Value Added Tax (VAT) Information for UK Marketplace
My question about to seek clarification regarding the Value Added Tax (VAT) threshold applicable in the United Kingdom.
As per my understanding, the current VAT registration threshold in the UK is £85,000. However, I would like to confirm whether this threshold is applicable to the total product sales, or if it excludes Amazon FBA fees and Amazon referral fees. Clarity on this matter is crucial for proper compliance and accurate reporting.
The specific information I am seeking pertains to whether the £85,000 threshold refers to:
- Total Product Sales: This would include the gross sales amount generated from the products I sell on the Amazon UK Marketplace before any deductions.
OR
- Excluding Amazon FBA Fees and Amazon Referral Fees: This means the cumulative total of product sales after deducting Amazon FBA fees and Amazon referral fees from the gross sales amount.
Value Added Tax (VAT) Information for UK Marketplace
My question about to seek clarification regarding the Value Added Tax (VAT) threshold applicable in the United Kingdom.
As per my understanding, the current VAT registration threshold in the UK is £85,000. However, I would like to confirm whether this threshold is applicable to the total product sales, or if it excludes Amazon FBA fees and Amazon referral fees. Clarity on this matter is crucial for proper compliance and accurate reporting.
The specific information I am seeking pertains to whether the £85,000 threshold refers to:
- Total Product Sales: This would include the gross sales amount generated from the products I sell on the Amazon UK Marketplace before any deductions.
OR
- Excluding Amazon FBA Fees and Amazon Referral Fees: This means the cumulative total of product sales after deducting Amazon FBA fees and Amazon referral fees from the gross sales amount.
5 respuestas
Seller_7VbclcPFFRTnc
Where do you live and where do you store stock?
The threshold is £85k of turnover - that is all sales on all sites and channels including postage etc and before any fees are taken off
However , the threshold is only for uk residents
If you do not live in UK, but store stock here, you are a NETP and therefore the threshold does not apply
If you are in uk have you ‘exempted’ yourself from paying VAT on seller fees? As that has a different calculation again
Speak with an accountant who knows your circumstances for full advice
Seller_qZO3ZCjoBXEeL
If you are a UK based seller (meaning you, not just your company are resident in the UK) then the VAT threshold is calculated on a rolling 12 month period It includes your gross turnover from all sales (including exports). In this case £85k is the threshold. If you and/or your business are not UK resident then no threshold applies. If you store stock in the UK you must be VAT registered.
If you have also registered yourself as VAT exempt with Amazon in order to utilise VAT reverse charge on the Amazon invoices for seller and FBA fees (if applicable) then you must add the total value of your Amazon invoices (that are reverse charge) to this turnover figure.
For example: You make gross total sales, including shipping, gift wrapping etc.) of £75,000 in the past 12 months, then you are below the threshold.
If you are declared ‘VAT exempt’ on Amazon and your Seller Fees and FBA invoices are show with £0 VAT then you must add the past 12 months of total invoice value to your turnover figure above. So if your invoices totalled £15,000 for the past 12 months, you have now crossed the VAT registration threshold by £5,000 and must register for VAT.
As always, please get professional advice from your accountant.
