Do Amazon automatically add VAT to ASIN's on the date you go VAT registered with them?
Need some guidance please folks. We are having to go VAT registered and have chosen 1st April 2024 as a 'go live' date. My accountant has said Amazon automatically increase prices on all ASIN's on that date by 20%. Is this correct?
19 replies
Seller_k2X0L9mVRT0pW
No its not correct - Your selling price (including postage) will include VAT that you will have to remit to HMRC. Amazon do not add anythingthing onto the selling price or remit to HMRC.
You are in UK and talking about UK Vat?
Seller_DfMOm9tgJKAex
firstly you have to add your VAT number under tax settings, it's not automatic
second, once done your prices stay the same, but the value includes VAT
Seller_Cnyf8w7QEi8Fs
Amazon mean if you don't upload VAT number by 1 April then it will pay the VAT on your behalf and deduct it automatically from the sales. You can send a screenshot of the email and maybe we can help!
Seller_KlbXZHzQGSDZv
If this is the advice from your accountant i would respectivly suggest you change accountants.
You will need to decide how much you need to increase your prices by. Your gonna have to pay 20%Vat but at the same time you will be now claiming the 20% back that your supplier charged you.
pre vat = price + vat+profit + postage(if yor posting free) + amazon fees
post vat= Price + profit + postage + Amazon feees + Vat
Best to get a spreadsheet going and if you have 1000's of items a big pot of coffee
Seller_wA3Q6hSOKG6WF
Just a thought but have you checked you're not eligible for a flat rate VAT? It may be an option worth looking at as you'd be paying a lot less VAT depending on what you sell and your turnover.
Seller_NGsJvIbE3Hwsi
Bottom line is this. Any product you sell once registered, whatever price that product sells for, for example, £12, divide that figure by 6 (for this example =£2) then that is the amount you will be paying in vat. That’s with standard rate vat. You need to take that into account with your pricing.
Sakura_Amazon_
Hello @Seller_enNAEK3kB55mh,
I see you have some responses from other Sellers sharing their experiences.
I am attaching some VAT resources that might be helpful for other sellers :
Did you try to contact the Seller Support Team regarding this doubts?
Sellers, thank you for your participation here!
Regards,
Sakura
