Excellent 4.9 out of 5
Average rating 5.0
Excellent 4.9 out of 5
Average rating 5.0
Ecommerce has some of the most complex VAT rules when selling in the UK and overseas.
We choose the right scheme for you so you pay the lowest effective VAT rate. We then put together your VAT returns and ensure we have claimed back what your business is entitled to.
For ecommerce businesses, the flat rate scheme is 7.5% so if you have a high margin product or low vatable purchases then your business can save £1000s in VAT
If you sell second hand goods from private sellers, then you may not have VAT invoices to claim. We use the marginal scheme so you only pay VAT on the profit.
If you are importing items from overseas, you may have to pay import VAT to clear the border. We can save your cashflow by advising you on the postponed VAT scheme.
HMRC regularly investigates VAT returns to ensure compliance. Even if you have the perfect return it will take time and money to deal with. We provide VAT investigation cover so your fees are covered.
If you want to expand overseas or already selling, you know that VAT compliance in the EU can really hamper your growth. We provide EU VAT services.
Most people don’t realise but many businesses can save tax by being on the right VAT scheme. One of the main schemes we recommend is the flat rate scheme. And in a lot of cases our clients have £1000s of pounds by using this. We always compare the two schemes to make sure you are registered for the VAT scheme where you pay the lowest effective VAT rate.
For sellers who are VAT registered you need to collect VAT on any goods which are VAtable. The VAT rate in the UK is 20%. You will then be able to reclaim VAT on goods or services you incur. On your VAT return you then pay the difference between the input and output tax.
Ecommerce sellers have a £90,000 VAT threshold before you have to register for VAT. Therefore the first £90,000 of your online sales you do not have to charge VAT. You will only have to charge VAT from your effective registration date
From 1 August 2024 VAT is charged on seller fees, FBA fees and advertising fees.
If you are selling cross border, marketplaces are liable for the VAT and they will report the VAT on their one-stop shop return.
If you sell on the UK marketplace and the buyer is in the EU, then Amazon will take responsibility for the VAT. This means you do not charge UK VAT and the marketplace will be liable for the VAT. E.G if you sold an item to Ireland and they bought it on the UK marketplace, the online marketplace will deal with the VAT.
If you send your goods from the UK to the EU there are two solutions, your customer has to pay the VAT or you need to register for the IOSS scheme.
If ecommerce businesses store goods in an EU fulfilment centre then they will have to register for EU VAT in the country they are storing goods in.
If you have been selling online such as Amazon, Etsy, Ebay or Vinted and not declared your income on a self assessment, HMRC may send you an online marketplace letter. This is because they have all the data from the online marketplaces.
The VAT one-stop-shop relates to the IOSS scheme and the OSS scheme. If you are sending goods from the UK to the EU (distance selling) you can register for the IOSS scheme to simply your VAT by only producing one VAT return for all of Europe.
There are certain VAT regulations you must follow certain guidance if you are VAT registered.
We do not use Link My books or A2X. We have our own software which focuses on accuracy and transparent data so it can be reviewed by an accountant or HMRC.
