Should I include 20% VAT when using FBA ROI Calculator?
Hello everyone,
Sorry if I am being incredibly dumb, but I just launched a UK Amazon FBA business. I have purchased a number of products in local stores to re-sell on Amazon. When using the FBA ROI Calculator it shows my net profits WITH 20% VAT already applied to it. Do I HAVE to pay VAT on all of my products sold? Or shall I change the "ESTIMATED VAT BOX" box to 0%?
I’m just trying to accurately calculate my profits.
Brand new seller, Permanent UK resident. Not VAT registered.
Thanks everyone <3
3 replies
Seller_DTufFoxJuMU0M
If you are not vat registered then you won’t pay vat, so you can change that box to 0%
Be sure to have registered with HMRC and opened the correct business account on Amazon (not to be mistaken for the professional plan)
Also you mentioned buying items from local stores - do you mean retail stores? As RA can be a bit of a gamble on Amazon
Seller_DROodOAYHftnc
Not the best business model for Amazon, as they may not accept your receipts when asking for your source of supply chain.
Some people do get away with it for a while, but eventually RA can catch up with you.
