Calling all Amazon FBA sellers - rebate from HMRC!

[samuel5]

Something we never thought about until now, so I'm passing this on for anyone else that overlooked this.

As we know there is no VAT collected for orders shipped to the Chanel Islands.
In error, we have been accounting FBA orders to Channel Islands as normal UK orders - therefore been paying the VAT on them.

Just rang the VAT office and they said we can backdate it 4 years.
Looking at the FBA report for January alone we did £1200 to Channel Islands so that is a quick £200 to reclaim. Going back 4 years and it will be over £9000 reclaimed.

 

[finleydesign]

Bare in mind they set a threshold on what you can reclaim as I understand within your next VAT return, then it's a question of applying to them, could be wrong but I think thats the process

 

[samuel5]

If its under 10K you can just make the adjustment on your next VAT return but must keep a file on it.

 

[finleydesign]

Blimey how things have changed, last time I looked at doing that it was like £1500 limit!

 

[BigTimeTrader]

nice one, thanks for bringing this to our attention.

Also, question:
Seller Fulfilled transaction for £10.00

We pay VAT on the £10.00. However we can offset based on VAT invoice we received from supplier, courier and packaging company which is our basic cost of sale:

item cost
postage (royal mail)
packaging

--------

FBA transaction for £10.00

We pay VAT on the £10.00 but can only offset based on VAT invoice from supplier as the postage and packaging cost is an FBA fee so we have no VAT invoices from their courier or packaging.

That means we overpay VAT on FBA transactions or if not "overpay" in terms of getting a rebate it means we are worse off as we cannot offset VAT like we can on seller fulfilled transactions.

Hope that makes sense.
Thanks,