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Reclaiming UK VAT charged on all of my Amazon UK orders
Hello,
My business is UK VAT registered with a UK location. All of our orders on Amazon.co.uk are currently being charged VAT directly from our sales proceeds. The charges line item is called 'MarketplaceFacilitatorVAT-Principal', it's on every order and is 20%. I am needing clarification of if this VAT charge is reclaimable from HMRC on our quarterly VAT filings, or if this is a type of VAT which is not reclaimable.
Thanks for any help.
5 replies
Seller_MT8rt0A2OpbCx
Your profile shows your location as in Missouri. I looked at a map of the U.K. and couldn't find a county of that name. 😉
As you operate from outside the U.K. Amazon are legally obliged to deduct VAT from your sales revenue and pay this to HMRC. That being the case, I would think you would process your sales as zero rated, as the VAT has already been catered for.
e.g. you sell something for £120. Amazon would deduct £20 and pay that to HMRC, so you would enter £100 into your accounts package with zero VAT. However, as we only sell to the U.K. on Amazon and based in the U.K. I may be wrong on this
Seller_kjXDHcJtTU3MN
MarketplaceFacilitatorVAT-Principal is money collected from the buyer (not the seller) by Amazon & directly handed over to the tax authority...it's not reclaimable ...because it wasn't paid by you in the first place (basically a Customer buys, Amazon collect the VAT, you get the post-VAT proceeds...nothing to reclaim for you)
(HMRC could have a field day going through most sellers accounts round these parts!)
Seller_sg54Fq7GfBZzn
Times are a changing.
Now if your a non dom business Amazon collect the VAT and remit it to the tax authorities.
If you are VAT registered, then you can submit the proof to HMRC to claim the VAT back if eligble.
But they will want proof.
So if you sell an item for £100 and the charge is £120, you wont be getting the £20 back after its taken.
You can ask for VAT on sellers fees to be returned quarterly or annually or monthly dependent on your scheme.
You can ask for things that carry VAT to be returned such as buying Paper, Ad spend where VAT is charged.
However, where Amazon take the VAT due from the sale and pay it to HMRC that its gone, because it should be.
Unfortunately too many companies, set up, got a VAT number and then declared Zero or low sales every year, which has led to this.
So the system is flipped, rather than you tell HMRC your sales, Amazon will and then its on you to reclaim what is eligible
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