UK VAT Registration for Cross-Border Sellers: Thresholds, Process and FBA Requirements
Updated 2026-08-17
Split the rule: UK-established businesses use the £90,000 taxable-turnover threshold (rolling 12 months, from April 2024). Non-UK businesses that store goods in the UK (including Amazon FBA) generally must register from the first UK-connected supply — do not quote a £100,000 distance-selling figure as their threshold, and do not mix that with the domestic £90,000 test. HMRC online registration is free. Standard rate 20%; some goods use 5%. Registration often takes 2–6 weeks. Since Brexit, a UK VAT number does not cover EU sales (and EU OSS does not cover the UK). A UK tax agent is optional.
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Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
Do I need UK VAT registration for Amazon FBA?+
Yes. If you store inventory in the UK via Amazon FBA (or any other fulfilment method), you must register for UK VAT regardless of your sales volume. Amazon.co.uk requires a valid UK VAT registration number before allowing FBA listings. Amazon also verifies your EORI number for import purposes. Since January 2021, Amazon is required to collect and remit VAT on behalf of third-party sellers for certain sales (online marketplace liability), but you still need your own VAT registration if you hold stock in the UK.
What is the UK VAT registration threshold for non-UK sellers?+
Unlike UK-based businesses (which have a £90,000 turnover threshold from April 2024), non-UK businesses have NO registration threshold. You must register for UK VAT from the first pound of UK-connected revenue if you: hold inventory in the UK, make taxable supplies in the UK, or import goods into the UK. The £100,000 threshold applies only to non-established taxable persons (NETPs) for distance sales where neither the goods nor the seller are in the UK. However, if you store goods in UK warehouses (including FBA), you must register immediately.
What are the UK VAT rates and what does the reduced rate cover?+
The standard rate is 20%. The reduced rate of 5% applies to: children's car seats and safety equipment, domestic fuel and power (gas, electricity), sanitary protection products, certain renovation and alteration work on residential properties, and some energy-saving materials. Zero-rated items (0% VAT) include: most food (not catering/hot food), children's clothing, books and newspapers, public transport, and certain medical supplies. Digital goods and electronics are always at 20%.
How long does UK VAT registration take for non-UK sellers?+
HMRC processing times for non-UK sellers are typically 2-6 weeks if you apply online. However, during peak periods (e.g., before Q4 selling season), it can take up to 12 weeks. You'll need to provide: a valid passport or ID, certificate of incorporation (for companies), proof of business activity (e.g., Amazon seller account, website), bank details, and a description of goods you plan to sell. If HMRC has questions, they may request additional documentation, which extends the timeline. Many sellers use a UK tax agent to speed up the process.
What happens if I don't register for UK VAT when required?+
HMRC can impose significant penalties: (1) failure to register — penalty up to 100% of the unpaid VAT from the date you should have registered; (2) late registration — penalty of 5-15% of the VAT due, depending on how late the registration is; (3) Amazon will suspend your UK listings if you cannot provide a valid VAT number; (4) HMRC can issue a 'notice of requirement' making you personally liable for unpaid VAT; (5) in severe cases, criminal prosecution for tax evasion. HMRC has been actively enforcing VAT compliance for cross-border sellers since 2021, with powers to hold online marketplaces jointly liable.
After you register, paying the tax bill often needs a local account. Seehow non-resident sellers pay VAT/GSTin the filing guide.
Continue checking
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