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Post Info TOPIC: VAT on Kindle Direct Publishing royalties
AMajor


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VAT on Kindle Direct Publishing royalties
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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



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Cheshire


Master Book-keeper

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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

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 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

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Posts: 41
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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?

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Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
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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
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