Amazon - Incorrect VAT invoices

Amazon - Incorrect VAT invoices

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Good Evening

We purchase quite a lot of items from Amazon.co.uk and they constantly provide invoices showing the wrong VAT element if they are running a discount/promo on an item.

To query the VAT you have to email them or go through the joys of speaking to a customer service representative and then they will post (they don't have the ability to email..!) the correct invoice to you and in most cases you are waiting at least 14 days for it to arrive.

These purchases can range from £20 to £500 and are always for standard rated electrical items

As an example we currently have around 50 invoices over a 3 weeks period with the incorrect VAT on them and in one example the purchase price is £159.99 with VAT showing as £45.21.

The item was £271.25 and has a promo discount showing of £111.26. So the VAT of £45.21 is based on the standard price of £271.25 and not based on the price we have paid for the item.

So the question is....

A) Do I have to "police" Amazon and constantly waste my time requesting correct VAT invoices because they are hopeless.

B) Can I process and claim the VAT back even though I know it is wrong and if ever quizzed by HMRC point them in the direction of Amazon to chase them for the extra VAT..!

C) Keep copies of all the incorrect VAT invoices and when posting in Sage just amened to the correct rate of 20% to reflect the correct VAT amount.

Regards

Richard

Replies (6)

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By pawncob
04th Jan 2016 21:30

VAT must be charged on the full price, with an adjustment for settlement discount if applicable.

https://www.gov.uk/vat-businesses/discounts-and-free-gifts

 

AS long as you're reclaiming a lower VAT amount as input tax, you don't need an amended VAT invoice, but I'd write to Amazon and HMRC and explain the position to them.

 

A. Yes, but see above.

B. Yes

C. Yes.

Thanks (1)
Replying to fawltybasil2575:
RLI
By lionofludesch
07th Jan 2016 12:39

Surprised

pawncob wrote:

VAT must be charged on the full price, with an adjustment for settlement discount if applicable.

https://www.gov.uk/vat-businesses/discounts-and-free-gifts

 

AS long as you're reclaiming a lower VAT amount as input tax, you don't need an amended VAT invoice, but I'd write to Amazon and HMRC and explain the position to them.

 

A. Yes, but see above.

B. Yes

C. Yes.

Bit surprised at B, pawncob. It doesn't seem to correlate with the rest of your answer - with which I otherwise agree in its entirety,

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By cparker87
04th Jan 2016 23:28

Yes
No
Yes

You can't knowingly over recover input VAT. I would just take option 3.

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By Vidpark
05th Jan 2016 09:10

Wonder if a small trader would get away with these invoices?

Reminds me of when the carousel fraud measures came in mobile phones and one of the big providers made virtually no effort to comply without any apparent consequences.

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By pharvey
07th Jan 2016 12:35

Why buy from Amazon

Just don't buy from them or buy the very minimum. All their products are available elsewhere at similar prices and service and when you find a good and communicative supplier, stick with them. I got fed up with the corporate gobbledegook that you get from this mammoth a long time ago and avoid them like the plague.

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By ColinNibbs
07th Jan 2016 15:51

Use local people

Totally agree with pharvey. Don't use Amazon as alternatives are available elsewhere. If you are in Liverpool, one of my clients is an electrical wholesaler who I am sure will be able to beat Amazon prices for you.

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