Flat rate VAT and amazon sells
Good morning,
I am register for the flat rate scheme (7.5%) and sells on Ecommerce market Platforms (Amazon and ebay) the marketplaces transferring the VAT to HMRC automatically from every sell, but at a rate of 20%.
Is there a way to get back the 12.5%? my accountant said no, but I wanted to double check…
2 replies
Seller_7VbclcPFFRTnc
The whole point of the flat rate scheme is that you don’t claim back (most) vat you have paid out
In order to claim back vat you need to be on the standard vat scheme
Flat rate isn’t always the most cost effective
Seller_qZO3ZCjoBXEeL
I take it you are an overseas seller and that Amazon and eBay are collecting VAT on the sales?
I cannot speak to eBay but Amazon do not have any process to handle VAT calculations for anything other than normal VAT accounting. If Amazon are doing the VAT accounting then Flat Rate or Margin scheme are unlikely to be the correct choice.
Flat rate is a scheme really intended for small UK based businesses who do not export.
I’d suggest you consult with your accountant and discuss the pros/cons of changing your VAT scheme. If you go to normal VAT accounting you will be able to recover import VAT paid when you ship your goods to the UK (when properly imported and documented) along with VAT on any other fees you may incur so you might be better off.
