New (UK-based) Amazon FBA seller with a basic question about VAT

Hi all,

I’m hoping you might be able to help – and I’m prefixing this by saying this is likely to be a stupid question!

Our UK-based business has ventured onto Amazon for the first time ever. We’re selling a product that we manufacture, and in our first three weeks have been pleasantly surprised by the number of sales we have had!

Now, I’m trying to get to grips with the seller back-end, and I can see that Amazon are due to give us our first ‘scheduled payout’ at the end of this month.

My question is, will this payout include VAT, or will it be a net payment, less VAT?

I suspect that it will include VAT, and we would in turn need to pay it on to HMRC, but I can’t explicitly see anywhere that says this clearly.

On the other hand I read a comment on another forum that stated Amazon holds the VAT and pays out the money to the seller, less VAT (which I find highly unlikely).

Could someone please kindly clarify?

Many thanks in advance!