Amazon Business Transaction incurring 20% UK VAT

Kingkong

Hi Guys;

I am unsure how to account for invoices incurring UK VAT.

I am an Irish VAT Registered person.

What I am doing at the moment using Sage One is:

Per Amazon Invoice:
Goods 100GBP
VAT: 20GBP

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Total: 120

P/L - 100 Expenses (ticking No VAT for VAT 3 Form as it's not Irish VAT & not a reverse charge)
P/L - 20 (UK VAT not reclaimed)
Bank - 120

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This way I am taking the full 120 to the P/L.
I know I can claim back the UK VAT from the HRMC and technically I should not be charged UK VAT but Reserved Charge rule isn't always applied on Amazon.

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Does anyone see anything wrong with this?

Thanks

Paddy001

Hi, that is correct assuming you do not intend on reclaiming the VAT through the appropriate channels.

You should be able to provide your VAT number to them so that you are not charged UK VAT.

Sleeper12

I have an amazon business account. Give them your vat number and you'll never be charged vat again. Well at least you won't between now 30th March. After Brexit I'm not sure what will happen

Kingkong

Thanks, Guys for confirming I am doing it right. I have given them my VAT number but some items are brought through the marketplace as opposed straight from Amazon and some of the supplier's arent applying VAT correctly. I also get caught out when some goods won't ship to an Irish address and use DPD forwarding services which changes the place of supply to the UK.

Thanks

Sleeper12

Kingkong wrote:

Thanks, Guys for confirming I am doing it right. I have given them my VAT number but some items are brought through the marketplace as opposed straight from Amazon and some of the supplier's arent applying VAT correctly. I also get caught out when some goods won't ship to an Irish address and use DPD forwarding services which changes the place of supply to the UK.

If the address isn't delivered to an Irish address they have to charge the vat. I got caught out with parcel motel once but the trader was in the right