Hope you are all well. Just a quick question.
Im currently doing Amazon FBA from London. Whenever I get orders from Ireland/Northern Ireland, the customers are charged a different price and as a result my fees are different in comparison to someone ordering from England for example.
I understand that this has something to do with tax/VAT, I’m not 100% sure. But every order I get from these areas, my profit is so small.
Is there any way around this? Might be a silly question
Many thanks in advance
You are correct, it’s to do with VAT.
There is no difference to the money you receive for sales to Northern Ireland.
With the Republic of Ireland Eire), things are different and also, they are different if you are not vat registered.
For a start, you are making sales because you have FBA Export enabled. So, buyers in Eire get charged at the Irish VAT rate which is 23%.
If you are not vat registered, Amazon wrongly deduct the equivalent of UK VAT from your UK selling price then add the Irish VAT. So, for you, it’s as if your selling price was 5/6 of the UK selling price. Amazon is plain wrong but there is nothing you can do to make them charge the item correctly.
If you are VAT registered (I guess you are not or you wouldn’t be asking the question), then there is no difference. You need to account for the sale as an IOSS sale for which you will not have to pay VAT back to the taxman.
It’s a no-brainer. If you are not vat-registered, switch off FBA Export in your FBA settings to stop Eire sales (look for “Shipping programmes and export settings” and also “Allow Amazon to buy my products to sell globally”)
As @AmazonUKForumRefugee says. I believe this is all due to the Marketplace Tax Facilitator - but I could be wrong.
Thank you so much, makes sense