VAT AND REFUND
what happens if I am a VAT registered on amaOn and I dont hit the minimum threshold of 90K in a year. So Do I get my VAT deduction back from amazon ? If yes how is it ?
8 replies
Seller_RlZVPg3d6ZUGP
Surely your accountant told you all this when you registered? and if you're registered the threshold is irrelevant
Seller_QuM1AZgzfU9x4
You really need to read more on VAT - you have a fundamental misunderstanding of what's involved. The last thing you want is to file your returns wrong and get HMRC on your back.
Seller_mS10UjVYuuGor
Your business is either VAT registered or it is not, there's no opting in or out depending on your turnover.
You'll be reclaiming the VAT on your inputs and charging it (collecting it on the governments behalf) on your outputs.
For some businesses, especially new businesses building up stock or those who spend a lot on advertising, being VAT registered even below the turnover threshold can be beneficial. If in doubt talk to your accountant.
Seller_tRuvBEHDedp4q
The 90k threshold on turnover is when you MUST become VAT registered.
If you are below 90k then whether you register or not depends on you and your circumstances (sometimes it can be better for you, other times it may not - speak to an accountant).
I am not sure what you mean about VAT deduction by Amazon. Amazon now charge VAT on their fees to all sellers - if you are VAT registered you can claim this input VAT on your VAT return. If you are not VAT registered then you pay in full. If you mean the VAT Amazon deduct on your international sales then there is no claim back on this. It is the fact you are registered that triggers the deduction not whether you have reached the threshold.
Seller_raHZbxvpfgJs3
what do you mean VAT deduction? You have to pay 20% VAT on every purchase you’ve made and you can claim back VAT on fees.
