Reply to: New to LTDCo - Amazon Business/VAT query

[Eirikur]

depends on the vendor. If it's Amazon then you'll get one.
I have found that if a VAT invoice is not provided I just go to return the item. Most marketplace vendors will cough up an invoice if it's a choice between that and a return

It is actually a legal requirement to provide a VAT invoice on request if VAT has been charged.

I know, but I was tired of chasing the vendors and they hardly ever came back with a VAT invoice, so I decided to open a business account, so far I got one each and every time

[Lance]

I signed up because they give VAT receipts which is often not the case with a regular Amazon account

depends on the vendor. If it's Amazon then you'll get one.
I have found that if a VAT invoice is not provided I just go to return the item. Most marketplace vendors will cough up an invoice if it's a choice between that and a return

It is actually a legal requirement to provide a VAT invoice on request if VAT has been charged.

[Eirikur]

Stop doing silly things like this until you have a clue about what you are doing.

I signed up because they give VAT receipts which is often not the case with a regular Amazon account

[sparkyjf]

Thank you all for your advice - I'm not buying a lot, but I've needed a few things to get started, and from time to time my job calls for me to prototype and demonstrate solutions to clients, which (if I've understood correctly) it makes sense to put through the LTDCo as they are being used to support the business, even though I'm a one man band. If Amazon Business causes me potential tax/VAT issues then I'll move away from it for sure - for now it's a learning experience and whilst I have no desire to be a tax expert, I do want to learn enough that I can make good decisions for the LTDCo and not end up under the microscope!

[Lance]

I don't think it's that common. Either that or people don't really mention it. I seem to think SimonMac said he had it once but didn't use it enough to make it really worthwhile so I didn't bother. Couple of others have them but I'm not sure it's common place. One man LTD's hardly have to buy a lot of stuff.

I have one. They even gave me £1500 credit and 30 day payment terms.
Never used it as I have prime on my personal account and prefer the improved delivery.

[northernladuk]

as I guessed that Amazon Business accounts were a fairly commonplace thing(?)
.

I don't think it's that common. Either that or people don't really mention it. I seem to think SimonMac said he had it once but didn't use it enough to make it really worthwhile so I didn't bother. Couple of others have them but I'm not sure it's common place. One man LTD's hardly have to buy a lot of stuff.

[sparkyjf]

Hang on.. You have an accountant yes? And FreeAgent?

Yes indeed. Some of this got lost in crossposting early on because I was being moderated. This question has been before the accountant, but he seemed to be using up an entire annual leave allocation in the run up to Christmas and the subject of VAT from Amazon Business was answered by a junior who seemed remarkably unsure himself ("They seem to be applying the EU rules...." didn't fill me with confidence that I was doing the right thing). It's gone back to my accountant proper, and I would expect an answer this week once he clears his inbox - however this forum has come up a number of times as I've researched various aspects of LTDCo life and so I thought I'd stick my head above the parapet and join, as I guessed that Amazon Business accounts were a fairly commonplace thing(?)

To be clear and reiterate - I'm not out to **** the VAT man - nor have I used this account for personal shopping - I just want to learn how it works and what my part is in it so that I don't end up later on finding out that I ****ed someone. The whole concept of VAT free shopping without the need to claim back (my accountant told me initially that I would be charged VAT and then claim it back) seems too easy and prone to abuse to me - and I'm generally a believer that if something seems to easy, you probably need to take a second look.

[northernladuk]

Love it! Yes I've got that loud and clear - yet to do my first VAT return but I'm being super careful to try and work out what I'm doing and make sure the books are up to date and accurate by the time that point comes. I thought an Amazon Business account was going to be quite simple to operate but this being charged ex-VAT pricing has thrown me. Have gone back to double check with my accountant - the last thing I want is to be picked up on VAT fraud or something similar.

Hang on.. You have an accountant yes? And FreeAgent?

[sparkyjf]

There was also something about invading landlocked countries in Southeast Asia, but I can’t remember if it was a Do or Don’t, and TBH it’s never cropped up.

Well I grew up in Hong Kong so my views are probably very un-PC in 2020. If it crops up, I'll let you know.

[Old Greg]

Love it! Yes I've got that loud and clear - yet to do my first VAT return but I'm being super careful to try and work out what I'm doing and make sure the books are up to date and accurate by the time that point comes. I thought an Amazon Business account was going to be quite simple to operate but this being charged ex-VAT pricing has thrown me. Have gone back to double check with my accountant - the last thing I want is to be picked up on VAT fraud or something similar.

There was also something about invading landlocked countries in Southeast Asia, but I can’t remember if it was a Do or Don’t, and TBH it’s never cropped up.

[sparkyjf]

My old Dad taught me:

1 Never sign for anything.
2 Never volunteer for anything.
3 Never **** the VAT man.

Love it! Yes I've got that loud and clear - yet to do my first VAT return but I'm being super careful to try and work out what I'm doing and make sure the books are up to date and accurate by the time that point comes. I thought an Amazon Business account was going to be quite simple to operate but this being charged ex-VAT pricing has thrown me. Have gone back to double check with my accountant - the last thing I want is to be picked up on VAT fraud or something similar.

[Old Greg]

Oh dear.....

Don’t mix personal and business finances.....

The VAT is not being charged as you’ve provided the VAT number and Amazon are using EU rules to not charge it.
YOU CANNOT RECLAIM VAT THAT HAS NOT BEEN PAID.

Not paying VAT on personal purchases is VAT fraud. You can go to prison for that.
Even thought the VAT people have merged with the income tax people it doesn’t mean they have suddenly become as nice as them income tax people.

DONT **** THE VAT MAN.


FOG.

My old Dad taught me:

1 Never sign for anything.
2 Never volunteer for anything.
3 Never **** the VAT man.

[northernladuk]

Works for me - as long as I'm doing the right thing by the VAT man then I'm happy.

And HMRC by not buying personal items though it. I'd stay steer away from it until you learn the rules. Starting of with bad habits always causes problems

[sparkyjf]

Keep it simple.


If the invoice has a VAT amount on use that.
If the invoice has no VAT amount then put it as 0% in FreeAgent.
Even if the vendor has charged VAT, if they've not put it on the invoice, then you can't claim it back.

That's simple and means that, like me, you don't need to be a cross-border VAT expert. It's on the invoice or it's not.

Works for me - as long as I'm doing the right thing by the VAT man then I'm happy.

[Lance]

This suggests that some kind of accounting/charging is necessary on my end - my accountant's initial advice was simply to enter the transactions into FreeAgent using a zero VAT rate, but that text implies more is required. I've been careful not to claim VAT that I've not paid, but even so something doesn't seem quite right. I won't hear more until Monday from the accountant, but I'll update when I find out more. Thanks for your suport.

Keep it simple.


If the invoice has a VAT amount on use that.
If the invoice has no VAT amount then put it as 0% in FreeAgent.
Even if the vendor has charged VAT, if they've not put it on the invoice, then you can't claim it back.

That's simple and means that, like me, you don't need to be a cross-border VAT expert. It's on the invoice or it's not.