Vat On Ebooks Amazon

For example if in a month you pay 1000 in vat in amazon fees vat on imports etc.

Vat on ebooks amazon. For customers based in the eu iceland norway or switzerland amazon will charge local vat in line with local vat legislation. The reduced rate of 7 will decrease to 5 during the same period. Amazon has confirmed it will cut the price of its kindle ebooks from friday after the government announced it would bring forward plans to stop charging vat on online publications because of the pandemic from a report.

If an ebook used to cost 15 including vat for example the cost would now be 12 50. France italy belgium and iceland were among those who agreed they would lower taxes but the uk did not follow suit with readers continuing to pay 20 vat on digital publications. As part of its economic response to the pandemic the treasury fast tracked plans to remove vat charged at 20 on ebooks introducing the tax cut on may 1.

For customers in liechtenstein and switzerland amazon charges a vat rate of 7 7 for digital products and services. The decision to remove the 20 vat charged on online news subscriptions and books will bring them in line with their physical equivalents which have always been zero rated. The decision to remove the 20 vat charged on online news subscriptions and books will bring them in line with their physical equivalents which have always been zero rated.

The simple version is you pay the government the difference in vat you charge on sales and what you pay out to others. And charge 2000 in vat on end sales you would pay the government the difference which is 1000. Vat is charged at 20 to both consumers and it seems to businesses.

Physical goods are sold by amazon eu uk branch with uk vat number so treat like any other uk supplier. Amazon holds business details including vat number.