VAT On Fees - New Seller
Hello,
I am sure this has been discussed many times before but I cannot seem to get a clear answer.
I am new to selling, selling under the VAT threshold obviously so had not registered. However, I am currently paying VAT on my amazon fees (Which i had not accounted for is my margins).
Is the only way to stop paying to become VAT registered and is this worth me doing?
Thanks
0 replies
Seller_ejwc84JNL5Uk6
Those who are Vat registered and can supply a verified Vat number to Amazon, means they are no longer charged Vat on fees - the amounts however have to be accounted for by a reverse charge mechanism (both in and out).
Those not Vat registered have to pay the Vat element, so Yes you would need to become registered to avoid this but bear in mind you also have to pay 20% Vat element on your sales to HMRC. so your prices would have to increase to account for this, plus all the extra accounting to HMRC that goes with it.
Only you and your accountant can decide if you are better to be Vat registered. It benefits book sellers for example.
Seller_7VbclcPFFRTnc
You have yo pay vat on the fees just like you pay vat on your gas and electricity bills etc and you need to account for it in your costings - just like the tax you will have to pay on profits
Seller_DROodOAYHftnc
As a new seller it is highly unlikely that it would be financially sensible, at the moment, to become VAT registered.
As said, all non-VAT registered sellers pay VAT on their fees just like you do with other services you pay for.
