April 19, 2018 by Andrew Minalto - 10 Comments

VAT for Amazon Sellers – The TRUTH No One Wants to HEAR!

Welcome back!

Let’s talk about Value Added Tax (VAT) as it relates to selling on Amazon.

Recently, there has been a storm forming around this subject, especially after the infamous Amazon invalid VAT number email that I covered in last week’s post. I have received tons of emails from my blog readers asking one simple question: DO I HAVE TO REGISTER FOR VAT?

Since I am often responding to each individual with the same answers and information over and over again, I’ve decided to create a blog post that answers this question in as much detail as possible. I will cover as many scenarios as I can think of, so that after reading this post, it is 100% clear whether you, in your specific case, have to register for VAT to sell on Amazon or not. With that, let’s get started!

The Basics of VAT

VAT is something we all hear about and experience on a daily basis, whether it’s through business transactions, Amazon forums, retail shops, or invoices and receipts. VAT (Value Added Tax), as the name suggests, is a consumption tax based on the value of goods and services. This tax is used in all European Union countries, as well as many other countries. In Canada, for example, it is called GST (Goods and Services Tax), but the principle remains the same.

The VAT rate varies from country to country, but in Europe, it is usually around 20%. Here are a few examples of current EU VAT rates for 2018:

  • Belgium – 21%
  • Austria – 20%
  • Denmark – 25%
  • France – 20%
  • Germany – 19%
  • Ireland – 23%
  • Italy – 22%
  • Poland – 23%
  • Sweden – 25%

In the UK, the rate is set at 20%, which actually puts us amongst the countries with lowest VAT rate. In the past, it has been even lower; prior to 4th of January of 2011, the VAT rate in the UK was just 17.5%, and there was once a temporary period where VAT was only 15%.

The VAT rate we are talking about here is the STANDARD VAT rate, which is the rate used on most everyday goods like:

  • Home products
  • Garden products
  • DIY & tools
  • Clothing & shoes
  • Etc.

Basically, most everyday products that you see on Amazon or in your local Tesco will have the standard VAT rate of 20% applied to them. It is the rate you are most likely to encounter on a daily basis. (more…)

April 12, 2018 by Andrew Minalto - 12 Comments

My March 2018 Amazon FBA Update – £17,456.02 in SALES and £4,956.73 in NET PROFIT!

Good news—I’m finally BACK! 🙂

Yes, I have managed to sort out my businesses, the Amazon Sharks program, so that I now have a few extra hours each week. This means I can spend more time on the blog again and that weekly blog posts will resume starting from NOW! When it comes to selling on Amazon, there are so many topics I want to cover, and more importantly, I want to share my own day-to-day operations, ideas I’m testing and mistakes with you too!

So, I will try to publish a new post every Thursday from now on. If you have opted in for my FREE Amazon video, you will receive an email reminder each week when a new post goes live. If you haven’t signed up, you can easily do it from any page of this blog. If you’re on a mobile device, simply sign up from the homepage:

Besides weekly blog posts, starting from next week, I will also post more regularly on my Facebook page. These will be small but important Amazon updates, as well as new tips and tricks I discover on a daily basis. So, if you’re interested in all of that and more, head over to Facebook and Like my page to receive updates on those posts.

Things move fast in the world of Amazon selling. I have noticed that many of the articles regarding product sourcing, importing from China, branding and other topics covered on this blog already need an update, so I will also try to re-write/update the most important archive posts to make sure you’ve got the most relevant and updated information for 2018! (more…)

March 14, 2018 by Andrew Minalto - 6 Comments

My February 2018 Amazon FBA Update – £15,316.28 in SALES and £4,340.22 in NET PROFIT!

Welcome back!

I hope everyone has survived the weather change and has gotten back on track!

In today’s post, I want to share my latest update on how my Amazon FBA business has done in February 2018! If you haven’t seen my January 2018 Profit Update post, make sure to start with that. In that post, you’ll find an introduction and some background information about this business operation.

Results

In February, my sales slowed down. I made £15,316.28, selling a total of 1535 units:

My profit from that was: 1535 x £4 = £6,140

This is my profit after paying Amazon seller fees, FBA fees and VAT. (more…)