How to show Amazon collected VAT on the VAT return?


#1

It is time to submit the UK VAT return. However, from the 1st of January Amazon has been collecting 20% automatically and submitted it to the HMRC. How to show this new system on the VAT return?

As I only sell products on amazon, I would say that VAT due (box1) is 0. But I would like to reclaim my import VAT. However, I fear it might seem suspicious when I start submitting 0 VAT and reclaiming thousands of pounds in import tax.

PS. I am a tiny seller, I cannot afford an accountant. So I cannot ask them.


#2

Amazon haven’t been sending it to hmrc

Where are you based ?


#3

I am a EU company and VAT registered in the UK. Since I am European, UK requires online marketplaces to automatically submit VAT from my sales. As a result I do not get it as a payment so I am not able to send it to HMRC at the end of the quarter.


#4

You will still need to complete a return.
If Amazon have paid it for you, then you will need to show this, but will effectively have a nil return.
Assuming no other sales elsewhere and claims.


#5

That is exactly my question: how do I show it?

Lets say I generated 200£ of VAT and imported the goods with 100£ VAT. (Only accounting for the UK) There are essentially 2 boxes I can use to show this in the VAT return:
(box1) VAT due on sales
(box3) VAT reclaimed

Box1 should be empty as Amazon already paid the VAT. Box2 I can use to reclaim import VAT (-100£) on the goods. In total I would receive 100£. Alternatively I could put box1 as 200£ and box3 as 200£+100£ and get the same result.

I am concerned that since there is no real trace that Amazon has already paid the VAT, HMRC will just see my small company reclaiming VAT without ever submitting anything.


#6

Your best bet is to speak to an accountant about it, or maybe just give HMRC a call?
They can be extremely helpful.


#7

You need to check the full report as some sales are excluded to what amazon collect that vat on so may still have some transactions.

Depending how your operation is set up will determine if you can claim import vat back or not.


#8

According to this HMRC link: https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces

I assume you are selling FBA, so already imported the goods.

Goods that are in the UK at the point of sale

Importing goods to sell through online marketplaces

The overseas seller will remain liable for any import VAT and Customs Duty when the goods are first imported into the UK.

When the goods are sold to the customer, the overseas seller will be considered to have made a zero-rated supply of the goods to the online marketplace. The overseas supplier does not have to issue invoices to the online marketplace for supplies that are considered to be zero-rated.

The last section for me means that we should still report the Sales value (the revenue), but the VAT should be much lower than usual, because you are considered to have zero-rated supply. You can easily see all that information from the VAT Transaction Report in Amazon - Reports


#9

Hey guys. so anyone can confirm or not that in Box 1, the value should be 0?


#10

Where are you based?


#11

EU (Romania). As for my understanding, as Amazon pays the due VAT to HMRC, the value in Box 1 would be 0 as at the moment of filling the return, i owe no VAT. (i only sell on amazon.co.uk). Right?


#12

OP What country are you based in?


#13

Romania. I have a UK VAT code though and all sales and acquisitions go through it.


#14

I think that 0 VAT should be filled. But it gives me an error: The amount in Box 4 matches the amount in Box 3. Please check.

Total VAT due (the sum of boxes 1 and 2) (Box 3):

GBP0.00

VAT reclaimed in the period on purchases and other inputs (including acquisitions in Northern Ireland from EU member states ) (Box 4)

GBP0.00


#15

Hi Radial-Space-Wares,

Did you find a solution?

Could you please explain how you submitted your return as I am exactly in the same situation?

Thanks in advance for your help.

Have a great day.


#16

Hello guys,

same non-UK seller here with FBA account.
Just going through this issue here too :frowning:

How did you manage it? What was the correct procedure?

We also plan to import goods into UK but via postponed accounting VAT scheme basically we can postpone to pay import VAT.
But if Amazon already pays sales VAT on our behalf…I have no idea how to do it then???

Thank you for any any advice!
Matt


#17

Hello,

Have you found the way to solve this issue? I have faced the same problem and not sure where to get any documents stating that amazon collected 20% from my sale value.


#18

Hello. I am not from the UK and Amazon UK has been collecting VAT on my behalf as well. How am I going to declare this to HMRC?