New VAT rule for Uk Amazon sellers
Hey so it looks like Amazon are now charging VAT on all their fees such as referral fees, FBA fees, storage etc. etc. Me being a limited company and currently non VAT registered basically it is adding a good chunk of extra costs making me slightly unprofitable/ break even at the best. I wanted to ask does this also apply to UK sole traders/ individual traders that do not run under a public limited company? I have not been able to find any information regarding this currently.
thanks in advance
6 replies
Seller_d8YGbIjNqwFxn
Yes it applies to Sole Traders as well as Limited Companies.
If you are no longer making a profit you will have to either raise your prices or consider going VAT registered so you can reclaim the VAT.
Going VAT registered though may mean you need to increase your prices anyway to take account of the extra 20% VAT that you charge on the sale price.
Full details of the change are here
https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90?ref=nslp_at_0_GKTQQ8AVHDSR9AD5_jtd_fe8e800e-d95c-42ae-a98b-e6e682547f90&rel=%22noopener%20noreferrer%22
Seller_76AUwmqvSyRIM
The change to the invoicing process was announced quite some time ago and you should have prepared by getting ready to increase your prices on August 1st. Although I appreciate that it is a big chunk of additional costs to you, it's no different to purchasing other goods and services from UK sellers.
It affects all sellers established in the UK but as you know, if you are VAT-registered, you can claim the vat back.
Seller_QuM1AZgzfU9x4
I'm guessing you had applied for an exemption at some point? Otherwise Amazon has always charged VAT on fees to non-VAT registered sellers.
Seller_3CbKyZDwVWePi
Thanks for all the responses. I have one final question would it also apply to me if I sell as a private individual? I imagine it would but confirmation would be great.
