What determins turnover - VAT Threshold query
Where in seller central can I find my “turnover” to know whether I reached £85000 turnover for the year in UK sales to be obliged to apply for VAT or not? Can someone please point me to a report/page that shows my turnover - I am confused whether turnover is after amazon deducts all its charges or before the deduction.
Seller_7VbclcPFFRTnc
@z4ydiUK -
2 accountants have now said to get yourself an accountant and register for VAT asap as you went over the threshold several months ago
I can see this thread getting pulled soon so please take all the (correct) advice
hope that helps !
280 replies
Seller_7VbclcPFFRTnc
Go to reports - business reports and change the dates to Feb 16th 2020 to today (15th feb) and click apply - this is because vat is calculated on a rolling 12 month period.
Don’t forget this is just uk sales you need to do the same on eu sites as well as any other platforms you sell on ie eBay or website as VAT threshold is based on ALL sales wherever they are
Turnover is everything you took BEFORE any deductions ie the full price inc postage you sold an item for
Seller_7VbclcPFFRTnc
OP
You had another post asking why you couldn’t be exempt for vat calculation services - by those reports amazon can see you should be registered for vat. I see the dates are Sept to sept - are they higher for Feb 2020 to Feb 2021 ?
Seller_NoMNQDGnEW5Bx
And it includes everything you sell anywhere - Facebook, Ebay, Etsy, Amazon, your website, your shop etc
Seller_7VbclcPFFRTnc
Do you have an accountant? I’d get one ASAP as your report showed almost 6 months ago as being over so you need to get it sorted asap
Seller_EOmLRMFX8Oo9x
Me thinks there could be a huge fine from HMRC is heading somebodies way 
Seller_EOmLRMFX8Oo9x
Me thinks we could all be wrong and me thinks DG could be right but me thinks me thinking too much and at this point I shall leave DG to explain his thoughts to the VAT man or woman who comes knocking on the door hopefully carrying a straight jacket
Seller_DTufFoxJuMU0M
Please someone tell me this is a wind up… it has to be.
Seller_DTufFoxJuMU0M
So explain this.
I sell an item in my brick and mortar shop for £10
Customer a comes in and pays cash - I put £10 into my till
Customer b comes in and pays by card, on my card terminal I pay they 5% to process the transaction for me. They deposit £9.50 into my account.
You do realise that my turnover for that is £20, not £19.50 right?
So whats the different with Amazon, they are providing a service that YOU pay for, not the customer.
Seller_tRuvBEHDedp4q
Im always reminded when I see these posts and people start saying Turnover does not include expenses (like fees, delivery charge, etc) of the saying ‘Turnover is vanity, profit is sanity’
There are many companies with massive turnover - but actually very little profit
If you use DG analogy of taking away expenses like Amazon fees and delivery charge before working out turnover - then surely you could also take away all expenses such as other costs like the original cost of the stock, packaging material, printer ink, broadband etc etc
Turnover includes eveything - all sales, all postage no matter where it is sold to. If you were trading in a physical shop it is the amount rung into the till - not what was rung into the till minus the cost of paying an employee to work the till - which is basically what DG is saying when they remove Amazon fee from the calculation.
DG is confusing Turnover with Profit which is the difference between turnover and all expenses - fees, delivery charge, original cost of stock, packaging material, etc etc
Take this example (I am ignoring VAT and other ancilary costs):
I buy Widget from a supplier for £50 and sell it on Amazon for £120 for which Amazon charge me £20 fees and I pay the courier £5 to deliver
Turnover for Supplier is £50
Turnover for me is £120 - but I have expenses of £20 Amazon fee, £5 courier, £50 original cost, so my profit is £45
Turnover for Amazon is also £120 - but they can put the £100 they pay me back down as an expense so they make £20 profit
Turnover for courier is £5
Seller_7VbclcPFFRTnc
@z4ydiUK -
2 accountants have now said to get yourself an accountant and register for VAT asap as you went over the threshold several months ago
I can see this thread getting pulled soon so please take all the (correct) advice
hope that helps !
