Vat input on goods imported from China
Hi all,
I hope any of you guys can help me understand this matter: my accountant just said that good imported from our supplier in China, being delivered DDP, and not showing any VAT on the Commercial Invoice, are not entitled to be considered as input VAT in the VAT account.
Long story short, we have to transition or as LTD or stay sole proprietor but open a VAT account because of getting next to the £85K threshold but, going through our options with the accountant, the pictures was quite unencouraging right because of the VAT that we will have to pay on the RRP charged to the customers on Amazon but not able to counterbalance by the VAT that we could potentially claim back from our main supplier.
That is, a Chinese company that stock goods in Germany, therefore delivering to us in UK DDP but providing commercial invoices not showing any VAT and with full address/web/telephone Chinese.
Any thoughts or advise on VAT and if what our accountant is saying is correct?
15 replies
Seller_7VbclcPFFRTnc
If you’re nearing the £85k you don’t have any choice whether or not to register
Also, if there’s no vat on an invoice you cannot reclaim anything
Seller_64jziShTiTjOq
For a start, you need to get proper invoices from your supplier. Commercial ones will not be accepted by Amazon when they ask you to prove the authenticity (ie proper supply chain) for your products
Seller_7VbclcPFFRTnc
As your supplies and amazon fees aren’t vatable, ask your accountant about going on the flat rate scheme
Seller_7VbclcPFFRTnc
And in terms of your question about the price of your items for sale, when most people register for vat, they add the cost onto their items
