Reclaim VAT on fullfiment & referral fees

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Seller_Ho876pPx0Ncwb

Reclaim VAT on fullfiment & referral fees

Hello,

Hope you are well.

I am reaching out because I’m looking for a small consultancy on how to reclaim Amazon VAT on referral fees & FBA fees. I have already read several articles about this but I’m still not clear about that matter.

Please find my case below as well as my questions:

  • I am selling food related products in France, the applicable VAT rate is 5.5%.
  • My product is sold at €18.9 including VAT (€17.9 + €0.99)
  • My FBA fee to ship the product to the client is about €3.5 (VAT exclusive)
  • My referral fee for selling it on Amazon is 15%, therefore €2.8 (VAT exclusive)

When pulling my VAT report, I can confirm I cannot see any VAT applied to my FBA or referral fees.

Note that my business is VAT registered, my VAT number is properly linked to my seller central account & validated by Amazon.

Please find below my questions:

  • Question 1: I’m not sure to understand why VAT is not charged on my referral & FBA fees, why is that?. From what I understand, it seems to be related to the fact that I have declared my VAT number in seller central and also the fact that Amazon is running VAT via Luxembourg.
  • Question 2: Does that mean that my actual FBA cost would have been €3.5 +€0.6 (20% VAT), same for my referral fees at €2.8 + €0.5 (20% VAT). If so, who took care of paying such VAT if it was not charged directly to me?
  • Question 3: As I did not pay anything, I assume that I should not be considered about any VAT reclaim on those expenses, is that correct?

Thanks a lot for the help

Best

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Seller_qZO3ZCjoBXEeL

Your invoices will state they are raised in Luxembourg. Under EU VAT law, they are billed as ‘reverse charge’ so you self account for them. VAT is not charged at source.

See above, no VAT has been charged on the fees as they are reverse charge.

Correct but you do need to account for it.

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