Some sellers may be using the Date Range Summary Report each month to account for their sales and expenses from Amazon. This report is available in seller central via:

Reports > Payments > Date Range Reports

Date Range Summary Reports do not contain enough information to be sure that you are correctly accounting for your sales and expenses through Amazon. The reason for this is because the summary includes all income from several sources that is outside the scope of UK VAT:

FBA Inventory Credits – when Amazon lose or damage your inventory at FBA warehouses.

They reimburse you for the ex. VAT cost of the item.

They calculate this credit amount by taking an average of your sales price over 30 days and deducting what the FBA and seller fees would have been if you sold it at that price and also removing the VAT element.

This leaves you with the net amount and since they are paying you this in the form of compensation for them.

Losing or damaging your inventory is outside the scope of VAT and therefore you should
not be paying VAT on this income.

Sales where the destination is outside the EU – these sales are also outside the scope of UK VAT and if you are registered for Amazon’s VAT Calculation Service

Then they will not even have charged the customer VAT on the order anyway – the customer will pay the ex. VAT price.

Sales where the destination is an EU country where you hold a VAT registration – these sales are also outside the scope of UK VAT as you will pay VAT on them in the other EU country.

If you do not identify and exclude these transactions, you will in effect being paying VAT twice on them – once in the EU country and once in the UK.

Not Using Date Range Or Want To Learn More?

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