MMO FBA Selling on Amazon UK - New Beginner Needs Help - VAT and Account Costs

[Sunsetze]

I’m completely new to Amazon, and after doing some research, I’ve finally registered for Amazon UK. I have a few questions, and I hope someone can help me!

1. Amazon charged me £26 for an account fee. From what I understand, if I sell fewer than 40 items per month, Amazon will charge on a per-item basis. Is the £26 a deposit, or will I be charged every month regardless of how many items I sell?
2. Do I need a VAT number before submitting my first listing? I understand that if my sales are under £76,000 and I don’t use FBA, I don’t need a VAT number. Is that correct?
3. I saw that I can apply for a VAT number through Amazon Seller Central. Does this work, or do I need to register on the UK HMRC website?

I’d really appreciate any help!

 

[LinTaru]

If you’re using the pro plan, they’ll take about £24 or so from you each month.

And right now, you don’t need to worry about getting a VAT number.

 

[Sunsetze]

If you’re using the pro plan, they’ll take about £24 or so from you each month.

And right now, you don’t need to worry about getting a VAT number.

I didn’t pick any plan myself — how do I switch it back to the regular one?

 

[Sunsetze]

If you’re using the pro plan, they’ll take about £24 or so from you each month.

And right now, you don’t need to worry about getting a VAT number.

Thanks, I changed the plan, but looks like I can’t get the first month’s money back?

 

[LinTaru]

Thanks, I changed the plan, but looks like I can’t get the first month’s money back?

I’m not totally sure, but you could try reaching out to support — they might give you a refund.

 

[Bubbleanac]

Is it true that if you list something for $15, Amazon takes around $7-$9?

 

[Sunsetze]

I’m not totally sure, but you could try reaching out to support — they might give you a refund.

Trying

Do you know when I would need to use a VAT number?

 

[SummersBase]

You don’t have to start paying VAT until your earnings reach £86,000 in a 12-month period.

 

[Sunsetze]

You don’t have to start paying VAT until your earnings reach £86,000 in a 12-month period.

Thank you! So, I need to add a 20% VAT to my target price, right?

For example, if I want to list an item for £19.99, I would list it as £23.99, and then Amazon would take £3.99 as VAT?

Let me know if I’m wrong.

 

[ForumChell]

It looks like you were tricked into signing up for a professional plan. Amazon can be sneaky like that. You don’t need VAT if you signed up as an individual.

 

[Sadhelenn]

Thank you! So, I need to add a 20% VAT to my target price, right?

For example, if I want to list an item for £19.99, I would list it as £23.99, and then Amazon would take £3.99 as VAT?

Let me know if I’m wrong.

Yes, you're correct!

 

[Captaintis]

I saw that I can apply for a VAT number through Amazon Seller Central. Does this work, or do I need to register on the UK HMRC website?
I’d really appreciate any help!

Once your sales go over around 83,000 in a year, you can sign up for VAT on the HMRC website. After you get your VAT number, make sure to add it to your Amazon seller page.

 

[SummersBase]

Thank you! So, I need to add a 20% VAT to my target price, right?

For example, if I want to list an item for £19.99, I would list it as £23.99, and then Amazon would take £3.99 as VAT?

Let me know if I’m wrong.

Yep, that’s right. I’m not sure if Amazon takes care of it straight away, but you’ll have to pay around 19% on everything you sell. So you’ll need to raise your prices a bit. It’s kind of a headache—when prices go up, people might buy less, and you have to keep track of everything and fill out forms.

Some things, like books, don’t have that tax at all, or have a smaller one.