How we cut a Manchester e-commerce brand's VAT bill by 22%
A fast-growing online retailer was overpaying VAT across multiple channels. We restructured their VAT scheme and reclaimed overpaid input tax.
Results
- 22% reduction in annual VAT liability
- £18,400 of overpaid input VAT reclaimed
- Multi-channel sales reconciled and Making Tax Digital ready
The challenge
The client was selling across their own website, Amazon and eBay, with VAT handled inconsistently across channels. Input VAT on fees and shipping was being missed, and they were unsure whether the Flat Rate Scheme still suited them.
What we did
We reviewed twelve months of multi-channel sales, moved them off the Flat Rate Scheme to standard VAT accounting, and built a reconciliation process that captured input VAT on every marketplace fee.
The result
Within one quarter the client's effective VAT rate fell by 22%, and we reclaimed £18,400 of previously missed input VAT. Their books are now Making Tax Digital ready, with VAT returns filed automatically each quarter.
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