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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3825
Experience:  FCCA FCMA CGMA ACIS
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There, I wonder if you can help me. I am trying to

Customer Question

Hello There,
I wonder if you can help me.
I am trying to sort out my upcoming VAT return for the first: I sell on Amazon and am able to claim VAT against for my seller fee each month.
Amazon take approx £2,000 in seller fees each month however they take it directly from my sales so I never actually have this money in my bank account. Once I give Amazon my VAT number they will automatically stop charging me VAT on the seller fees. It takes Amazon months to sort this out so in the meantime I am able to claim this VAT back.
The trouble is I am struggling with how I will enter this into my accounts. I am effectively claiming back VAT that my books and bank account never see me paying.
Amazon is classed as a service so I would be claiming VAT back on services paid but my bank account won't show me paying this bill.
Sorry for rambling it's a bit confusing....can you help?
Kindest regards,
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and will try to assist you with your question. You astonish me, I sell on Amazon and the notification of every sale annotates the amount of VAT charged by them on their fee at the standard rate. I then put the sale through my books stripping out my output tax and claiming the input tax. Frankly, I do not see the problem, but then I am an accountant and have been doing VAT ever since the tax was introduced in the early 70s! For the life of me I cannot see how Amazon can stop charging you the VAT on their fee fee just because you give them your VAT number. I have no doubt that you will wish to follow up on his reply!
Customer: replied 2 years ago.

Hello There,

I was hoping that there was any a better way to do this than putting in every individual sale. I sell over 100 items per day at very low value. 80 percent of which are zero rated.

I was hoping that there was a way that I could calculate the value of the zero rated sales per month against the value of the standard rate sales per month and put a lump sum figure in for each. I was then hoping that I could put a lump sum in for the seller fees as a cost ( some how cancelling it out because it was paid at the point of sale and then claim the vat against the seller fee lump sum each month.

Is this not possible?

Kind regards,

Expert:  bigduckontax replied 2 years ago.

I would be inclend to record your sales on a daily spread sheet under headings zero rated, standard rated supplies, cost of sales and VAT both input and outputs. These would be aggregated brough to your ledger accounts monthly as totals. Thus your monthly position would be correct and could then be used to derive your quarterly VAT return.

That is how I account for my companies' sales, although my quantity is far smaller than yours. In an earlier existance with much larger businesses I operated exactly in the manner I described without the slightest difficulty.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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