VAT not Refunded on Reimbursements!
Hello everyone, Since the Amazon Seller Support is spamming same email over an over I will need help from real people, because that support is like some kind of robot.
The issue already mention in the title is that no VAT is refunded on the reimbursements, which lately have been a lot.
Just to add that the reimbursements are from Lost Items from Shipments.
Can someone or a real Seller Support Member explain where those 20% VAT are going and how I can get them, since they are not refunded to us.
I am VAT registered for over a year.
Thank you in advance!
Seller_qZO3ZCjoBXEeL
It isn’t a sale, it is a reimbursement.
I believe you record the transaction now as an insurance payout - exempt from VAT. There is no VAT for you to pay on the transaction so you net the same as if you had sold the item. Raise a credit note for the item and record the income as a reimbursement from Amazon.
The ‘missing’ VAT bit doesn’t exist.
Customer was refunded
You’ve been paid the net proceeds equivalent to the sale
Amazon are out of pocket on the transaction.
7 replies
Seller_mQBL8kTilHxAw
Here is one breakdown from support for one of the refunded products:
Unit Value with Tax: 4.88 GBP
Unit Tax: 0.81 GBP
Unit Value: 4.07 GBP
Unit Fees: 1.26 GBP
Net Amount (Value - Fees): 2.81 GBP
Clearly the Unit Tax: 0.81 GBP - Is not refunded. Since the received amount is 2.81 GBP.
Seller_7VbclcPFFRTnc
It’s the fees they are deducting
Therefore you are still receiving the same amount as if they sold them
Are you based in uk ?
Seller_mQBL8kTilHxAw
Yes I am UK based.
So the Unit Value with Tax: 4.88 GBP this is my selling price with VAT so called Tax.
Then in the breakdown it is Unit Tax: 0.81 GBP - This is the VAT.
And the amount I received after the Fees (Unit Fees: 1.26 GBP) is 2.81 GBP. But this amount exclude the VAT. My question is why ? And where that VAT goes, how can I claim it ? Since if that was a sale I get the VAT and in that scenario I will get it if it was a sale, but in reimbursement I do not.
Seller_7VbclcPFFRTnc
Presumably because it’s not a sale, it’s a fee transaction from amazon who are not based in uk
Seller_qZO3ZCjoBXEeL
It isn’t a sale, it is a reimbursement.
I believe you record the transaction now as an insurance payout - exempt from VAT. There is no VAT for you to pay on the transaction so you net the same as if you had sold the item. Raise a credit note for the item and record the income as a reimbursement from Amazon.
The ‘missing’ VAT bit doesn’t exist.
Customer was refunded
You’ve been paid the net proceeds equivalent to the sale
Amazon are out of pocket on the transaction.
Seller_7VbclcPFFRTnc
And that’s a much better explanation than mine !
