What is input VAT?

Import VAT

Import VAT is one type of input VAT.  This is the VAT that you paid for products or services.  For many Amazon sellers you will pay input VAT when you import goods into a country.  Often people will interchangeably call this import or input vat.  For example, you have £3000 of goods arriving into Felixstowe, UK from China.  This amount includes the freight cost from China and other fees.  You will pay 20% VAT on these goods. That is, unless you have deferred the VAT.

Typical types of Input VAT for Amazon sellers

Other forms of input vat are from products or services you have purchased.  If you purchased a printer and paid any VAT or for warehousing services and you have paid VAT. Pay close attention to your invoices from Amazon to see if you have veen paying any VAT on different fees.

Why is it important to know about input VAT?

It is important to keep a record of all input VAT because you can claim it back!  Without claiming it back, you are losing money and cutting your profits.

What happens if I forget to claim back the input VAT?

You can claim back any input VAT for up to four years after the date of the invoice.  In case you left out some vat claims, you still have time to claim it back.

What about VAT paid in other Pan European countries?

You will need to claim back the VAT for products and services in the respective country.  For example, if you import goods into Germany to sell in the EU, you will pay VAT on the import and you can claim it back on your monthly German VAT return.

Now that you know a little more about Input VAT, don’t forget to include it when calculating your VAT return with PanEuroVat.  When you are logged into your account you will see the two boxes to put in your input and import VAT amounts to make sure you get your refund.