FBA fee issue


Hi all I’m new to this. I’ve been charged over 50% in FBA fees on most of my sales so far. (New listing 12 days old) Now for the past 3 days im being charged about 30%. Why is there a difference?


Did you check the fees before you listed? Are the measurements right on the listing? Are they all UK - UK sales? Are these all the same items?


When I looked at fees before listing it was about £3.
Measurements correct.
All uk-uk sales.
All same item.

This is my first and only listing, is it normal to be charged different amounts?


The actual fees including VAT for your item is the £4.42. The £2.96 is because the referral fee isn’t being charged, I don’t know exactly why, but other sellers have mentioned a promotion for new sellers that has something like no referral fees for certain days at the start of a month.


Oh okay thanks. However I’m not VAT registered yet. Nowhere near the threshold. Also notified amazon of exemption when creating my account. I wish the fees were itemised.


Where are you based and what reason do you have for vat ‘exemption’ ?


UK. If your business turnover is less than £85K VAT is not compulsory. You can register for VAT voluntarily.


That doesn’t make you VAT exempt though
It just means you aren’t vat registered

Have you actually declared vat exemption with amazon ?
If so, do you know what figures you are now using to calculate your vat threshold for registration as they differ now from the norm and will reach the threshold for registration much quicker

Have you gone through it with your accountant


Yeah but on Amazon the only option is to declare VAT exemption. Which I have. No not aware of new threshold. But I can guarantee I’m nowhere near. However I will look into new or changing regulations.


Do you mean you actually told amazon that you are vat exempt so that you no pay vat on your fees ?

Or have you just registered for amazon to send your business customers invoices ?


They are not asking you to declare VAT Exemption, they are asking you to declare exemption from VAT registration. Two very different things.


Exemption from Vat Registration


Yes Exemption from Vat Registration Is what I have done.


That’s just asking Amazon to issue invoices / receipts on your behalf for the orders you take. It doesn’t have anything to do with not paying VAT, though i’d agree the terminology is confusing.

Telling Amazon you don’t think you should pay VAT is a more convoluted process and requires you to send them various documents.


Oh okay thanks for helping me understand that. So is it not illegal for a non registered vat business to charge VAT? Or is Amazon classed as the business making the sale so they still charge VAT on the sale of my item?

If the latter is the case, then surely it’s more financially beneficial to become VAT registered pre threshold?


Amazon are charging VAT on the fees for the services they provide to you, not VAT on an item’s sale price.


Okay. So when you’re vat registered do they include VAT on sale price and services?


No. Amazon wouldn’t collect the VAT on domestic sales - it’d be your job to report your VAT figures to HMRC each quarter. They would though stop charging VAT on the fees and you would account for them as “reverse charge” - essentially accounting for them as both an income and an expense so they are neutral.


Thanks very helpful