Running an ecommerce business can look simple from the outside. A customer places an order, the marketplace collects the money, the product is shipped and a payment eventually reaches your bank account. But from an accounting perspective, that bank payment…
If you sell goods through Amazon, eBay, Etsy, Vinted or another online marketplace, there is an important change you need to understand. Since 1 January 2024, new digital-platform reporting rules have required relevant platforms to collect information about sellers and…
A VAT-registered ecommerce business was facing a VAT shortfall of approximately £50,000 after years of recording Amazon and eBay marketplace payouts as its sales figure. The approach seemed logical. Money came into the bank account from Amazon and eBay, so…
Category: Client StoriesTopic: eCommerce VAT / VAT ComplianceAuthor: Muhammad HarisReading time: 5–6 minutes Introduction A client came to us earlier this year with a serious VAT problem. They had underpaid approximately £118,000 in VAT. It wasn’t fraud. It wasn’t deliberate.…