Reverse Charge VAT for online marketplace

I am VAT Reg. I sell on on a couple of sites such as etsy. 1. They charged me Processing fee, Listing fee, Regulatory Operating fee, Marketing fee. Do I record it as expense zero-rated or as expense with Reverse Charge ? 2. When I receive an international sale, a sales tax is collected by etsy on my behalf and it shows 'Sales tax paid by buyer (Remitted)' Do I record sales tax as gross income? and then as an expense zero-rated or as expense with Reverse Charge ? Thank you

Hi,
If the marketplace charge you those fees and they are based overseas then the transaction will be subject to the reverse charge by yourself.
Please see the guidance below:
Reverse charge
As regards the sales made,are you making sales of goods or services ?
If they are sales of goods are the goods being sold in to the EU below £135?
Thank you.

HI Admin, Thank you for your quick respond. 1. Sales of goods 2. Some from UK to the EU below £135, some from UK to the USA, Norway, Australia. etsy collected the sales tax on my behalf and shows it as 'Sales tax paid by buyer (Remitted)'. They recorded the whole sales amount (including those taxes) as "Income" and immediately deducted that taxes from the sales amount. Just want to know how to record that taxes ? as an expense zero-rated or as expense with Reverse Charge ? Thank you

Hi,

As these supplies are exports and the marketplace is responsible for the collections of the overseas taxes then you would treat it as a zero rated export so you put the net figure of the sale in box 6 of your VAT return.

Thank you.

if you are using accounting software then you could download the ETSY or Ebay or Amazon VAT report and simply upload amended CSV into your accounting software, however, do not get confused with payment made from ebay to your bank account, you should consult with your accountant on how to setup that, but in regards to the sales or fees transactions this is how you could treat these! Etsy Marketing -- Etsy Ads -- REVERSE CHARGE -£0.20 Etsy Fee -- Listing fee ($0.20 USD) -- REVERSE CHARGE -£0.16 Etsy Sale -- Payment for Order #xxxxxxxxxx -- Zero Rated £xx.xx - this is not the total but the amount without ''SALES TAX PAID BY CUSTOMER'' if item is sold outside UK and Etsy collected tax. e.g. you sold item for £20 then etsy will show amount of tax paid by customer in USA, e.g. £1 so for tax purpose you will only use £20 ZERO rated where its sold outside UK/EU/USA etc. But if item sold in UK and you are vat registered then full amount must be declared e.g. £20 Retail price including 20% UK vat. Etsy Sale -- Payment for Order #xxxxxxxxxx -- VAT 20% £xx.xx ---- same method of tax indentification apply if selling on ebay or amazon, download the tax reports and see what item has 20% vat or what transaction should be treated as '' Reverse charge '', ebay fees are mostly 20%vat, amazon seller fees are Reverse charge, except Amazon ads will have 20% vat on their invoices! Everything is visible on the respective VAT reports. I hope this info helps.