Muhammad Wamiq Junaid’s Post

📢 Do you sell on Amazon? If so, you're going to want to read this... Amazon has recently announced changes in the VAT treatment of fees that will significantly impact UK sellers. Previously, UK VAT-registered sellers only paid VAT on UK advertising fees which were billed from London. All other fees were billed from Luxembourg and generally fell under the Reverse Charge Mechanism. So what's changed? 🤔 Since 1 August 2024, Amazon have been billing UK VAT-registered sellers for fees from inside the UK. Therefore UK sellers are now charged VAT and will need to claim back this VAT on their VAT return going forward. Discover what fees are impacted and the new VAT rates in our blog post here: 💻 https://ow.ly/N12O50TEn58 Contact your local Whitings LLP office today for more advice or information on this topic. #WhitingsLLP #Accountants #Amazon #VAT #SellingOnAmazon

UK VAT Updates Amazon has started charging VAT on the following fees: Ads, Storage, Inbound Transportation, and Service Charges. Exemptions are no longer available on marketplaces. Marketplaces have simplified the VAT process. Anyone with sales in the UK must collect and submit VAT. Your legal status in the UK will determine how you handle VAT. If you live in the UK, you can submit VAT and claim any overpayments. If you are not living in the UK, you do not have this privilege. hashtag #UKVAT hashtag #AmazonSellers hashtag #VATUpdate hashtag #Ecommerce hashtag #TaxCompliance hashtag #MarketplaceSellers hashtag #UKBusiness hashtag #AmazonFees

In the UK, Since Aug '24, Amazon has implemented 20% VAT on Amazon fee (both fulfillment and referral fee). As advised by a tax consultant, this 20% VAT can be claimed back if a seller is registered in the 20% VAT Scheme. And if a UK Resident is registered in 20% VAT instead of 7.5% then the overall Tax amount paid to HMRC will increase. By these Taxes, Selling in Amazon UK has become challenging whether a seller is UK Resident or Non-UK Resident. Solutions to mitigate VAT Affect: A. Start selling on other marketplaces as well like TikTok Shop in the UK, as a product can be sold out at a higher margins and overall business ROI can be increased. B. As a seller, we should keep negotiating with suppliers for less landing costs. C. Move to other markets like Amazon USA, if not done yet. #Ecommerce #AmazonFBA #SalesGrowth #amazonsellers #Selfhelp #amazonvat

In the UK, Since Aug '24, Amazon has implemented 20% VAT on Amazon fee (both fulfillment and referral fee). As advised by a tax consultant, this 20% VAT can be claimed back if a seller is registered in the 20% VAT Scheme. And if a UK Resident is registered in 20% VAT instead of 7.5% then the overall Tax amount paid to HMRC will increase. By these Taxes, Selling in Amazon UK has become challenging whether a seller is UK Resident or Non-UK Resident. Solutions to mitigate VAT Affect: A. Start selling on other marketplaces as well like TikTok Shop in the UK, as a product can be sold out at a higher margins and overall business ROI can be increased. B. As a seller, we should keep negotiating with suppliers for less landing costs. C. Move to other markets like Amazon USA, if not done yet. #Ecommerce #AmazonFBA #SalesGrowth #amazonsellers  #Selfhelp #amazonvat

Note to European sellers 📣 As of 1st August 2024, Amazon will begin charging VAT for most VAT registered sellers if your company is established in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium or Sweden. Currently, Amazon does not charge VAT on invoices to VAT registered sellers on the basis that this is billed from their Luxembourg head office. Moving forward it'll be billed from the relevant Amazon office in your country of establishment. This means that from this date, the way you need to process your Amazon fee invoices will change. Rather than being charged no VAT at all, Amazon will begin to charge you this meaning that you will need to reclaim through your VAT returns. #amazon #amazonuk #amazoneu #ecommerce #business

📢 Attention UK Sellers! 📢 Starting today, August 1, 2024, Amazon will be charging a 20% VAT on all your Amazon fees. This means all UK sellers will need to account for this additional cost. But there's good news! If you're VAT registered on 20% in the UK, you can claim this VAT back from HMRC during your VAT return period. However, please note that non-VAT accounts and accounts registered on reduced rates i.e 7.5% or 6.5% will not be able to claim this back. So, adjust your prices accordingly and no need to panic. If you're not obliged to register for 20% VAT, don't register just yet. Monitor market trends for a few days and wait for other sellers to adjust their prices accordingly. Stay informed and ensure your business stays compliant. #amazon #amazonfba #amazonseller #amazonuk #ukbusiness

AMAZON UK MARKET VAT CHANGES FROM 1st AUG 2024 According to the updated policy of the Amazon UK market, VAT is being deducted from day one, regardless of whether you are a UK resident or overseas. 1) you will be able to claim the VAT via your accountant from HMRC - if do not meet the criteria. 2) All product prices likely to increase as every seller will either raise product prices to adjust margins or reduce their margins. Will be making videos on this.

IMPORTANT INFORMATION - AMAZON SELLERS If you are trading through Amazon, PLEASE read the below information. From 1 August 2024, the selling fees charged by Amazon to UK vendors are subject to VAT at 20%. Yes, you read that correctly. 20% There has been a change in the legal entity that charges the fees. Previously, fees were charged by Amazon Service Europe S.a.r.l (ASE), which did not have a UK establishment, so the fees were subject to the VAT reverse charge procedure. From 1 August, however, fees will be charged by Amazon EU S.a.r.l (AEU), which has a UK branch. This means that AEU must charge VAT at 20% on fees. What does this mean for you? ✅ Vendors who are VAT-registered will be able to reclaim the VAT, subject to the usual partial exemption rules ❌ Those who are NOT VAT-registered will see their selling fees increase by 20% because they cannot claim the VAT back. Unfortunately, the people REALLY being impacted are your customers. For more information, see: https://lnkd.in/emA6FKYt #Amazon #Fees #VATRegistration

AMAZON UK MARKET VAT CHANGES FROM 1st AUG 2024 According to the updated policy of the Amazon UK market, VAT is being deducted from day one, regardless of whether you are a UK resident or overseas. 1) you will be able to claim the VAT via your accountant from HMRC - if do not meet the criteria. 2) All product prices likely to increase as every seller will either raise product prices to adjust margins or reduce their margins. Will be making videos on this.

REMINDER for all Amazon Sellers based in the UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, or Sweden... All of the fees that used to be Reverse Charge VAT will now have local VAT rates charged! This was announced a little while ago and has come into effect from today (1st August 2024). What does this mean? Ultimately, your disbursements from Amazon will be less than they were before because you've paid VAT on things like FBA Fees. What can you do? Two things: 1. Speak to your accountant / finance team to make sure you're ready to claim the VAT back in your normal returns. 2. Update your financial forecast to ensure cash flow planning is reflected. The best time to plan for this was when it was first announced...the second best time is now. #AmazonSeller #AmazonTip #AmazonAgency