding it, as they cancel each other out but best corroborate what Amazon have confirmed about the change with your accountant.


#7

Thank you very much, appreciated


#8

Hello,
the question arose with these transactions, since in fact our accountant says that they are, as it were, interchangeable.
But with what documents we can confirm this?

Thanks for any help.


#9

The paperwork you can find in Tax document library. but interesting thing on the paperwork commingling VAT cancel each other but the VAT on Sales is much higher, which is on the other report - transaction report. So Would be great if somebody could clarify what VAT is commingling and what VAT is on Sales

Thank you Margarita


closed #10

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