VAT for Amazon Registered Sellers - Who collects this?
I am a VAT registered sell on Amazon
Amazon fee invoices are zero rated
My accounting in Xero using LMB is showing 20% VAT applied on Amazon sales
Do Amazon fees include the VAT or does VAT need to be applied to Amazon sales, I have a feeling there shouldn’t be VAT applied on Amazon sales as I was under the impression Amazon collects the VAT automatically on our behalf
VAT for Amazon Registered Sellers - Who collects this?
I am a VAT registered sell on Amazon
Amazon fee invoices are zero rated
My accounting in Xero using LMB is showing 20% VAT applied on Amazon sales
Do Amazon fees include the VAT or does VAT need to be applied to Amazon sales, I have a feeling there shouldn’t be VAT applied on Amazon sales as I was under the impression Amazon collects the VAT automatically on our behalf
23 replies
Seller_7VbclcPFFRTnc
If you are in uk and are uk vat registered, there is no vat on amazon fees (except for advertising fees)
The amounts instead should go through your accounting software - and on vat return as reverse charge
The 20% its showing is the rate that you’d work out the vat element to account for on your return
Seller_esvgLzKXw2YAl
If you look further at that report, you can see that it’s accounting for the reverse charge further down.
So I think you will find that it’s actually correct.
Seller_NoMNQDGnEW5Bx
But you have been declaring and paying the VAT on your sales since you became vat registered?
