Amazon.co.uk Associates Discussion Board

 General -  VAT? 
 
From: BOOKLIST2009  6-Oct 05:48 
to: ALL  1 of 5 
 2416.1 

Sorry of this is all rather simple. I am new to this. Ive just started. I realise I get payed a few months after the close of the month. I also realise from teh Help pages that were I registered for VAT I could send a VAT certificate before payment to Amazon. This would mean that they would not take off VAT from the ref fees.

The problem is that I am NOT registered for VAT, and am NOT thereofre allowed by the tax office to send such a certificate. The help pages say nothing about what to do now, and the, frankly hopeless, associate help email system is not responding at all.

Could one of you experienced Associates tell me what happens now? DO I just sit back and wait for the payment and will it (as I assume to be the case) be sliced by 15% or so because of VAT?

Thanks!

 
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From: VW  7-Oct 04:35 
to: BOOKLIST2009 Unread  2 of 5 
 2416.2 in reply to 2416.1 

As an Amazon associate, you get paid commission for any sales you generate. Amazon do not actually charge fees on this commission, so there will be no VAT charged.

Where VAT does affect you is is you are selling your own goods on Amazon. In this case, Amazon will charge seller fees. If you are registered for VAT you can give them your VAT number & they will not charge any VAT on these fees. If you are not registered, then you will have to pay the VAT at 15%.

See https://affiliate-program.amazon.co.uk/gp/associates/help/t18?ie=UTF8&pf_rd%5Ft=501&ref%5F=amb%5Flink%5F3&pf%5Frd%5Fm=A3P5ROKL5A1OLE&pf%5Frd%5Fp=&pf%5Frd%5Fs=assoc-center-1&pf%5Frd%5Fr=&pf%5Frd%5Fi=assoc%5Fhelp%5Fmain

 
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From: BuddhaChris  7-Oct 14:51 
to: BOOKLIST2009 Unread  3 of 5 
 2416.3 in reply to 2416.1 

Hi BOOKLIST2009

Did you resolve the VAT issue in the end?

Like you I'm not VAT registered and I have noticed that my ref fees have already had VAT taken off!

Kind Regards

Chris

 
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From: Loggy  20-Oct 05:36 
to: BuddhaChris Unread  4 of 5 
 2416.4 in reply to 2416.3 

This is the way it should work IMHO. But it depends on where Amazon considers itself to be trading - in the UK or elsewhere in the EU. Cross-border supplies to VAT registered people should not attract VAT but VAT should be charged if you are not VAT registered. There are more complex rules for electronically delivered goods and services.

If Amazon considers itself to be trading in the UK, then the rules should be simple - at least this is what happens with affiliate program providers and I see no reason why Amazon associates should be any different.

If you are not UK VAT registered then Amazon should pay you the commission as stated, which is based I believe on the net price (ie the price less VAT and probably less delivery). For books with no VAT this is the same as the gross price of course apart from any delivery charges.

If you are VAT registered then Amazon should gross up your commission by 15% as their input tax, which they can set against their output tax. Similarly the VAT you receive is your output tax which you set against your input tax. ie they pay you X*1.15, debit Mr Darling X*.15 and you credit Mr Darling X*.15. ie poor Mr Darling gets nothing but it keeps the merry-go-round going...

I will see whether this happens with my first payment hopefully later this month and let you know...

 
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From: Gooner123  5-Nov 02:45 
to: BOOKLIST2009 Unread  5 of 5 
 2416.5 in reply to 2416.1 

Information for Associates established in the EU but outside Luxembourg

Amazon does not pay VAT on your referral fees. If you are an EU resident taxable person established outside Luxembourg you are not required to charge VAT to Amazon EU Sarl. Instead Amazon EU Sarl accounts for the VAT due on this supply under the reverse charge mechanism. This is because, under European VAT legislation, the marketing services provided by EU associates established outside Luxembourg are subject to VAT in the country where the recipient of the service is established (refer article 9(2)(e) of EU Directive 77/3888/EEC).

Even though the services are not subject to VAT in your own country European VAT legislation generally requires you to issue a VAT invoice for services provided to other companies established in the EU. You would not charge VAT on this invoice but you would need to mention Amazon EU Sarl Luxembourg VAT number on the invoice (LU20260743), include the reason why you do not charge VAT and ensure you meet all the other requirements of a VAT invoice as applicable in your country. If in doubt you should verify the requirements with your local tax office or with your tax adviser. Amazon EU Sarl invoice address is listed below:

Amazon EU Sarl, PO Box 362, L-2013 Luxembourg, Luxembourg

https://affiliate-program.amazon.co.uk/gp/associates/help/t18/a1?ie=UTF8&pf_rd%5Ft=501&pf%5Frd%5Fm=A3P5ROKL5A1OLE&pf%5Frd%5Fp=&pf%5Frd%5Fs=assoc-center-2&pf%5Frd%5Fr=&pf%5Frd%5Fi=assoc%5Fhelp%5Ft18

 

 

 
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