Amazon UK VAT: what US sellers need to know
Any US seller shipping to the UK or storing inventory in a UK FBA warehouse must register for UK VAT with HMRC before selling. UK VAT is 20% standard rate. Amazon collects and remits VAT on your behalf for many transactions (MFR rules), but registration and periodic filings remain the seller's responsibility.
When registration is required
You store inventory in a UK FBA warehouse, OR you sell over the UK distance-selling threshold from outside the UK. In practice, any FBA-UK seller registers on day one.
Amazon's MFR (Marketplace Facilitator) role
Amazon collects and remits UK VAT on many B2C transactions to non-VAT-registered UK buyers. Sellers still remit VAT on B2B sales, on some cross-border sales, and on their own imports.
Filing cadence
Quarterly VAT returns to HMRC. Making Tax Digital compliance required. Most sellers use a specialist accountant or a service like Avalara / SimplyVAT for £1,500 to £4,000/year.
Frequently asked questions
Do I need a UK company?
No. US LLCs can register for UK VAT as a non-established taxable person.
How long does UK VAT registration take?
2 to 8 weeks. Longer if HMRC asks for supporting documentation.
Is UK VAT the same as EU VAT?
Post-Brexit, no. UK VAT is HMRC only. EU VAT requires separate registrations per country.
Does Nova handle VAT?
Nova does not file VAT. Nova reports SKU-level revenue and fees; VAT filing stays with your accountant or VAT service.
See this in Nova
Nova surfaces this metric per SKU in near real time so you can act before your next monthly close catches it.
Try Nova free for 14 daysRelated questions
Should I expand to Amazon EU?
Amazon EU is worth expanding into once you have a stable, profitable US business (100+ orders/day per SKU) and 6+ months of forecastable demand. EU adds five marketplaces (UK, DE, FR, IT, ES) but introduces VAT registration, EPR obligations, EU Responsible Person, and labelling requirements that take 2 to 4 months to set up correctly.
Pan-EU FBA vs EFN: which should I use?
Pan-EU FBA lets Amazon distribute inventory across EU fulfilment centres for lower fees and faster delivery, but requires VAT registration in every country Amazon stores inventory (typically DE, FR, IT, ES, PL, CZ). EFN (European Fulfilment Network) keeps inventory in one country and ships cross-border with higher fees but only one VAT registration.
Which Amazon marketplaces does Nova support?
Nova supports all 21 Amazon marketplaces: US, Canada, Mexico, Brazil, UK, Germany, France, Italy, Spain, Netherlands, Sweden, Poland, Belgium, Turkey, UAE, Saudi Arabia, Egypt, India, Japan, Australia, and Singapore. SKU-level profit, PPC, inventory, and reporting work identically across each marketplace once connected via SP-API.
How do Amazon currency conversion fees work?
When you sell in a non-USD marketplace and disburse to a USD bank account, Amazon converts currency at its own rate, which is roughly 2% to 3% worse than the mid-market rate. Alternatives like Wise, Payoneer, or WorldFirst multi-currency accounts typically save 1% to 2% per payout by letting you disburse in local currency and convert separately.
How does Amazon Remote Fulfillment with FBA work?
Remote Fulfillment with FBA lets US sellers fulfil orders in Canada, Mexico, and Brazil directly from their US FBA inventory. Amazon handles cross-border shipping, customs, and delivery. It skips local warehouse setup but adds a per-order fee that raises unit cost by 5% to 15%.