Amazon Now Charging VAT on Fees
I have just noticed amazon is charging VAT on top of my item selling fee. is this a new charge as i am sure they was not charging this last time i checked.
This significantly reduces profit margins on my items.
12 replies
Seller_QuM1AZgzfU9x4
They changed the way billing works from 1st August. There's more info in the news section of Seller Central.
As a VAT -registered seller rather than putting them through as reverse charge as you used to, you now get to claim them back.
Seller_ZVAz3d5lZuGid
Yes, new, started 1st August, you must have missed the email about it. All fees now have VAT.
Seller_30wrcrU7WPCiY
so what does this mean for us being vat registered but only on flat rate. Amazon are taking 20% VAT and we also have to pay 7.5% flat rate on all gross income so we are paying 27% VAT?
@Seller_ZVAz3d5lZuGid@Seller_QuM1AZgzfU9x4
Seller_CNXMnZmfYYY3b
I have to say this is one of the first Amazon announcements I've been happy about. It's a lot more fair for VAT registered businesses.
