SellerAmp SAS: VAT on Fees - Amazon vs. Tax Authority

Why is VAT on Fees shown twice in the Profit Calculator?

VAT on Fees appears twice in the Profit Calculator to represent two different parts of the profit calculation.
SellerAmp Profit Calculator highlighting where VAT and VAT on Fees interact
  1. What Amazon will charge you: VAT on Fees in the Profit calculation represents the actual VAT that Amazon will deduct from you to cover the VAT on their fees; so this amount will go to Amazon
  2. What you pay your tax authority: The "VAT Due" in your profit calculation represents what you owe your local tax authority. For a UK VAT-registered seller, this means you'd owe £5.83 in VAT on the sale price. However, since you can reclaim £3.17 (VAT on cost) and £1.72 (VAT on Amazon fees), your net VAT obligation to the taxman is only £0.95. This final amount is factored into your overall profit.
The VAT on Fees section above VAT Due is a positive number because it's what you can claim back from the government.

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