UK VAT for Amazon, eBay & Etsy Sellers Based Overseas

Do Amazon sellers need to register for VAT in the UK?

An overseas Amazon seller doesn’t always need to register, but many should. HMRC treats you as an overseas seller if you sell goods stored in the UK to UK consumers through a marketplace and have no UK establishment. You then have three choices:

apply for exemption from registration, if every UK sale is to a consumer through a marketplace
register for VAT, which you must do in the situations listed below
register voluntarily, to reclaim import VAT on stock you bring into the UK

When must a marketplace seller register?

Even with an exemption, you must register if any of these apply:

the marketplace passes you a business customer’s VAT details
you sell goods located in Northern Ireland to a customer in Northern Ireland
your goods are in an EU country and your sales to customers in Northern Ireland are more than £70,000 a year
you make any UK taxable sale that is not through an online marketplace, such as from your own website

Does Amazon pay VAT for overseas sellers?

For sales to UK consumers, the marketplace is treated as the seller and accounts for the VAT. That applies to goods of any value already in the UK, and to goods of £135 or less shipped from abroad. For sales to VAT-registered business customers, the seller remains responsible and must be registered.

Who charges UK VAT on goods sold to UK consumers?

Where are the goods when you sell them?

Already in the UK

Sold through an online marketplace?

YesThe marketplace charges VAT

NoYou register and charge VAT

Outside the UK

Is the consignment £135 or less?

Yes, via a marketplaceThe marketplace charges VAT at checkout

Yes, sold directYou register and charge VAT at checkout

Over £135Import VAT at the border, paid by the importer

Marketplace
You
Border

Great Britain, sales to consumers. Business customers who give a UK VAT number account for the VAT themselves. Northern Ireland follows different rules.

Should I take the exemption?

	Apply for exemption	Register for VAT
Charge VAT on consumer sales	No, the marketplace does	No, the marketplace does
Reclaim import VAT on stock	No	Yes
VAT returns	None	Every period, even if nil
Sell to UK business customers	Must register first	Yes
Sell off-marketplace	Must register first	Yes

HMRC says not to apply for exemption if you want to recover import VAT on goods you import into the UK and sell through a marketplace. For most FBA sellers who import their own stock, that means registering is worth it.

Is Shopify responsible for UK VAT?

No. HMRC only treats a platform as an online marketplace if it sets the terms of sale, is involved in authorising payment, and is involved in ordering or delivery. Shopify provides the software for your own online shop; it doesn’t sell to your customers on your behalf. The VAT on sales through your Shopify store is your responsibility, so those are off-marketplace sales and you must register.

Can a marketplace remove me for VAT reasons?

Yes. Marketplaces must check the VAT numbers of overseas sellers, and can remove you if they know you should be registered but aren’t, or if your VAT number isn’t valid. HMRC can also tell a marketplace about non-compliant sellers. Register under the same business name you use on your seller account, so the marketplace can match it.

Common scenarios

“We sell on Amazon UK from China using FBA. What are our VAT obligations?”

Amazon accounts for the VAT on your sales to UK consumers. You import stock into UK fulfilment centres, so you pay import VAT at the border. Registering lets you reclaim it, often through postponed VAT accounting. If you also sell to businesses or through your own site, registration is compulsory.

“I’m a US Etsy seller shipping from the US.”

For orders of £135 or less, Etsy charges and accounts for the UK VAT at checkout, so you usually don’t need to register. Orders over £135 are imports, and your customer normally pays import VAT and any duty on delivery.

“We sell on eBay and on our own website.”

The website sales are UK taxable supplies with no marketplace involved, so you must register within 30 days of the first one. Your eBay consumer sales are still handled by eBay.

Selling through a marketplace? We’ll set it up properly.

We register you under the right name, give the marketplace a VAT number it can verify, and set up postponed VAT accounting on your imports.

Get in touch See fixed fees

Frequently asked questions

What is an overseas seller for VAT?

A business with no UK establishment that sells goods stored in the UK to UK consumers through an online marketplace. HMRC also treats businesses established outside the UK that import goods into Great Britain to sell to customers as overseas sellers.

Which address do I register with?

Your principal place of business, where the business is actually run. HMRC says it should not be a UK fulfilment centre or another third-party address.

Do I need an EORI number to sell on Amazon UK?

If you import your own stock into Great Britain, you normally need a GB EORI number for the customs declaration. See selling goods into the UK.

What if I have been selling for a year without registering?

If you should have been registered, HMRC registers you from the date you became liable and may charge a penalty. See late registration penalties.

UK VAT for overseas businesses (NETP)No threshold. Register within 30 days of your first UK sale.Selling goods into the UKThe £135 rule, import VAT and postponed VAT accounting.What counts as a UK establishmentA registered or virtual office alone does not count.Late registration penaltiesUp to 30% of the VAT due, or 0% if you tell HMRC first.VAT registration pricingFixed fees, published.

Sources

General information based on HMRC guidance as at 27 September 2026, not advice for your situation. Rules change and depend on your facts. Talk to us before acting.

UK VAT for overseas marketplace sellers