Ioss and flat rate scheme
How does my 8.5% Flat vat rate work when amazon / ebay are automatically charging 19% German Vat, 23% Irish tax, etc ? Thanks
0 replies
Seller_esvgLzKXw2YAl
Surely that’s really a question for your accountant, or even HMRC?
In any case, you continue to pay your VAT at the flat rate. That’s one of the disadvantages of using the scheme.
Seller_ae51e0CJoHqCX
What you need to remember is that it is not you that pays the VAT, it is the customer. The VAT in this case is collected by the EU so that sorts out the EU collections.
It is a question for your accountant and take this with a pinch of salt as I am registered for VAT in Europe and the UK and not on the flat rate scheme. The logic tells me that you would pay the VAT on all UK sales at your flat rate but wouldn’t be able to reclaim anything back.
You would declare your Euro sales as a net figure and you wouldn’t be liable to pay any additional VAT on this as the customer has paid this through Amazon. The back drop is that you wouldn’t be able to make any reclaims on the stuff you have sold into Euirope so selling a lot into Europe and being on the flat rate may actually make you worse off as in effect you are not able to retrieve VAT on the cost of the goods through the UK.
