E-commerce platforms to deduct VAT at source.

[DSLiverpool]

Sounds typically cack handed, do over 90,000 on an individual platform and they will deduct the VAT of your sales at source and hand you the rest of it minus the platform fees, I can think of many reasons why they’re doing it however they execution should it ever come to fruition will be key and it will be badly handled and it will cause far more stress .

Every quarter you will now be claiming VAT back from HMRC and we know how that will go don’t we?

[MrSparks]

Is the plan for them to deduct the VAT regardless of whether you’re already VAT registered?

That’ll be a nightmare to keep on top of and will affect cash flow especially in low margin business.

[Silverage]

If you're doing over £90,000 you'd have to be VAT registered which presumably is where that figure comes from.

We easily do over £90,000 on Amazon so this would affect us if it ever came to pass. God knows what a VAT return would look like if we'd already paid the output tax via Amazon - how would you show it?

[fellatthefirst]

DSLiverpool said:

Sounds typically cack handed, do over 90,000 on an individual platform and they will deduct the VAT of your sales at source and hand you the rest of it minus the platform fees, I can think of many reasons why they re doing it however they execution should it ever come to fruition will be key and it will be badly handled and it will cause far more stress .

Every quarter you will now be claiming VAT back from HMRC and we know how that will go don t we?

Amazon have been doing this for a while now. Generally our VAT returns are now much smaller than they were because VAT has been collected by Amazon on the sale. It’s hasn’t really had a negative affect on us

[Hill92]

Silverage said:

If you're doing over £90,000 you'd have to be VAT registered which presumably is where that figure comes from.

We easily do over £90,000 on Amazon so this would affect us if it ever came to pass. God knows what a VAT return would look like if we'd already paid the output tax via Amazon - how would you show it?

The online marketplace deemed supply rules already apply to certain non-UK B2C sellers.

The net value of sales is simply recorded in Box 6 as normal. No VAT on the deemed supplies is recorded in Box 1 (the online marketplace does that on their return as they collected the VAT). If most of a business' sales have VAT deducted by an online marketplace then the business may end up in a repayment position (recovering input VAT from HMRC) in which case switching to monthly VAT returns would be wise for cashflow.

https://thevatline.uk/resources/imports-exports-an...