VAT Exclusive Setting
Hello,
I am a seller located in Canada who registered for VAT. After putting my VAT number in I see that the VAT is included in my price. How do I make the setting so the the VAT will be charged on the price. Help would be greatly appreciated.
Thank you.
15 replies
Seller_0Amk0hnQkPWMH
You cannot. Amazon clearly state that the price shown must include VAT (where VAT is charged).
Search in seller help for “Important information for international sellers” where you will see …
Make sure that your product sales price includes all taxes (including any VAT).
Seller_qZO3ZCjoBXEeL
In the UK it is required by default to display prices including VAT when selling to the public. Therefore any prices you set and are shown are VAT inclusive. If you are VAT registered then the price you set for your product must include the VAT that you then have to pay to HMRC.
Note when you calculate your margins, Amazon fees are deducted on the total transaction value as is VAT.
If your selling price is £100 including VAT, then you pay Amazon 15% or £15. You still need to pay HMRC 20% VAT on the £100 sale price - £16.67 not on the £85 after Amazon’s fees. This means VAT registered sellers actually pay an effective 18% fee to Amazon, not 15%.
