Amazon Commingling Income

Discussion in 'Accounts & Finance' started by fluxman, Sep 10, 2019.

  1. fluxman

    fluxman UKBF Newcomer Free Member

    19 0
    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!
     
    Posted: Sep 10, 2019 By: fluxman Member since: Apr 18, 2009
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    16,097 1,797
    Amazon staff based in foreign using a 2nd (or 3rd) language told you to do this regarding UK accounting?
     
    Posted: Sep 10, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. consultant

    consultant Your Business Community Staff Member

    5,436 751
    What is 'Commingling'?
     
    Posted: Sep 10, 2019 By: consultant Member since: Jan 21, 2008
    #3
  4. fluxman

    fluxman UKBF Newcomer Free Member

    19 0
    @consultant You can send a bunch of inventory to amazon, and they basically sell it for you (this is called "Fulfilled by Amazon". Commingling is where 2 sellers sell the same thing on amazon and "share" their inventory (I still own MY inventory, but if a seller has the same item that's more efficient for Amazon to send, they'll "swap" the items (via a sale and purchase)).

    @Mr D
    I think Amazon have UK Tax experts. The information regarding Commingling VAT transactions can be found here:
    (Type "Why have Commingling transactions been reported in my Amazon VAT Transactions Report?" into google)

    (right at the bottom of the page).
     
    Posted: Sep 11, 2019 at 8:05 AM By: fluxman Member since: Apr 18, 2009
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    16,097 1,797
    Amazon also have a reputation for telling sellers incorrect information. You need to verify what they tell you.
    It's not them who get into trouble if you do stuff wrong.
     
    Posted: Sep 11, 2019 at 9:58 AM By: Mr D Member since: Feb 12, 2017
    #5
  6. consultant

    consultant Your Business Community Staff Member

    5,436 751
    Are you sure that isn't co-mingling?
     
    Posted: Sep 11, 2019 at 10:06 AM By: consultant Member since: Jan 21, 2008
    #6