Anyone Selling On Amazon USA?

Discussion in 'Ecommerce Forum' started by JamieM, Mar 6, 2019.

  1. JamieM

    JamieM UKBF Ace Free Member

    2,273 343
    Is anyone here running a UK business selling on Amazon.com in USD?

    Can you please let me know how you go about accounting for your sales and expenses and in particular how you deal with the exchange rate?

    I am currently recording sales and expenses manually using the two weekly statements. I use the exchange rate for the GBP transfer to our bank account but it gets tricky because Amazon hold a balance and obviously the exchange rate is likely to be different in the following two week period. This makes it difficult to reconcile the accounts accurately.

    Anyone got a better solution?
     
    Posted: Mar 6, 2019 By: JamieM Member since: Mar 22, 2006
    #1
  2. apricot

    apricot UKBF Regular Free Member

    319 25
    Open an account with Transferwise
     
    Posted: Mar 7, 2019 By: apricot Member since: Apr 7, 2012
    #2
  3. JamieM

    JamieM UKBF Ace Free Member

    2,273 343
    We might consider this in the future but at this point it just creates another issue of accounting in USD and having to convert for VAT returns.
     
    Posted: Mar 7, 2019 By: JamieM Member since: Mar 22, 2006
    #3
  4. apricot

    apricot UKBF Regular Free Member

    319 25
    Can you clarify this a bit more?

    I send Eur/Eur for a fee of 0.80p. I believe it would be work Usd/Usd too.
     
    Posted: Mar 7, 2019 By: apricot Member since: Apr 7, 2012
    #4
  5. JamieM

    JamieM UKBF Ace Free Member

    2,273 343
    Even if we use TransferWise and maintain a USD balance we still have to prepare our accounts in GBP.

    Also the Amazon referral fee is a VATable service so we would still need to convert this portion of the fees from USD to GBP for our VAT returns. I think it would make the accounting even more complicated.
     
    Posted: Mar 7, 2019 By: JamieM Member since: Mar 22, 2006
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  6. jjscruff

    jjscruff UKBF Regular Free Member

    152 7
    Posted: Mar 11, 2019 By: jjscruff Member since: Aug 9, 2013
    #6
  7. apricot

    apricot UKBF Regular Free Member

    319 25
    Why not open a USD and GBP accounts with Transferwise, receive the payment in USD then convert into GBP. This is what you would do anyway even if you have a local USD bank account.
    Why do you pay VAT for US payments anyway?
     
    Posted: Mar 11, 2019 By: apricot Member since: Apr 7, 2012
    #7
  8. Danny Whitaker-Leach

    Danny Whitaker-Leach UKBF Newcomer Free Member

    2 0
    Jamie the Amazon fee isn't vatable because Amazon are registered in Europe not the UK
     
    Posted: Mar 12, 2019 By: Danny Whitaker-Leach Member since: Feb 1, 2019
    #8
  9. JamieM

    JamieM UKBF Ace Free Member

    2,273 343
    Thanks but I'm not sure this would improve on my current method. Surely this means the Amazon account could never be reconciled properly?

    Amazon.com fees are billed from Las Vegas with an EU VAT registration and VAT is charged unless you submit your VAT number. You can then use the reverse charge rule in the same way as Amazon Europe. However, even in this case you still need to convert to GBP as these reverse charge figures need to be recorded in your VAT return.

    Just to note, it's only the referral fee that seems to be VATable for Amazon.com, not the fulfilment or PPC fees.
     
    Posted: Mar 12, 2019 By: JamieM Member since: Mar 22, 2006
    #9
  10. Pish_Pash

    Pish_Pash UKBF Ace Free Member

    2,353 589
    You'd be wise not converting your USD to GBP every two weeks using Amazon's exchange rate (their rate is not optimum)...just keep everthing in USD & have them deposit the USD to a currency broker (I use World First)....you can then convert to GBP as & when you see fit (though obviously by going this way, it's a gamble on which way rates go while your money is still sitting in USD - since the Brexit referendum, that would have been a good play - not sure it will be quite the same going forward!. Nothing to stop you then instantly converting your USD to GBP.. at least you'll receive a better rate.

    From an accounting perspective, every transaction has a Sterling equivalent. I use floatrates ... http://www.floatrates.com/ (I coded up a simpleAPI to pull in EUR, AUD & USD exchange rates in twice daily) for my exchange rates but you could use HMRC's.
     
    Posted: Mar 12, 2019 By: Pish_Pash Member since: Feb 1, 2013
    #10
  11. Page

    Page UKBF Big Shot Free Member

    3,554 265
    You need to think multi currency.

    It does not matter than they hold some back. That is just in dollars
     
    Posted: Mar 15, 2019 By: Page Member since: Jul 28, 2007
    #11