I’ve been hearing a lot about how the UK marketplace has really improved for VAT-registered sellers. I stopped selling there two years ago, and since then, I’ve noticed many other sellers also pulling out of the UK and shifting their focus to the USA marketplace.
What are your thoughts? Is the UK market in a better place now?
The field has levelled a little now that non-reg sellers have to pay vat on fees but I don’t personally see that as a major thing.
With the VAT on fees, you can claim this back, however, expect it to take between 6-12 weeks per reclaim (every 3 months), and expect HMRC to be a pain in the ass.
I am on monthly VAT returns, so I do it every month. Did you have any issues with HMRC when trying to claim the VAT on fees?
Strange thing to say. If you are vat-registered, you just submit a return, monthly or quarterly. Then you either pay what you owe or claim what you are owed. Simples!
Unless you are selling zero-rated goods, it is unlikely that you will ever be owed VAT, You will always pay unless your sales dry out.
There are VAT fees getting charged in the EU as well. So I don’t think that the UK is a lot worse.
But the US platform is much better, as they have no VAT.