So I got a fright this week (just in time for Halloween!)
I’d been querying my Amazon fees as, the fee preview in Seller Central and on the Amazon Revenue Calculator were lower than what I was actually paying.
After three months and lots of back and forth, I eventually got this response from Seller Support:
“The difference you are able to see in the actual fee charged and the fee shown in the fee preview is the VAT charged that have been charged from you. Please be informed that VAT charges are not showcase in the Fee Preview. Moreover, you are being charged for VAT as you are not registered for VAT on Amazon.”
In other words, if you’re not VAT registered, you get charged 20% more on your selling fees.
Maybe you all knew this, and it’s just me who didn’t, but I don’t see this anywhere I’ve looked. Is it obvious? Is it just me who missed it?
Either way, when you’re calculating your profits you need to take this into account. (Jungle Scout have a great spreadsheet you can use for this.)
Unless of course you’re registered for VAT, in which case you don’t pay this. Now, what I don’t know, is what happens if you sell across Europe, but are only registered in some countries. I’m looking into that now and, if/when I find that out I’ll report back!
Was this a surprise to you too?