Does Amazon pay VAT to Gov on my behalf?
Hi guys
I am just trying to understand how VAT works on Amazon UK, any help is very much apreciated.
Obviously I need to pay the Government 20% VAT on whatever my sales value is…
BUT…
Does Amazon take 20% of my sale and transfer to the Government on my behalf… and then transfers to me what is left…
or do I need to pay the 20% to the Government myself? and Amazon does not take this amount alongside their own fees.
?
Seller_7VbclcPFFRTnc
You sell item on amazon for £10
Amazon take away selling fees (% dependent on category) lets say 15.3% - no vat cause you are vat registered - £1.53 - this is NOT vat to the government - this is amazon commission
They transfer what is left - £8.47
You pay government vat on your turnover minus vat on any costs incurred ie product itself, postage etc
63 replies
Seller_EOmLRMFX8Oo9x
No Amazon takes the VAT from your Fees
Yes you are responsible for filing and paying your own VAT
Seller_EOmLRMFX8Oo9x
Are you above the 85k turnover threshold?
Seller_gOzZ4ehojzaW0
I was afraid that I was paying VAT twice… in such a way that…
For example sell an item on Amazon for £10 total.
Amazon automatically send Government 20% so £2
then Amazon transfers me what is left (£8) minus Amazon fees(-£1)
So I get £7
Then I pay 20% VAT of £7 which is £1.40 to Government.
But now I understand this is not the case… right?
Seller_7VbclcPFFRTnc
You sell item on amazon for £10
Amazon take away selling fees (% dependent on category) lets say 15.3% - no vat cause you are vat registered - £1.53 - this is NOT vat to the government - this is amazon commission
They transfer what is left - £8.47
You pay government vat on your turnover minus vat on any costs incurred ie product itself, postage etc
Seller_gOzZ4ehojzaW0
Thank you very much that makes perfect sense and you explained it very well.
I did previous understand it how you have explained, but I was afraid I got it wrong. But everything seems to be okay
Seller_7VbclcPFFRTnc
So used to these vat questions now, ops home country is the first thing I ask 
Seller_gOzZ4ehojzaW0
Sorry I made a mistake in when I first typed this out… what I was afraid was happening is that I was paying VAT twice by mistake…
in that…
For example sell an item on Amazon for £10 total.
Amazon automatically sends Government 20% of 10 so £2
then Amazon transfers me what is left (£8) minus Amazon fees(-£1)
So I get £7
Then I pay 20% VAT of £10 which is £2 to Government also.
But now I understand this is not the case… thankfully!
I do understand correctly now right?
Seller_gOzZ4ehojzaW0
@Tomahawk_Sports and @The_Little_Shop
Thank you very much for this information, seems I have been paying to much VAT for about 5 years then
Seller_3u63TG7fpfnG6
if you pay a flat rate it’s not 20% works for people who sell low-cost items
you need an accountant
Seller_m9RhzR125MeSt
Here is How it works.
Lets say You bought an item for 4.80. Which was £4.00 plus 0.80 VAT. You Sell that item on Amazon for lets say £14.00. Now Amazon charges you fees of that sale suppose £3 and you get £11 from Amazon.
If you are VAT registered then you can claim back that £0.80 VAT which you paid while you purchased the item for the purpose of selling. Then you can claim back £0.60 from Amazon which is the VAT you paid to Amazon in that £3 Amazon selling fee. As you made profit of 11.00 - 4.80 = £5.20. You will pay the Government 16.66 % of the profit you made so the VAT will be £0.87. As you already claimed back £0.80 from the Government for the VAT you paid on Purchase and You have got £0.60 back from Amazon as well, so you will be better off in this situation if you are VAT registered. I hope this make sense.
Seller_uSleh6nhjpyx5
if you are FBA then Amazon is collecting VAT
Marketplace Facilitator Order: Amazon is collecting VAT on this transaction.
This is a marketplace facilitator order and hence tax is being collected and remitted to the tax authorities by Amazon. Your net proceeds will not include VAT for Marketplace Facilitator order. Please visit
