How to calculate turnover for VAT registration
Hi
is here somebody with experience (ideal with an approval from the accountant) how to calculate the turnover for checking, whether I am over or under the “distance selling” threshold £70,000 for VAT registration in UK?
Questionable for me is:
a) whether the Amazon fees are calculated to this turnover, or the turnover is just what I get to my account (it is a big difference, because if the fees are included, than the real threshold is just around £ 57.000);
b) transactions with customers from Ireland (or other countries) buying through Amazon.co.uk - logically these are non-UK customers outside the treshold, but in reality is hard to separate these customers from the statistics and there is a risk that the UK authority will just calculate all sales through amazon.co.uk into this threshold.
Thanks a lot for every help
0 replies
Seller_tRuvBEHDedp4q
Simply put - Turnover is total of all sales, postage charged and any other service you have charged for (gift wrapping etc). This includes international sales.
Profit is the difference between Turnover and costs of running your business (fees, stock, postage etc)
You have to register for VAT when Turnover (not profit) reaches £70,000 in any 12 month period (NOT Jan-Dec, Apr-Mar tax year or business accounting year) so if you have 7 months where Turnover is £10,000 each and every month then you have to register for VAT
Seller_z6B2L9xab6HlP
If it’s the distance selling threshold (£70k) it’s anything within the UK’s VAT area which includes Northern Ireland (BT postcodes) and the Isle of Man (IM postcodes) and most BFPOs (BF postcodes) where they are within the EU VAT area. It would exclude:
- The Republic of Ireland since that’s a different country
- Guernsey (GU postcodes)
- Jersey (JE postcodes)
Seller_kHIYvQFgzwVAy
If you are selling Standard VAT items and Zero Rate VAT Items, then you have to add the total amount you have made before amazon fees. Your total selling price including your shipping.
I believe if you are selling VAT Exempt products you do not add them to your turnover.
An example of standard rate vat items = adult t-shirt, and zero rate = child t-shirt.
Yeah what neil said is right 
