Accounting for vat on Amazon sales (UK)

redsunflower25
redsunflower25 Feels At HomeRegistered Posts: 38 πŸ’« 🐯 πŸ’«
Hi

I'm looking for some help in accounting for VAT on Amazon sales. I have an invoice which isn't very clear as to what is vatable and what isn't... can any one help with this please?

My logic is (please say if I'm wrong!!) that you pay vat on the total sales/income and don't claim on the Amazon fees as they are based in Luxembourg...

What about the gift wrap/shipping costs? The invoice does split this.

Any help would be much appreciated.

Comments

  • Gem7321
    Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    I think you will probably have to reverse charge the amazon seller fees.
  • redsunflower25
    redsunflower25 Feels At Home Registered Posts: 38 πŸ’« 🐯 πŸ’«
    thanks, that's what another member said, its very confusing though! Guess they wouldn't make these thing simple
  • Gem7321
    Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    It's quite simple! Put the VAT amount in Box 1 and Box 4 and the net amount in Box 6 and Box 7. http://www.hmrc.gov.uk/vat/managing/returns-accounts/completing-returns.htm#5

    If you use Sage you should have tax codes already set up for reverse charges.
  • redsunflower25
    redsunflower25 Feels At Home Registered Posts: 38 πŸ’« 🐯 πŸ’«
    In sage I use T8 which pulls it into box 2 and 4, should it be box 1 or 2?

    Thanks!
  • Gem7321
    Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    According to the link in my previous post it's Box 1. Box 2 is for straightforward EC purchases rather than RC.
  • redsunflower25
    redsunflower25 Feels At Home Registered Posts: 38 πŸ’« 🐯 πŸ’«
    Ok, thanks, will have a play with sage, I made a new company to play with so will see which T codes I need. Thanks for your help
  • Gem7321
    Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    I do my adjustments manually but if it helps on my Sage the reverse charge t code is T20
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