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Amazon sellers account and vat

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  • 04-07-2016 9:05am
    #1
    mikefrommeath
    Registered Users Posts: 68 ✭✭


    Hi all

    Does anyone have an Amazon seller account here?

    If so can you answer my question.

    Price: £130.00
    Shipping: £4.64
    Amazon fees: -£24.85
    Your earnings: £109.79

    Above is th dispatch conformation I get from Amazon .

    Do I have to pay vat to on my earrings £109 or have Amazon already collected the vat.??

    As far as I understand Amazon collect vat and do the vat return so that 109 is mine.

    Someone might change confirm ?

    Thanks in advance....


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    #2
    HarvestMoon
    Registered Users Posts: 27 ✭HarvestMoon


    Hi, you pay vat on the £130, Amazon don't collect the VAT as such, their end is all nicely tied up in the commission via a Luxembourg entity, so don't believe they pay vat at all, but that is beside the point (the wonder of being able to hire very expensive lawyers and tax advisers, wonder where the tax adviser got all their knowledge from, check your seller agreement with Amazon!).

    You should be paying vat at 23% to Irish revenue, alternately you can look at distance selling rules and register for VAT in other EU countries, say UK and avail of lower vat rate of 20%, depends on thresholds being met etc.

    That is my understanding of it, may not be technically 100% correct but have researched it a bit for our own business.


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    #3
    mikefrommeath
    Registered Users Posts: 68 ✭✭mikefrommeath


    Thanks for your reply......Do you know if I do not need to charge VAT for the first €35 or €70k?


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    #4
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    mikefrommeath wrote: »
    Thanks for your reply......Do you know if I do not need to charge VAT for the first €35 or €70k?

    You don't have to register for VAT up to 70 but once you do you charge VAT for the lot. There's no VAT free allowance unfortunately!


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    #5
    drunkmonkey
    Registered Users Posts: 28,195 ✭✭✭✭drunkmonkey


    You pay tax on your earrings (profit)
    You collect vat on your sales and claim back vat on your purchases.
    If you think your going to be doing a good bit of buying and selling and incurring vatable expensive it's probably worth registering for vat.


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    #6
    HarvestMoon
    Registered Users Posts: 27 ✭HarvestMoon


    H As above, depends if you are already vat registered or not. If you are registered you should be reclaiming your input vat and offset against the vat payable over to revenue on sales.

    Then you would look at the thresholds and how they may impact.


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    #7
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    This is not a straightforward area. What exactly are you supplying via amazon, goods or services (e-services).

    dbran


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