Key facts
- Amazon collects UK VAT on behalf of overseas sellers for consignments £135 or less.
- If you use FBA and store stock in the UK, you must register for UK VAT regardless of turnover.
- Amazon’s Pan-European FBA programme moves stock between countries, creating VAT obligations.
- Keep records of which sales Amazon collects VAT on vs. sales where you’re responsible.
UK-Based Amazon Sellers
If you’re a UK-based seller on Amazon, standard VAT rules apply:[3]
- Register for VAT when taxable turnover exceeds £90,000
- You are responsible for charging and accounting for VAT on all your sales
- Amazon does not collect VAT on your behalf (you’re a UK seller)
Fulfilment by Amazon (FBA)
If you use FBA, Amazon stores and ships your products. Key VAT considerations:
- Stock stored in UK FBA warehouses creates a UK VAT obligation
- If Amazon moves your stock to other EU countries (Pan-European FBA), you may need to register for VAT in those countries too
- Movement of your own goods between countries is a deemed supply and may trigger VAT obligations
When Amazon Collects VAT
Amazon must collect and remit UK VAT when:[1]
- An overseas seller sells goods in the UK with a consignment value of £135 or less
- An overseas seller sells goods already located in the UK to UK customers
In these cases, Amazon is the “deemed supplier” and handles VAT. You still need to keep records.
Tip: Download Amazon’s VAT Transaction Report regularly. It shows which sales Amazon collected VAT on and which are your responsibility.
Frequently Asked Questions
Do I need to register for VAT if I sell on Amazon UK?
As a UK-based seller, you must register for VAT when your taxable turnover exceeds £90,000. If you use FBA and store stock in the UK as an overseas seller, you must register regardless of turnover.
Does Amazon collect VAT on my behalf?
Amazon collects UK VAT on behalf of overseas sellers for consignments valued at £135 or less, or for goods already in the UK sold by overseas sellers. UK-based sellers are responsible for their own VAT.
What VAT issues does Pan-European FBA create?
Pan-European FBA moves your stock between countries, which can create VAT registration obligations in those countries. The movement of your own goods between countries is treated as a deemed supply for VAT purposes.
How do I track VAT on Amazon sales?
Download Amazon’s VAT Transaction Report regularly. It shows which sales Amazon collected VAT on as the deemed supplier and which sales are your responsibility to account for.
Further Reading
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