Vat on rm postage
im sure it’s nothing, im an rm business customer and my labels through buy shipping are charged to my RM account rather than paying amazon for them,
however i just noticed that amazon highlight the vat on my postage (screenshot) and say its cost me 0.65p. i’ve checked through the transaction view and balance changes and can’t find that im being billed by amazon for this amount (im definitely being billed by RM for the vat as well as the postage)
I am vat registered and don’t pay vat on amazon fees.
Is there a reason this is showing up like this does anybody know?
just want to make sure i’m not being double billed for the vat somehow!
3 replies
Seller_ILTNDCj7DXuua
Tracked, CTL and some of the other Royal Mail services are subject to VAT, the only ones that are exempt are BPL and stamps I believe.
If you are VAT registered you would claim these back on your quarterly VAT return, if you mean you declared yourself as VAT exempt with Amazon this is just to stop them charging you VAT on their selling fees as they are based in the EU.
Either way, being VAT exempt with Amazon or VAT registered in the UK, you still pay the VAT on everything its whether you can claim it back
Seller_tRuvBEHDedp4q
I agree that is very confusing. I don’t know why Amazon are reporting a VAT element at that stage.
However, I think the reason is that it is a tracked label. These are not charged by RM until used. Even when you buy such labels via Click & Drop and manifest they are never in the total price charged you see. These fees are invoiced later when the label is used.
If I buy a standard Parcel 48 service (code CRL) then the cost breakdown by Amazon is correct. If I buy a Tracked label, then there is no cost shown by Amazon but there is a VAT amount.
As you are invoiced directly by RM for these labels I see no reason why Amazon are showing any VAT at all when the cost is reported as 0 (until label is used).
However, if the label cost breakdown is just for your benefit (which I believe it is as when I buy a Parcel48 label I get full cost breakdown but still not actually charged by Amazon) then it makes no difference anyway.
