The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> Welcome to The Book-keepers Forum! -> VAT on Kindle Direct Publishing royalties
Post Info TOPIC: VAT on Kindle Direct Publishing royalties
AMajor


Veteran Member

Status: Offline
Posts: 41
Date:
VAT on Kindle Direct Publishing royalties
Permalink  

Hi there,

I have a customer who's been paid royalties from Amazon for sales on Kindle Direct Publishing. Does anyone know if VAT should be applied?

Thanks

Angie



__________________
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink  

Hi Angie
VAT on royalties has seen announced recently especially on kindle books etc. You will actually get a full invoice/statement from Amazon as you do from other publishers/lending libraries etc. Many, if not all companies who deal in royalties use self billing but care some will need confirmation of VAT registration of your client before they issue VAT statements. That said Amazon made an announcement recently - see here kdp.amazon.com/help

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
AMajor


Veteran Member

Status: Offline
Posts: 41
Date:
Permalink  

Hi Joanne

I went to an ICB Branch meeting recently where this was mentioned just couldn't find the right reference to it, so thanks for sending the link.

I've asked him to get a vat invoice/statement from Amazon.

I saw this on the EU pricing page:

"VAT varies by country. Consider a book with a £6.00 VAT-inclusive list price on Amazon.co.uk, for sales to customers in the UK we would apply the UKs 20% VAT rate and the price we use to calculate royalty would be £5.00."

So if they use the net amount of £5 to calculate royalty payment - should the royalty payment have vat on it?

__________________
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink  

Hi Angie
Sorry been off the site for a while.

Im not sure if the Kindle royalty payment itself as VAT on it. Ive not got any with kindle only (non iSBN numbered) books so not had the chance to have a dig. I know the ALCS (Authors' Licensening & Collecting Society() payments do, but if I recall correctly PLR (Public Lending Library) payments dont, plus any hardback/paperback and electronically linked books do. If it was me I would do one of three things - wait for the paperwork from Amazon to arrive as they will make it very clear (as long as they have your VAT number anyway); send them an email via your clients Amazon login account and ring the VAT office.

Sorry I cant be of any further help and havent got time to go and have a prod round as Im bombed!

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Page 1 of 1  sorted by
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> Welcome to The Book-keepers Forum! -> VAT on Kindle Direct Publishing royalties
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About