Countries
Read onlyI am selling my collection of books (some new, some used). Because I am not VAT registered, Amazon is charging VAT of 20% on each of my sales (and on their fees!). Having spoken to HMRC, they say that because I am not a business nor would I be selling items that would incur VAT charges, I cannot be VAT registered. Can anyone explain if there is anything I can do about this?
Books are zero rated for VAT in UK but shipping may have VAT applied if you are not using Royal Mail. I wonder how Amazon is charging VAT on your sales? Is it applied to the shipping and fees or are they actually charging it on the books themselves?
Books are zero-rated for VAT, so there is no VAT included in, or deducted from, the price the buyer is charged.
Amazon will charge you fees and commission on each sale. Because you are not VAT-registered, these Amazon charges are subject to VAT. That is the only VAT you are paying on your sales.
You should be very careful about listing any of your book collection as New. Your books are, by definition, pre-owned.
Paul
"Can anyone explain if there is anything I can do about this? "
The only thing you can do, is register for VAT.
Relax! Every day you buy poducts including VAT, without complaining, what is the difference now? The money goes to the NHS…
What makes you think you are being charged VAT on the books?
Amazon billing is really complex. There are product charges (books should not attract VAT), seller fees percentage (plus VAT), fixed closing fees if not Pro-merchant (plus VAT), monthly sellers fee if pro-merchant (plus VAT) and Delivery Charge less postage credit (plus VAT) (or maybe Delivery Charge plus VAT less postage credit. I’m not sure).
VAT will always be shown on your statements, but unless you have intricately worked it out, I would not assume it is being charged on the books themselves.