Submit VAT Return
Hi, please can you simply guide me to do my VAT return?
I am new to Amazon and have gone through the Seller University, but I am still confused about where to get info from submit my VAT return.
I am based in the UK and VAT registered just in UK and ship products from China to EU, US, and Canada.
Please can you advise what info I need to pass to my accountant and how and where to extract required reports. Assuming it will be VAT on cost of goods plus VAT on Sales though seems like some TAX is taken at source by a particular Marketplace.
I started trading on Amazon mid-November 2021 and VAT return is due on 7th February. Assuming my VAT quarter will be from 1st November 2021 to 31st January 2022.
I have viewed Seller University Seller University (amazon.co.uk) for VAT tutorial but the screens do not match as video is 2 years old!!
Here are some examples of sold products:
Example 1 (UK)
Price: £4.12
Tax: £0.82
Shipping: £0.00
Amazon fees: -£0.76
Your earnings: £4.18
Example 2 (Canada)
Price: CDN $11.26
Shipping: CDN $0.00
Amazon fees: (CDN $2.03)
Your earnings: CDN $9.23
Example 3 (USA)
Price: $30.21
Tax: $3.47
Shipping: $0.00
Amazon fees: -$6.17
Marketplace Facilitator Tax: -$3.47
Your earnings: $24.04
Example 4 (Germany)
Price: EUR 1.78
VAT: EUR 0.34
Shipping costs: EUR 0.00
Amazon Fees: (EUR 0.32)
Tax for mediation via online marketplaces: (EUR 0.34)
Your earnings: EUR 1.46
0 replies
Seller_saK5Ah2SaNYjL
Get a good accountant. They will always save you more than they cost.
Seller_7VbclcPFFRTnc
For your accountant you will need vat invoices from the tax document library and reports - payments - date range reports
Obviously this is just for amazon sales
Seller_77IcbQKVGdZo0
I use the date range reports in Payments to work out how much tax has been charged on sales
You will also need your seller fees invoices for each month to pass to your accountant
I don’t sell on international marketplaces but I wouldn’t have thought you would include these in a UK tax return you would include them in the tax return for that country (assuming you need to be VAT registered in that country).
You will obviously need to include any sales off Amazon and any purchases you have made.
Seller_7VbclcPFFRTnc
And no - usually if your vat return is due on 7th Feb, its for October, November and December however, if its your first return it maybe different dates altogether - your accountant should be telling you - not the other way round
Seller_saK5Ah2SaNYjL
Anyone that needs others to fill in that many boxes for them, needs a freaking accountant!
Seller_NoMNQDGnEW5Bx
My vat quarter is up to the end December for the February payment.
If its your first one you need to go through a lot with your accountant and not rush it as you can claim back stock services and other things so you need to make sure it’s right
Seller_7VbclcPFFRTnc
Just to check, if you live in UK and are dropshipping with no feedback and only started selling 2 months ago, why register for VAT ?
Seller_NoMNQDGnEW5Bx
Download your monthly summary reports and tax reports
Seller_7VbclcPFFRTnc
And just as a side note looking at your storefront, you are listing on a lot of branded asins which maybe problematic as a dropshipper with no invoices
certain items are being dropshipped from china for less than £2 total price ?!
Seller_zRxGmTYygCKIT
Sounds like you need to deregister for VAT.
VAT is a minefield and you need an accountant to sort all this out, or at least a proper system for doing your accounts (e.g. sage etc).
An accountant will save you more money than what they cost. In addition if theres a cock up, it’s them which HMRC has to deal with - not you.
