Many Amazon sellers are reaching out to me asking for help with Postponed VAT Accounting for their businesses. This article outlines the most important information about the scheme, who can use it, and how to fill in your customs declaration and VAT Return. 

How does postponed VAT accounting work?

After the UK officially left the EU on January 1st 2021, importers were required to pay VAT on goods entering the UK if the value of the goods exceeded a certain threshold. The UK government created the postponed VAT accounting scheme to help businesses avoid a negative impact on their cash flow by delaying the VAT payment. 

Without the postponed VAT scheme, commercial goods over £135 entering the UK would be held at customs until the VAT was paid. Now, businesses can delay the payment by recording the import VAT on their quarterly VAT Return instead of paying it immediately. 

Who can postpone VAT?

To be eligible for the postponed VAT accounting scheme, you must be a UK VAT registered business who imports goods for business use into the UK. 

It is an optional scheme, so you can pay the VAT immediately if you wish. You also do not need approval to postpone the VAT, you can start using this system immediately if you are VAT registered. 

For businesses in Great Britain, this scheme applies to imports from anywhere outside the UK. 

Since Northern Ireland is still part of the EU VAT area, the postponed VAT scheme does not apply to imports into Northern Ireland from the EU. In these cases, the reverse charge will still apply. For imports from anywhere else in the world, you can postpone the VAT. 

Furthermore, sales between Northern Ireland and Great Britain are considered domestic transactions and are not eligible under the scheme. For these sales, the standard UK VAT procedure will apply. 

Postponed VAT on your customs declaration

If you decide to use the postponed VAT accounting scheme, you will need to declare this on your customs declaration. Since customs declarations can be complex, most businesses hire a transporter or customs expert to complete them. 

Here are a few fields that must be completed on the customs declaration if you wish to postpone the VAT:

• Your “GB” or “XI” (Northern Ireland) EORI number
• Your UK VAT number (VRN)
• Box 47e (method of payment) stating that you wish to postpone the VAT payment – use code “G”

If your customs declaration is incorrect or missing the above information, you may experience delays or penalties. Make sure that you keep records of your customs or VAT declarations for at least 6 years. 

Postponed VAT on your VAT Return

If you have postponed VAT on your imports, you will need to declare the VAT on your VAT Return. You can download your VAT statement which includes the deferred VAT payments from a specific period from the CDS customs system. Once you have your statement, you can include those figures in the following boxes on your VAT Return:

• Box 1: Include the VAT due from postponed VAT accounting
• Box 4: Include the VAT reclaimed on imports from the postponed VAT scheme
• Box 7: Include the ex-VAT value of imported goods 

If you choose to not use the postponed VAT scheme for some imports, you will only enter the figures in boxes 4 and 7. 

It is important to correctly record the postponed VAT on your VAT Return in order to avoid penalties and mistakes. Since processes change quickly, you should seek the most up to date advice from the UK Government website. 

I hope you found this article helpful. If you are experiencing issues with your Amazon Seller Account and your Seller Account already received a warning or is under a review, I can help you resolve the matter.

If you would like to hire me to privately assist you, feel free to subscribe and reach out through my dedicated assistance page at www.onlyfans.com/kikaangelic, where I provide support with Amazon related matters in exchange for a small $24.99 fee. Alternatively, you can post into my free public discussion forum for Amazon Sellers, where I will answer your question.

To stay in touch, feel free to join and post into my large Amazon Seller Performance – Friendly Advice – Worldwide Facebook group, where you will be very welcome.

Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Additionally, here you can watch my YouTube video, where I am addressing everything you need to know about Seller Identity Verification and how to pass it:

As an Amazon seller, one of the challenges you may encounter is dealing with excess inventory or unsellable customer returns. To mitigate the financial impact of these situations, Amazon offers value recovery options such as refurbishment and liquidation. In this article, I will be explaining the differences between refurbishment and liquidation and help you make informed decisions about which option suits your business needs.

Refurbishment

Refurbishment refers to the process of repairing, reconditioning, and restoring a product to a like-new condition before reselling it. These products undergo a thorough inspection to identify any defects or malfunctions. Once identified, these issues are addressed through repairs or component replacements. Additionally, the product is extensively tested to ensure it meets quality standards.

To enhance the cosmetic appearance, refurbishment may involve cleaning, polishing, and replacing damaged parts. The goal is to present the product as close to new condition as possible. They are also repackaged in suitable packaging to ensure a professional presentation.

Advantages:

• Higher Potential Profits: Refurbished products generally command higher prices compared to liquidated items due to their improved condition.
• Customer Trust: Offering a refurbished option can help build trust with buyers who seek high-quality, affordable products.
• Sustainable Practice: By refurbishing and reselling products, you contribute to reducing waste and promoting a more sustainable business model.

Liquidation

Liquidation refers to the process of selling excess inventory or customer returns in bulk, usually to third-party buyers or resellers. It involves selling a large quantity of products at a discounted price, typically in “as-is” condition. The items may have minor defects or cosmetic imperfections that make them unfit for refurbishment.

Several online platforms specialize in liquidation sales, connecting sellers with buyers interested in purchasing merchandise at a reduced price. These platforms handle logistics, facilitate auctions, or offer fixed-price listings.

Advantages:

• Quick Inventory Clearance: Liquidation allows you to rapidly offload excess inventory, freeing up valuable storage space and reducing holding costs.
• Speedy Cash Flow: Selling items in bulk provides an immediate influx of capital, which can be useful for reinvesting in new inventory or covering expenses.
• Simplified Process: Liquidation platforms streamline the selling process, often handling logistics, payments, and buyer interactions.

When faced with excess inventory or customer returns on Amazon, it’s essential to evaluate your value recovery options. Refurbishment allows you to repair and restore products to a like-new condition, catering to customers seeking quality at a slightly reduced price. On the other hand, liquidation offers a faster solution for clearing large quantities of products, providing quick cash flow but at a lower price point. Assess your business requirements, product conditions, and customer demands to determine which option aligns best with your goals. Remember, each situation may call for a different strategy, so understanding the nuances of refurbishment and liquidation empowers you to make informed decisions and optimize your selling potential on Amazon.

I hope you found this article helpful. If you are experiencing issues with your Amazon Seller Account and your Seller Account already received a warning or is under a review, I can assist you and help you resolve the matter.

In order to receive a professional advice and get help with your Amazon issue, feel free to subscribe and reach out through my dedicated assistance help page at www.onlyfans.com/kikaangelic, where I provide help with Amazon related matters in exchange for a small $24.99 fee.

If you have an Amazon-related issue, feel free to join and post into my large Amazon Seller Performance – Friendly Advice – Worldwide Facebook group, where you will be very welcome.

Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Additionally, here you can watch my YouTube video, where I am addressing everything you need to know about Seller Identity Verification and how to pass it:

Today, I want to shed some light on an important topic that can have a significant impact on our selling journey: the difference between FNSKU barcodes and manufacturer barcodes on Amazon. Understanding this distinction is crucial for ensuring smooth operations and compliance with Amazon’s requirements.

Let’s start with the basics. FNSKU stands for Fulfillment Network Stock Keeping Unit. It is a unique identifier assigned by Amazon to each individual product listing in their fulfillment network. When we send our products to Amazon’s warehouses, they require each item to be labeled with an FNSKU barcode.

On the other hand, manufacturer barcodes, such as UPC (Universal Product Code) or EAN (European Article Number), are the barcodes typically found on products when they are manufactured. These barcodes are assigned by the manufacturer to identify a specific product globally. They are used by retailers and marketplaces worldwide.

Now, you might be wondering why Amazon requires us to use FNSKU barcodes instead of manufacturer barcodes. The primary reason is to ensure accurate tracking and inventory management within Amazon’s vast fulfillment network. When we use FNSKU barcodes, Amazon can easily identify and track each unit of our product as it moves through their system. This allows for efficient inventory management, order fulfillment, and customer service.

Moreover, FNSKU barcodes help protect our listings from potential hijackers or counterfeiters. By using unique FNSKU labels, we can maintain control over our inventory and ensure that customers receive genuine products. This adds an extra layer of security and trust to our business operations.

So, how do we apply FNSKU labels to our products? When we create a new product listing on Amazon, we are provided with FNSKU codes that can be printed as labels and affixed to each unit. Alternatively, we can opt for Amazon’s FBA Label Service, where they apply the FNSKU labels for a fee. It is important to note that FNSKU labels should cover or replace any existing manufacturer barcodes to ensure accurate tracking within Amazon’s system.

Now that we understand the importance of FNSKU barcodes, let’s address a common question: What about products that already have manufacturer barcodes? In such cases, Amazon requires us to either cover the manufacturer barcode with an FNSKU label or have a unique product identifier (such as a UPC or EAN) registered under our Amazon account. By registering the unique product identifier, we can leverage the “Stickerless, Commingled Inventory” program, which allows Amazon to track and identify our units without the need for FNSKU labels. However, it is worth noting that using FNSKU labels provides better control and visibility over our inventory.

I hope you found this article helpful. If you are experiencing issues with your Amazon Seller Account and your Seller Account already received a warning or is under a review, I can assist you and help you resolve the matter.

In order to receive a professional advice and get help with your Amazon issue, feel free to subscribe and reach out through my dedicated assistance help page at www.onlyfans.com/kikaangelic, where I provide help with Amazon related matters in exchange for a small $24.99 fee.

If you have an Amazon-related issue, feel free to join and post into my large Amazon Seller Performance – Friendly Advice – Worldwide Facebook group, where you will be very welcome.

Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Additionally, here you can watch my YouTube video, where I am presenting you several secret tips about appealing Amazon Seller Account suspensions (don’t be confused by the opening of the video, where I am enjoying a vacation – it’s a part of the story):