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VAT and online trading: Part 3 – Selling goods


Neil Warren spots an issue in statements from online marketplaces that could cause sellers to understate their VAT. There are also complications with stock held in other countries.

11th Sep 2020
Independent VAT Consultant
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It is very common for UK businesses to sell their goods on an OMP such as Amazon or eBay. These arrangements can present some tricky VAT challenges, for both the income received from these sales and the payments to the OMP for their fees. I recently dealt with a query where it turned out the business was underpaying VAT.

Statement of sales

The statement from the OMP was quite straightforward; it contained a gross UK sales figure for VAT purposes eg £2,400 including 20% VAT. It also detailed the deduction of the OMP’s fees, let’s say £360. A net amount of £2,040 was paid to the seller.

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By riturajonta
14th Sep 2020 17:28

Great article, a quick question what if the role is reversed, what if OMP is based in UK and seller are from overseas selling goods to UK customer and OMP charges commission on sales to these overseas seller. How will the VAT be affected it this case?

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