VAT on Amazon
We are in the process of registering for VAT.
Currently we are not VAT registered and we pay tax on referral fees and FBA fees.
Am I right in thinking that once we are VAT recognised by Amazon, we will not have to pay these?
Thank you 
Seller_7VbclcPFFRTnc
Once you’ve uploaded your vat number , amazon stop charging vat on seller fees - referral and fba - but not PPC
You take these amounts - total and vat and enter them in set boxes on the return - they effectively cancel each other out
But you don’t pay them in the first place so therefore nothing to claim back
7 replies
Seller_7VbclcPFFRTnc
That’s correct
But you account for them on your returns as reverse charge
Seller_9idPMYuN5lTTl
Thanks for confirming.
Does that mean we do pay that money to HMRC or not?
Do you mean we just have to declare it on our VAT returns, but we get it back?
Seller_7VbclcPFFRTnc
No , it’s just a figure you enter
I strongly advise using an accountant to do your returns
Vat is something you need to get right
Seller_9idPMYuN5lTTl
We are using an accountant, but they’re away this week and we are charging VAT as of this month and so it’s something I thought I’d try and confirm via the forums.
So just to confirm, we don’t have to pay VAT on referral fees and FBA fees to HMRC? Is that correct?
But we need to record these figures nonetheless?
Thank you
Seller_7VbclcPFFRTnc
Once you’ve uploaded your vat number , amazon stop charging vat on seller fees - referral and fba - but not PPC
You take these amounts - total and vat and enter them in set boxes on the return - they effectively cancel each other out
But you don’t pay them in the first place so therefore nothing to claim back
Seller_9idPMYuN5lTTl
Thank you @The_Little_Shop
Much appreciated!
Seller_W0AmSpe8RjZgA
hello, my amazon account is deducted, although I have data exemption, VAT in UK e-commerce should not be subject to this wattage deduction, it should be exempt from 85,000 pounds.
