I have a client who started trading in Amazon - using Amazon warehouses in Germany & France. Therefore he needs to file VAT returns in these respective countries & pay for it.
I am confused about the VAT paid in these countries as to whether the
1. VAT should be treated as a cost (P&L) & account for gross sales in the P&L OR
2. Treat VAT as a liability (B/S) & account for net sales (P&L).
I understand 2nd is the correct option, however would like to get an expert advice.
Regards
SSVS
Replies (4)
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Where is his business
Where is you client registered for VAT? Not sure I understand why he has to file returns in France or Germany? Surely we are talking about the reversing charge treatment for B2B within the EU? I assume he has a GB vat registration?
Why B2B
I would assume the opposite that the sales are not B2B as they are selling via Amazon and hence not covered by the reverse charges!
I had assumed
I would assume the opposite that the sales are not B2B as they are selling via Amazon and hence not covered by the reverse charges!
That he was merely buying stock from warehouses in France and Germany for resale in the UK.
Amazon warehouses
They stock your products and ship direct for you eg in France and Germany