EBay's headquarters
istock_JHVEPhoto_aw
Tags:

VAT and online trading: Part 3 – Selling goods

by

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
Columnist
Share this content

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.

Register for free to continue reading

It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can:

View all AccountingWEB content
Comment on articles
Watch our digital shows and more

Access content now

Already have an account?
Tags:

Replies (1)

Please login or register to join the discussion.

avatar
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?

Thanks (0)