UK VAT question
Is anyone know that if a seller need to pay the VAT tax when selling on Amazon.UK ?
Or if the annual turnover is lower than 230000 pounds, no need to pay the 20% VAT tax ?
0 replies
Seller_qZO3ZCjoBXEeL
The threshold for UK based businesses is £85,000. The threshold for overseas businesses selling to the UK is £70,000.
If you store stock in the UK (FBA, drop-shipping or similar) and you are based overseas then the registration threshold is £0 and you must be registered for VAT before you make you first sale.
Wherever you are in the World if your (UK) turnover is is anywhere near £230,000/year and you are not registered for VAT then you probably owe HMRC a lot of money - possibly as much as £25,000 or more.
Seller_saK5Ah2SaNYjL
You should have been fully UK VAT registered BEFORE sending stock to UK warehouses. What you have done may have serious consequences.
When they notice, and I am surprised they haven’t already, you will find your account suspended and stock confiscated.
Seller_5qF3q2NBYHw1W
It depends a little bit on where you are based. (i had to register right away, no threshold for my location)
https://www.gov.uk/vat-registration-thresholds
Here is all the information in one place.
You will just jump into another VAT category or something above 230.000 pounds, i registered right away, there is no escaping VAT (or should not be)
