Some interesting VAT questions
Like many of you, my Amazon business is based and registered in the UK but we also sell across the EU on our own as FBM.
- Does the VAT threshold of £85k apply only on our UK sales or does it include all EU sales together?
- Do refunded orders still count as sales towards the £85k allowance?
- Has anyone got any experience splitting up their business into two in order to avoid breaching the £85k allowance?
Thanks,
Jonathan
0 replies
Seller_esvgLzKXw2YAl
The VAT threshold is the TOTAL of ALL sales, regardless of destination, on a rolling 12 month basis.
Refunded orders are removed from the total, allowing for any differences in the refund/charges etc.
As to your third question, that sounds very like trying to swindle the VAT man.
At the very least, you would need two ltd companies and the cost involved in doing that, would more than likely outweigh the differences.
If you two separate sole traders, then they would need to be ENTIRELY separate, so really not a way of doing it either.
VAT is not that big a deal at the end of the day, you really shouldn’t let it scare you.
There are various schemes available to simplify things as well.
