Confusing VAT statements. Does FBA pay VAT on our behalf or not? UK to UK sales
I’m a UK based VAT registered business only selling to UK. My sales are subject to 20% VAT. I’m just prepping my VAT returns and my statements make no sense.
I sell a £19.99 item to a UK customer. Total product charges = £19.99 VAT = £0 Then 3 days later same product going to another UK customer Total product charges = £16.66 VAT = £3.33.
What is going on here? So the first transaction needs to be recorded as £19.99 with 20% VAT included which I’d pay to HMRC but did Amazon collect VAT on the second transation for some reason? So it’s recorded as £16.66 zero rated?
I also noticed that I’m no longer chraged VAT on fees like I did previously. I’ve been VAT registered for years and FBA have had my VAT number from the start so nothing has changed on my end.
Thank you!
16 replies
Seller_7VbclcPFFRTnc
Was the 0 vat one going to channel islands or EU ?
If so, yes it goes through as a zero rated sale
Silly question but if its been years, why have you only just noticed ?
How have you been accounting for that vat previously ?
Seller_7VbclcPFFRTnc
I was going to say you can do it in bulk for all listings in settings - account info - vat calculation services but the link has disappeared from my dashboard
Anyone else’s disappeared ?
@Demel @Sequin
Seller_NoMNQDGnEW5Bx
Settings, tax settings, vat calculation
@The_Little_Shop mine looks like yours with that legal entity bit
Seller_t1XD8o1NBh77o
I think I figured this out. When selling to business customers Amazon buys the products from me and sells them to the business customer. Then invoices us. So all my £19.99 transactions are going B2C and £16.66 transactions are going to VAT registered businesses with Amazon acting as a reseller in a sense. So the price is tax exclusive.
