About VAT for FBA product
I have to pay big amount for VAT in UK.
Does anyone have an idea to decrease the VAT?
I am a seller from Thailand and my product is handmade product in Thailand which is very cheap and if I have to pay expensive VAT I will get lost.
Kindly advise.
Dusita
0 replies
Seller_qZO3ZCjoBXEeL
Hi Dusita,
Your customers have to pay the VAT, although it is charged along the supply chain.
Because you are using FBA it seems, you must be registered for VAT.
If you have had to pay VAT to import your goods into the UK then you can reclaim that VAT as part of your VAT return.
You have to charge 20% VAT to customers when they buy your goods from Amazon and this is passed to HMRC.
Again, any UK expenses that you incur where VAT is charged, you can recover in your accounting.
Seller_yCSMCxcUT9Dpr
I live in Thailand but have a UK limited company, UK Registered address etc. If you have this type of company then you will not have to register for VAT unless you go over the threshold - currently around £85000 per annum. I am a UK citizen but I think a UK company can have overseas directors and you are allowed to 100% own a UK company even if you live abroad. There are many company formation companies who will do this for you and not too expensively.
You would need to calculate the cost of setting up and running a UK company against the VAT you will pay so really depends on how much you sell/intend to sell. Don’t forget you would need to factor in your annual accounts and reporting to Companies House etc. I do all this myself but it may be a bit daunting for someone not used to it.
Seller_yCSMCxcUT9Dpr
As I said, I do my own but I appreciate not many will be able to navigate UK Tax
