VAT APPLICABLE ON GROSS SALE OR NET SALE?
Dear Sellers
Does anyone know that flat rate VAT is applicable on Gross sale or Net sale?
Example
Selling price (Gross ) Sale £13.99
Fba and seller fee £5.09
Vat charged by amazon £1.02 Total =£6.11
Net sale sale received in the bank £7.88
So If I decide to register vat on flat rate , Will I have to pay vat on £13.99 or £7.88?
Looking forward for any help.
Thank you
9 replies
Seller_76AUwmqvSyRIM
VAT is always payable on the gross sale value, including p&p, whichever scheme you choose.
Seller_uc0xZm2BVUBaz
It is always applicable on the Gross sale so £13.99 in this case. You will have to account for and pay the difference from what you received and what the item sold for when submitting your VAT return.
Seller_DfMOm9tgJKAex
vat is charged on the total amount the customer is charged, goods and postage
Roberto_Amazon
@Seller_h44DwAVaFVB1W Hello there! Just wanted to follow on your post as I see a lot of members have stepped in and provided you guidance on this topic.
Thank you specially to @Seller_fMsCVAHNu4txH for the simplified example.
