Hi UK sellers,
I’m new to bundling in the UK and just got my first order today.
I’m a bit confused about VAT — I already paid VAT when buying stock from my distributor, but I’ve heard that I also need to collect VAT from my Amazon buyers. Is that true?
Also, I didn’t notice anything about VAT collection on my first Amazon order.
Would really appreciate some guidance here.
Where is your business established for VAT purposes?
The sale price has VAT included. I would advise you to work with an accountant in the UK and if you need one, I can recommend you someone.
Not strictly true. Only if the seller is VAT-registered or a NETP/market facilitator order.
All non-UK sellers are using the Marketplace Tax Facilitator. If you are based in the UK, then I would recommend you to discuss this with an accountant. I believe that as a VAT registered seller, you would need to collect the VAT.
Yes, in the UK you pay VAT when purchasing from your distributor if they’re VAT registered, but as a VAT registered seller you also need to charge VAT on the final sale to the customer and then reclaim the input VAT you already paid, so you’re only remitting the difference to HMRC.
Amazon automatically adds VAT to your sale price if you’ve set your account up as VAT registered and entered your VAT number, and they show this in your transaction reports rather than on the order page itself. If you haven’t registered your VAT details in Seller Central, Amazon won’t be calculating it properly, so make sure you’ve added that in your tax settings and then double-check your reports for the VAT breakdown.
In practice you’ll reclaim the VAT you paid on stock and remit the VAT you collected on sales, with the net amount going to HMRC in your return.
