E-commerce platforms to deduct VAT at source.
Discussion
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?
Every quarter you will now be claiming VAT back from HMRC and we know how that will go don’t we?
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?
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?
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 Every quarter you will now be claiming VAT back from HMRC and we know how that will go don t we?
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.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 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...
After the budget today I’ve been looking into this and it’s going to effect my business badly on cash flow. If we make a sale for £120 there would usually be £20 VAT which we could use to offset purchases so we would owe VAT on our return. Now we are going to have to pay vat on purchases as we buy them but not get the vat from sales so in effect hmrc will owe us money on each vat return.
This will have a big effect on cashflow as we will be waiting up to 3 months before we can claim the vat back plus however long hmrc take by the time they have carried out their checks and paid it back into our account.
I can’t believe this is right, it is surely going to put a lot of businesses out of business?
This will have a big effect on cashflow as we will be waiting up to 3 months before we can claim the vat back plus however long hmrc take by the time they have carried out their checks and paid it back into our account.
I can’t believe this is right, it is surely going to put a lot of businesses out of business?
Dogbash said:
After the budget today I ve been looking into this and it s going to effect my business badly on cash flow. If we make a sale for £120 there would usually be £20 VAT which we could use to offset purchases so we would owe VAT on our return. Now we are going to have to pay vat on purchases as we buy them but not get the vat from sales so in effect hmrc will owe us money on each vat return.
This will have a big effect on cashflow as we will be waiting up to 3 months before we can claim the vat back plus however long hmrc take by the time they have carried out their checks and paid it back into our account.
I can t believe this is right, it is surely going to put a lot of businesses out of business?
You could change to monthly VAT returns to get the refund in sooner. I do the VAT returns at work and we generally get the refund within a week of submitting the return. They do have up to 30 days to pay it though and you can only chase it up after 30 days. This will have a big effect on cashflow as we will be waiting up to 3 months before we can claim the vat back plus however long hmrc take by the time they have carried out their checks and paid it back into our account.
I can t believe this is right, it is surely going to put a lot of businesses out of business?
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