Amazon Seller and FBA Fees

Hi Amazon changed their VAT base from Luxembourg to UK so all fees invoiced since 01/08/2024 are now invoiced with 20% UK VAT. I feel it is correct that Amazon's invoices are recorded correctly so the VAT claimed on our VAT return agrees to their invoices. Amazon do not itemise the fees on their invoices so you cannot understand/reconcile the invoice to the individual sales transaction they relate. Their fee invoices may related to several hundred if not thousand of individual sales. Amazon collect their fees from each individual sales transaction individually (rather that collecting their total invoice value). As such, the so there is no way to match the payments taken to their invoices. I understand the cash collection timing is up to four weeks different to the invoice dates so there is always a discrepancy on our purchase ledger which cannot be reconciled. Also, VAT law requires all VAT invoices to be paid in order to be reclaimed but it is impossible to verify exactly when Amazon took the money. I could not for example be able to show when an Amazon invoice was actually paid. What is HMRC's stance on this? It seems the cash settlement and accruing of liability rules are in conflict. Would HMRC permit that Amazon's fees are recorded and VAT reclaimed based on the payment date as this appears to be the only report available from Amazon that is reconcilable? I have spoken to several software providers and they all appear to automate the transaction fees but as soon as I ask how to reconcile these to Amazon invoices they draw a blank so many companies must be in breach. What is HMRC's take on the situation? How would a HMRC VAT auditor assess the situation during VAT inspection? Thank you

Hi.
You would need to write to us, as this would need the contribution of officers in the compliance team to confirm whether the records you have available are acceptable for treating this VAT as your input tax.
VAT: general enquiries
Thank you.