Can anyone help here please? Amazon says that when we "swap" items with another commingling seller, we have to "buy" the item from them, and "sell" our item to them. So this involves two VAT transactions. Which is fine I guess. My question is however: Are these "sales" to other sellers classed as "income" (and the "purchases" an expense)? Obviously they cancel each other out on the income statement. But then our income will be falsely too high. Or is it just the VAT that needs to be in the VAT return (and the sale/purchase doesn't need to go into the accounts)? (i.e. sales VAT goes in box 1, purchase VAT goes in box 4 and that's all)? (At the moment, I treat them as normal sales and purchases, but seperate the commingling income into a different account so that it's clear that it's not "really" income). Many Thanks!