Tried searching but couldn’t find the answer online / HMRC or Amazon.
Our Company is non-UK domiciled but UK VAT registered. Therefore, we are required to file VAT returns (quarterly) using MTD-approved software by HMRC.
Problem: Amazon has been deducting VAT prior to settling payments to us. For example, if I have product sales (net) of £10, VAT £2, other selling fees £6, Amazon withheld VAT of £2 and paid HMRC on our behalf. Amazon then only remitted £4 to us (£10 net of VAT less £6 selling fees).
When we filed our VAT return, we had no option to provide what has already been paid by Amazon. We are required to put Output VAT due in Box 5 and then pay HMRC the output VAT. In this example, we then had to pay £2 again to HMRC.
Has anyone experienced the same and how do you resolve paying VAT twice?