Selling on Amazon UK - Newbie Need Help - VAT and Account Fee

wkcalvin

Power Member
Aug 15, 2012
787
174
I am totally new to Amazon, I did some searches, finally I registered Amazon UK. here are some questions, hope everyone can help !
1. Amazon charged me £25 for account fee, my understanding is if less than 40 items sold per-month, Amazon will charge on per-item fee basis, is £25 only for deposit or will charge every month despite how many items you sold ?
2. Do I need a VAT number before my FIRST listing submit ? my understanding is if my turn over under £75000 and do not use FBA, I DO NOT need a VAT number, am I wrong ?
3. I found can apply VAT number through Amazon seller central, is this work or I need to register on UK HMRC web site ?
Appreciated if everyone can help me
 
You will be charged £25 every month if you are on the professional plan.

You do not need a vat number as of yet
 
You don’t need to start paying VAT until you get to £85000 turnover within a 12 month period.
Thank you, then I need mark up 20% VAT base one my target sold price ?

E.G. I want to list an item £19.99, then I need list it as £23.99, the Amazon will deduct £3.99 from my sold item as VAT collected.

Correct me if I am wrong.
 
It seems you got hoodwinked into signing up for a professional plan. Amazon is sneaky like that. You don't need VAT if you signed up a a individual.
 
Thank you, then I need mark up 20% VAT base one my target sold price ?

E.G. I want to list an item £19.99, then I need list it as £23.99, the Amazon will deduct £3.99 from my sold item as VAT collected.

Correct me if I am wrong.
Yes, You are right
 
I found can apply VAT number through Amazon seller central, is this work or I need to register on UK HMRC web site ?
Appreciated if everyone can help me
You can apply for VAT registration through HMRC site after your sales crossed 85000 threshold in 12 months. After getting VAT number you must put in in your Amazon seller account
 
Thank you, then I need mark up 20% VAT base one my target sold price ?

E.G. I want to list an item £19.99, then I need list it as £23.99, the Amazon will deduct £3.99 from my sold item as VAT collected.

Correct me if I am wrong.
Yeah that's correct, not sure if Amazon do take it direct but you will have to pay 20% on all sales so you would need to add that to your prices. Massive pain in the arse, prices go up, sales go down and you have keep track of it all and do the paper work.

Some categories have a reduced or 0% vat rate like books are 0%.
 
I am totally new to Amazon, I did some searches, finally I registered Amazon UK. here are some questions, hope everyone can help !
1. Amazon charged me £25 for account fee, my understanding is if less than 40 items sold per-month, Amazon will charge on per-item fee basis, is £25 only for deposit or will charge every month despite how many items you sold ?
£25 is subscription fee. Amazon will charge 15.3% fee on every sales. Some categories its lower than 15.3%. If you do FBA (fulfilment by Amazon) then Amazon will also charge FBA pick pack fee and storage fees.
 
You can claim back any VAT you have paid when you bought the products and the VAT on any seller fees from Amazon when yoUr VAT registered.

If you haven’t hit £85k in the last 12 months then stay away from registering.
 
Yeah that's correct, not sure if Amazon do take it direct but you will have to pay 20% on all sales so you would need to add that to your prices. Massive pain in the arse, prices go up, sales go down and you have keep track of it all and do the paper work.

Some categories have a reduced or 0% vat rate like books are 0%.
After getting VAT number and putting it in seller account setting properly, Amazon will directly deduct VAT on every sales.
 
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