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Amazon Vat

Amazon Vat

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Struggling to get my head around Amazon and Vat. Understand recent changes. Could do with some pointers. Maybe overthinking it but seems complicated.

Client partnership with wife. UK based. Not Vat registered as below turnover limit. Sales in France and Germany, being charged Vat on overseas sales now by Amazon, client says this recent change.

Any help would be appreciated as getting myself confused. Thanks in advance,

 

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By SXGuy
29th Jul 2021 08:04

What's the actual question? If client isn't vat registered so the full cost is the expense. What is the issue?

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Replying to SXGuy:
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By Tax Dragon
29th Jul 2021 09:09

Same school Paul Crowley. English Vinglish. Words shmords.

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Jason Croke
By Jason Croke
29th Jul 2021 09:21

You don't say where the goods are at time of sale (is the stock in UK or France/Germany) but either way, where goods are sold by an online marketplace, the online marketplace is required, by law, to charge VAT to the French/German customer.

So you list an item as £10 on the website, if a French customer buys, then Amazon will add 20% (French VAT rate) and remit the VAT to French taxman and your client gets their £10 minus Amazons listing fees.

There are plenty of articles on this, Import One Stop Shop, so do a Google, I've also done an article here https://www.accountingweb.co.uk/tax/business-tax/two-oss-schemes-start-o...

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By Refs1
29th Jul 2021 17:47

Jason Croke many thanks for this it is really helpful. I believe the goods are in the UK. This makes a lot more sense now. Thanks again.

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