FBA shipping for non-prime customers - do we get the extra money?
Hi all,
It’s that time of year when my accountant is doing my head in!
So for my FBA orders it appears when an Amazon customer pays extra in shipping, I’m assuming they’re not a prime member, this is passed on to me.
Is this correct?
5 replies
Seller_BS5lg2keRs2QO
No. They’re paying Amazon for the cost of shipping, not you. Generally you’ll see it being offset.
Seller_tRuvBEHDedp4q
Sorry to jump in. I dont do FBA. I assume the shipping fee changed by Amazon to the buyer is basically treated as another fee they then collect from funds so should be treated as such
But doesnt this still make a difference to seller turnover and VAT seller ends up paying to HMRC?
Example:
Item price is £10
Amazon selling fee is £1.50 (plus 0.30 VAT)
Amazon shipping fee charged to customer is £2.49 (plus 0.50 VAT)
Customer ends up paying £12.99 (£10 + £2.99 shipping)
Amazon charges buyer fees of £1.50 + £2.49 and invoices them £3.99 (no VAT added if seller is VAT registered, they put the fee as Reverse charged)
So I assume seller turnover should be declared as £12.99 (of which they have to forward £2.17 in VAT to HMRC) even though Amazon took care of the shipping?
Seller ends up with £12.99 - £1.50 (selling fee) - £2.49 (shipping fee) - £2.17 (VAT)
