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Marketplace facilitator VAT
Hello,
When customers from Ireland order, we are being deducted 23% VAT "Net Proceeds will not include VAT for Marketplace Facilitator order".
I understand Amazon is acting as the middle-man here, and basically purchasing our product then selling it on.
However the way they do it doesnt make sense and wipes out all our profits. As we are not VAT registered, VAT hasnt been costed into our prices, yet Amazon deducts the VAT from us.
For example, a £25 product would give us £5 profit. However for Marketplace facilitator orders, they are withholding near-enough £5 VAT which gives us £0 profit.
Surely, as the buyer is responsible for paying VAT, which is then collected by Amazon as the facilitator, the VAT should NOT be deducted from us, but should be added on top of the price that we are selling it for. E.g. Amazon should be buying it off us for £25, then selling it on to the Irish customer PLUS VAT.
Is there a way of changing the settings so that VAT is added on top of the price rather than deducting it from the current selling price? Thanks.
Our business is based in the UK but not VAT registered. We are VAT exempt on Amazon.
0 replies
Seller_76AUwmqvSyRIM
Sadly, Amazon do not handle sales to Ireland correctly for non-Vat registered sellers. You will always lose out.
The only way is to stop sales to Ireland.
Seller_wefVC2UhkJ6DJ
Great question! I have sales turned off for Ireland and yet some things have sold there meaning I have made a loss due to the VAT. Any idea what went wrong?
Many thanks!
Seller_76AUwmqvSyRIM
You mustn't have "turned off" Ireland correctly. Check your shipping templates if FBM and your FBA Export settings if FBA.
If done correctly, you won't get any sales to Ireland.
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