FBA fee issue
Seller_BS5lg2keRs2QO
No. Amazon wouldn’t collect the VAT on domestic sales - it’d be your job to report your VAT figures to HMRC each quarter. They would though stop charging VAT on the fees and you would account for them as “reverse charge” - essentially accounting for them as both an income and an expense so they are neutral.
19 replies
Seller_NoMNQDGnEW5Bx
Did you check the fees before you listed? Are the measurements right on the listing? Are they all UK - UK sales? Are these all the same items?
Seller_BS5lg2keRs2QO
The actual fees including VAT for your item is the £4.42. The £2.96 is because the referral fee isn’t being charged, I don’t know exactly why, but other sellers have mentioned a promotion for new sellers that has something like no referral fees for certain days at the start of a month.
Seller_wq4ihSXydH3Rf
UK. If your business turnover is less than £85K VAT is not compulsory. You can register for VAT voluntarily.
Seller_wq4ihSXydH3Rf
Yes Exemption from Vat Registration Is what I have done.
Seller_BS5lg2keRs2QO
That’s just asking Amazon to issue invoices / receipts on your behalf for the orders you take. It doesn’t have anything to do with not paying VAT, though i’d agree the terminology is confusing.
Telling Amazon you don’t think you should pay VAT is a more convoluted process and requires you to send them various documents.
Seller_wq4ihSXydH3Rf
Oh okay thanks for helping me understand that. So is it not illegal for a non registered vat business to charge VAT? Or is Amazon classed as the business making the sale so they still charge VAT on the sale of my item?
If the latter is the case, then surely it’s more financially beneficial to become VAT registered pre threshold?
Seller_BS5lg2keRs2QO
Amazon are charging VAT on the fees for the services they provide to you, not VAT on an item’s sale price.
Seller_wq4ihSXydH3Rf
Okay. So when you’re vat registered do they include VAT on sale price and services?
Seller_BS5lg2keRs2QO
No. Amazon wouldn’t collect the VAT on domestic sales - it’d be your job to report your VAT figures to HMRC each quarter. They would though stop charging VAT on the fees and you would account for them as “reverse charge” - essentially accounting for them as both an income and an expense so they are neutral.
