Vat reg in uk
Hi,
It is my first VAT return this year in the UK as i have recently become VAT registered.
Now, do i claim VAT back on fees? alongside all the products i have sold?
I am honestly so confused and i feel like my accountants also have new clue as i am their first amazon seller customer.
Any help would be highly appreciated.
0 replies
Seller_NoMNQDGnEW5Bx
Have you given Amazon your VAT number? There shouldnt be any VAT on fees (except advertising) if you have.
Do your accountants know about reverse charging?
Seller_esvgLzKXw2YAl
Quite honestly, that’s very concerning. The one person that you should be able to turn to in regard to VAT issues, is your accountant. They are the ones that should be telling you what to do.
Are you UK based?
Are you purchasing your stock in the UK or elsewhere?
Do you have UK premises?
Seller_7VbclcPFFRTnc
Get a new accountant
Even if they are unfamiliar with amazon, they should understand the simple procedure of reverse charge figures
And just checking as a new seller, based in uk , have you actually reached the vat threshold ?
Seller_2IqU6eYHmCUaV
I personally use the Sage Accounts system and have done for the last 30 years,. though there are many other Accounts systems such as Xero and Quick Books available which process your VAT returns onto the MTD system .
But what worries me here ,is that your Accountant should be fully organised with the online submission
of your quarterly VAT return on "Making Tax Digital " online platform .
You may find this link useful https://www.gov.uk/charge-reclaim-record-vat
Seller_pq6yWI7aqoV2Q
This is advice your accountant needs to know. If they do not know this, you need another accountant.
Seller_ae51e0CJoHqCX
Just because you are their first Amazon customer does not mean that they won’t understand how VAT works. If you are using a UK based accountant then this should be walk in the park. If you are planning on selling all over Europe and have more than one VAT number then you will most certainly need an EU Accountant such as Avask or Avalara.
The spirit of VAT is quite a simple concept and you will need to do a date range report every quarter to see what your transactions have been and a UK transaction report.
Have you signed up to VAT services on Amazon? I am not sure how it works for the UK as I do my own in the UK and only use Amazon VAT services for Europe.
VAT is quite a simple concept assuming you are selling vatable goods, you pay a percentage of your sales to VAT and then you can reduce this amount by using VAT that you have already paid through purchases. Amazon don’t normally charge VAT on fees ie it is usually zero percent therefore you have nothing to deduct. You need to look into your tax document library to see what bills you have that contain VAT. I for instance have shipping invoices and advertising invoices whereby I have been charged VAT so these can be legimately deducted from my Vat liability
The easiest way to calculate and submit all of this is to use something like quickbooks or xero and connect this to HMRC.
Once you havee done one return, it is fairly simple and if you do transactions outside of Amazon then quickbooks or xero will handle this.
I have been doing this for many years but I still have my accountant to check annually on this as well as ensuring all of my other liabilities are being done.
Seller_ae51e0CJoHqCX
Could you please confirm if you are resident in the UK and working from home? If so and you have reached a good leveel of business, please go back to your Accountant and get them to help you set up an Accounts package which they will have access to. If they are not able to do this, then find another Accountant. Even someone like Tax assist will be good for stuff like this I think although I personally don’t use them.
Seller_Hg3zznbQySqDE
You can claim back VAT on any invoice you have been given for any purchase of goods or services which has charged you VAT. To begin with , my accountant had lots of experience with VAT and none with online business. If you have an accountant with no VAT experience and no online experience, it is time to move to another accountant with VAT experience. You should supply Amazon with your VAT number and they simply don’t charge you VAT. I only sell in UK to UK customers so can’t help with non-UK VAT. I do, however, use Xero accounting software which make the process of VAT returns simple.
