Amazon includes VAT in prices of over 150 GBP
Hi there
I have a product priced at 159 GBP.
When I sell it, they calculate it as if it is a 'below 150gbp' product. So they have included the VAT inside. My sale email looks like this:
Price: £133.1
Tax: £26.63
Shipping: £0.00
Amazon fees: -£19.56
Marketplace Facilitator Tax: -£26.63
Your earnings: £113.61
---
I'm a bit puzzled, as I thought if I put a price of over 150GBP the VAT wouldn't apply to that listing.
Can someone enlighten me?
Thanks
Daniel
Amazon includes VAT in prices of over 150 GBP
Hi there
I have a product priced at 159 GBP.
When I sell it, they calculate it as if it is a 'below 150gbp' product. So they have included the VAT inside. My sale email looks like this:
Price: £133.1
Tax: £26.63
Shipping: £0.00
Amazon fees: -£19.56
Marketplace Facilitator Tax: -£26.63
Your earnings: £113.61
---
I'm a bit puzzled, as I thought if I put a price of over 150GBP the VAT wouldn't apply to that listing.
Can someone enlighten me?
Thanks
Daniel
2 replies
Seller_hOZNPw7G8FIjl
If you are VAT registered, VAT applies to all items. Not sure why you think items over £150 are VAT exempt??
Seller_3FCTdZQDsLenM
This is because of Brexit, so welcome to the world of learning new things and doubling the bureaucracy and extra work for businesses.
When the UK left the EU, the law on VAT changed. If you sell an item valued at more than £150 to a person outside the UK, the VAT is collected by the incoming country instead of the marketplace.
If the item is under the value of 150, it will be collected by the online marketplace, but you are still liable to account for this VAT in both instances.
The current comment on the thread doesn't even give you any advice on this issue.
I'm based in Ireland, and like the UK, we joined the EU in 1973 to eliminate all this nonsense.
I'm now hoping that, unlike the UK, we don't make the same mistake as you just because we're fed a load of lies and told we're better off in this situation because, of course, it's really the immigrants who caused all these problems, right?
The above information is accurate; the reason it is more difficult to do business is because of Brexit, plain and simple.