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VAT and Invoice Defect Rate
Hello,
I recently received an email from Amazon stating my Invoice Defect Rate is exceeding 5%.
I'm required to send an invoice for a few Amazon business customers however i'm not VAT registered, from some research I believe can send a receipt without the VAT info, is this correct? Will my rate drop back to 0%?
Hypothetically if i was to earn more than 90k a year in turnover I would have to be VAT registered, so a 20% loss of each sale. I sell low ticket items and currently aim for around 30% profit margins. With the VAT rate the business isn't really viable unless I increases my prices by 20% making the products more expensive than the competitive rate. I'm not really savvy with accounting so I do apologise, am I missing something here?
Can anyone recommend an online service or bookkeeping that specialises in tax returns, vat and all the bells and whistles that incorporate Amazon into there system that would be tremendously beneficial?
Thank you
2 replies
Seller_ZVAz3d5lZuGid
If you are not VAT registered you can declare your VAT exempt status and Amazon will automatically send invoice/receipts for sales to business customers. They will not do it retrospectivly though so you need to create an invoice for any previous business customer sales.
Seller_QuM1AZgzfU9x4
One thing you're missing is that you get to offset the VAT you pay on purchases and services. For example the VAT you pay on Amazon's fees and the items you buy to sell.
There are lots of services that can take your info from Amazon and do your books. Quickbooks i've used in the past with LinkMyBooks to take the info from Amazon. I would though recommend learning what's what so you can understand what any software is trying to do.
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