Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 14 Jun 2021 11:33:25 GMT by Evexx XX
Hi! Please advise. Reffering to The Margin and Global Accounting Scheme (VAT Notice 718), what in case if this is Dropshipping? I am not the owner of the imported product, I am only the agent between the buyer and seller. Let's say that my LTD company is selling products from Alliexpress on my Internet shop. The customers are only from Poland. The products are shipped directly from China to the customer. So I am the sales agent. According to: FRS 105 Section 18 paragrafph18.4 "A micro-entity shall include in revenue only the gross inflows of economic benefits received and receivable by the micro-entity on its own account. A micro-entity shall exclude from revenue all amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes. In an agency relationship, a micro-entity (the agent) shall include in revenue only the amount of its commission. The amounts collected on behalf of the principal are not revenue of the micro-entity" FRS 102 Section 23 paragraph 23.4 "An entity shall include in revenue only the gross inflows of economic benefits received and receivable by the entity on its own account. An entity shall exclude from revenue all amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes. In an agency relationship, an entity (the agent) shall include in revenue only the amount of its commission. The amounts collected on behalf of the principal are not revenue of the entity." Even in this case I need to get invoices from Chinese seller and issue invoice for the customer? Many thanks.
Posted Thu, 17 Jun 2021 13:25:43 GMT by HMRC Admin 9
Hi, 

Please contact the VAT Helpline to speak to an advisor.  

VAT: general enquiries

Thank you. 

You must be signed in to post in this forum.