Jersey price/vat issue.
Hello everyone,
I have recently received an order and noticed some discrepancies in the pricing. The list of orders shows that the item was sold at a price of £24.98, but when I opened the order it showed the item total as £21.86. Additionally, the Jersey VAT is showing at £1.04 and the sales proceed net of VAT is £20.82.
Could someone please confirm why the item total is £3.12 less than my usual selling price? For clarity, I want to mention that the postage and packaging is free, and I am a UK seller who is not registered for VAT.
Thank you very much in advance.
Best regards,
Lee V.
5 replies
Seller_rGtEcZnu0JTRD
Sales to Jersey are not subject to UK VAT, hence Amazon remove this from your sales price, therefore the correct amount for this is 20.82 which is the amount that you charge before tax.
Obviously you need to account for this correctly in your VAT return so that you do not pay sales tax to HMRC on the sale.
Seller_ZQyopdiwkUHOZ
Amazon don't know how to calculate properly for sellers who aren't VAT registered.
It's fine when you're selling into your home location, but anytime you sell to a location with different VAT rules, it just assumes everything needs the VAT taking from the price without considering the VAT status of the seller.
Seller_SrFxL4X95IpRI
Many thanks for your help, i tried to reach out to amazon but without success, i have now cancelled the order and taken a small hit on my metrics.
Seller_7VQiMhCLfHHus
Had the same issue before.
We're VAT registered.
If we sell zero-rated items (books/food) etc which is priced at £12, amazon will sell it in Jersey for £10. As margins often super slim like 5% we lose money on every sale due to this.
It's clearly a bug that assumes all products have 20% vat, even if the tax code used (a_food_gen/a_books_gen) is 0%.
I've made a case with seller support but after months it's still not answered other than the occasional we're still working on this email.
