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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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There, I wonder if you can help me. I sell my products

Resolved Question:

Hello There,
I wonder if you can help me.
I sell my products on Amazon and am about to register for VAT. Amazon take a seller fee for each of my sales. At the end of each month I get a seller fee report that gives a daily report on the seller fees that I have paid. The report includes a VAT number and breaks down all of the VAT that I have paid on the seller fees.
So here is my question:
Amazon Services Europe are based out of Luxembourg and they have a Luxembourge supplier VAT number.
Am I able to claim this VAT back?
Kindest regards
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.

You are charged VAT as you aren't yet VAT registered yourself. Right now, the VAT is just another expense which you claim a deduction for against your business income.

When you are registered for VAT and you tell Amazon your VAT registration number, you will find that they will no longer charge you VAT. This is because you, ie your business and Amazon are in EU or EEA countries as listed here.

There is some useful information from the Amazon seller forum on VAT here. You can read about claiming back VAT on goods bought before you registered here.

I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.

Wow....this is great thank you so much.

My plan is to back date my VAT registration 15 months. The reason for this is that 90% of my sales are 0 rated.

So the will I be able to claim the VAT back that I have paid to Amazon.

Once I give my VAT Amazon will they automatically add VAT to my products?

Expert:  TonyTax replied 1 year ago.
If your products are zero rated, there will be no VAT added to your sales. You are the seller, not Amazon. Amazon charge you VAT on the listing fee but once you have your VAT number and you tell Amaxon what it is, they will no longer charge you VAT.

You can only reclaim VAT from HMRC that you paid on stock you still hold when you actually register for VAT.
Customer: replied 1 year ago.

Thank you for that Tony but now I am very confused - It says on the HMRC website that I can back date my vat claim up to 4 years for any business costs where there is VAT to claim back. It also says that I can back date 6 months for claiming VAT back on service (which I assume is what an Amazon seller fee is.

My last question on this service was related to my back dated VAT claim and I was told to gather all the reciepts for the period that I want to back date to.

Nobody that I have asked advice from has said that I can only claim on stock that I hold. I sell printed goods and make to order. I don't hold any stock at all for more than 5 days.

Expert:  TonyTax replied 1 year ago.
As fas as goods are concerned, if you paid VAT on items used to make the printed goods, you can claim the VAT back that you paid before you registered so long as you still have the goods.

If you have been told the listing fees are charged for a service which I think is correct, then you can claim the VAT on those for the six months prior to registration.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15886
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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