Hello,

I'm recently needing to become VAT registered on Amazon FBA, I'm happy that our business is growing but this is a milestone we all potentially go through and I'm naturally nervous about it

I'd like to check my thinking/calculations with some of the more experienced members - I hope this okay, I intend to keep my prices the same to remain competitive

I believe I can just use net figures to simplify the calculation now that I'll be VAT registered, with the important bit being that I am starting with the Net Sales Price, as the VAT on the sales price is passed on to the government

So, assuming that I am now VAT registered in the UK, my new profit calculation would be (assuming I'm not advertising, not including storage or sending to amazon etc):

• Profit = Net Sales price - Net Referral Fee - Net Fulfilment Fee - Net Cost of Good

Translated to include consideration of VAT

• Profit = (Gross sales price (incl VAT) - Sales VAT) - Gross Referral Fee (incl VAT) - Gross Fulfilment Fee (incl VAT) - Gross Cost of Good (incl VAT) + Referral VAT + Fulfilment VAT + Cost of Good VAT

These equations are basically the same and give the same answer, note that I am reclaiming the input vat from the Referral, Fulfilment and Cost of Good

An example

• Gross Sale Price = 2.99
• Sale Price VAT = 0.5
• Net Sale Price = 2.5

• Net Cost of Good = 0.38
• Net Referral Fee = 0.46
• Net Fulfilment Fee = 1.52

Profit = 2.5 - 0.38 - 0.46 - 1.52 = 0.14

Could you please review and tell me if this is correct? is using net figures the sensible technique to use?

Additionally, as a new VAT registered seller, what would you recommend to do for a pain free transition and VAT registration experience :)

Many thanks for your help!

Hello dear fellow sellers I need to ask which Vat digital software would you recommend to manage vat?

Since Amazon's VAT services are ending in October 2024, J&P Accounting has invoiced me EUR 691.20 for services including 12 months of VAT filing for Germany, Italy, and France, as well as the French fiscal representation fee and the Italian fiscal representation fee. Is this a reasonable amount?