Hi. Just want to check things are as they should be with my amazon listing fees/taxes. I am a sole trader not VAT registered so son’t charge, or pay the VAT man on my sales and am listed as such as a seller. Here is what my last sale to Jersey states:
Fees, well it sucks but it is what it is. But I dont remember seeing this facilitator tax before and from what I’ve read it is amazon collecting and paying tax on my behalf, so just checking this is correct and as it should be really! How if at all would this affect my tax return? I obviously declare every sale and assume HMRC take a percentage of each sale as taxable income. Just checking i’m not paying it twice therefore!
I’ve noticed a few of these sales to Jersey recently that I haven’t received before and they account for a very low percentage of total sales so not a biggie really, but curious all the same. Do I need to highlight these sales in my tax return somehow?
If you are not VAT registered, there is little you can do other than stopping sales to those locations if you can. Amazon have made a pig’s dinner of sales to those locations and your revenue will be less than what it should be. This new regulation only started a few months back, maybe a year or so.
They still make mistakes even if you were vat registered but at least you can deal with those.
Thanks. Looking again, it looks like amz are charging extra vat onto the sale price then deducting it again so I don’t think it’s costing me anything. could be wrong though. Worst case though, 20% deduction from something is better than no sale at all (there’s sufficient margin in the product).
Thank you for your inquiry regarding the Marketplace Facilitator Tax and selling to Jersey, Channel Islands. As of my last update, the Marketplace Facilitator Tax generally applies to sales made on online marketplaces, where the marketplace operator is responsible for collecting and remitting sales tax on behalf of third-party sellers.
However, the specific tax regulations and requirements may vary depending on the jurisdiction and the terms of the marketplace. Therefore, it’s essential to review the tax laws and guidelines applicable to sales made to Jersey, Channel Islands, as well as any agreements or policies set forth by the online marketplace you are using.
Given the complexity of tax regulations and international sales, we recommend consulting with a tax professional or legal advisor who specializes in e-commerce and international taxation. They can provide personalized guidance and ensure compliance with all relevant tax laws and obligations.
If you have any further questions or need assistance, please feel free to reach out. We’re here to help.
Marketplace Tax Facilitator basically constitutes Amazon’s tool to comply with their obligation to emit taxes directly to authorities for specific territories and countries for which taxes apply, that are not the responsibility of the seller.