- Original Poster
- #1
I thought this is the best place to post this query that has us somewhat unsure on the issue of us overpaying VAT when selling on Amazon marketplace based on seller fulfilled or Amazon fulfilled.
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 = supplier invoice
postage = royal mail invoice
packaging = supplier invoice
--------
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,
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 = supplier invoice
postage = royal mail invoice
packaging = supplier invoice
--------
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,
