Hello,
Sorry if this covers ground already discussed but I want to triple check the impact of changes in VAT on fees.
In my case, we are a UK business selling in the UK and in the EU. We are registered for VAT in the UK, DE, FR & IT. My worry is that we would need to reclaim VAT charged on seller fees for each country.
My understanding from the recent news about VAT being added and deducted from seller fees is, however, that Amazon will soon be billing us for seller fees from a UK establishment (not Luxembourg) and therefore standard rate VAT will be included in these fees and deducted by Amazon.
Further, that seller fees for my Company's Amazon sales in Europe will soon be billed from the UK too (not individual countries in Europe) and will also have VAT deducted. IE that all VAT (aside from VAT on the actual products we sell) on fees will be billed in the UK and deducted in the UK (and therefore reclaimable in the UK.
This to me, and the like of me, the impact will be one of a hit on cashflow rather than material loss of cash, as it were.
Am I correct in this please? Any answers would be most welcome,
Thanks
Gordon