Do booksellers pay VAT in the UK?
Well, I have just had a big surprise. For years I could not figure out why my Amazon fees always exceeded my calculations of them. Today I finally got fed up and asked Amazon what was going on. Turns out I am paying VAT. I only sell books, which are zero rated for VAT, and besides, I am quite poor and always below the individual Tax Threshold, a pensioner in the U.K. So, by all accounts, I should no tax on any of my income, but I have been doing so for years. Does anyone have any advice on how to resolve this, and, hopefully, get a hefty tax rebate ?
0 replies
Seller_Rds42gzScDQFa
Amazon are charging you VAT on their seller fees. You can only claim this back if you are VAT registered. It makes no difference if the merchandise you are selling is VAT zero rated or not.
Are the books you are selling your own IE books you have owned and read or are you buying to sell. If the latter you need to be registered as self employed with HMRC and have a UTR number (Unique Tax Reference) as you should be declaring the income.
Seller_Wqg5EgqxuOwDD
You’re mixing different taxes up here. VAT is a sales tax and although the books you sell are zero rated Amazon are still obliged to charge vat on their fees.If you are VAT registered you can claim this back through your VAT return. If you are a sole trader selling zero rated items it’s usually recommended to be VAT registered as you will receive a refund from the VAT man most quarters.
When you say you should not pay tax on your income that tax would be income tax and is separate from Value Added Tax (VAT). No matter how low your income is if you are buying to sell on with the intention of making a profit you should still be registered for tax even if you make little to no profit or indeed a loss. Obviously of you are just selling off your own books that’s different.
Seller_Rds42gzScDQFa
Amazon are charging you VAT on their seller fees and that is all.
Seller_4DSu64mocJLYm
Why would you register for VAT if you’re only turning over £1200 a year? You’ll need to pay £200 VAT to the government out of the £1200.
EDIT: Sorry just read that you’re VAT exempt.
Seller_LKjg1QRrO36Yq
A few years ago, a (non-VAT registered) seller on the boards queried if he should be paying VAT on Amazon services as it was a business-to-business relation.
After some to and fro with Amaozn, he was awarded a hefty rebate on all the VAT he had paid Amazon going back several years.
Other sellers - all non-VAT registered - after reading this, made similar claims and were also refunded the VAT they’d paid Amazon. Furthermore, VAT was no longer charged on their subsequent Amazon fees.
In some cases I believe it took months or years for the rebates to be paid but it would be interesting to hear from any of the sellers who managed to get one.
I seem to remember others later made similar claims but they were rejected by Amazon.
{I hope I haven’t just opened a big can of worms… 
}.
Seller_zDTKezdC0R9sn
It is worth pointing out, that if you do decide to register for VAT then you will need to submit quarterly VAT returns. These can now only be done using software that is compatible with ‘Making Tax Digital’, so that may involve further investment in time and money
Seller_C4eKagMW1tebh
You need to calculate how much you may get back and then weigh this against how much it will cost to do the VAT returns. This will then tell you if you will actually save any money.
In my case I would get back 250 on 8000 turnover (I sell books) and the accountants fees would be more than that!
