General VAT - Flat Rate Scheme
Hi,
I’m VAT registred on Flat Rate Scheme, UK LTD trading in UK.
I’m charged General VAT 20% on sales I make, which I believe it’s wrong. I have to pay VAT directly to HMRC 6.5% but with Amazon charging me also, I’ll end up paying 26.5%.
Can anyone advise? Am I wrong? Why am I charged 20% from Amazon?
I added my VAT number to amazon
Seller_7VbclcPFFRTnc
No not at all
As a UK seller, selling in uk , you are responsible for collecting, reporting and remitting VAT
No, if you do not need to be vat registered, and your goods are standard rated, there is no advantage in my opinion
0 replies
Seller_7VbclcPFFRTnc
You shouldn’t be charged vat on seller fees once you add your vat number - these are reverse charged
You are only charged on PPC fees as this is billed from uk
Are your sales just to uk buyers ?
You will be collecting 20% vat on sales though which is correct
Have you spoken with an accountant ?
Is there any reason why as a new seller you have registered for VAT ?
Seller_7VbclcPFFRTnc
Edit
Your vat number is registered on amazon but not your ltd company
You need to check you are correctly registered on amazon as a ltd company
Seller_esvgLzKXw2YAl
I think that your misunderstanding how flat rate works.
Basically, aside from Amazon fees, which are reverse charge, you will still be paying VAT at 20% on your purchases
You charge your customers 20% on each sale.
But you pay a vat rate of 6.5% to HMRC on all of your sales. You cannot claim back purchase vat.
