A Brief Guide on VAT for UK Sellers

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A Brief Guide on VAT for UK Sellers


If you’re an Amazon seller doing business in the UK, you’ve probably noticed a number of VAT changes in the last few months.


The 2021 E-commerce VAT Package, which went into effect in July, altered the goalposts in a few different ways. 


We’ll go through what you need to know about VAT, registration, information required to register for VAT, and form filings. Let’s learn:


Registering VAT


The location (and timing) of your VAT registration should be part of your entire market entry plan. You must be VAT compliant once you have goods in a country, so make sure to arrange your registrations correctly.


We propose that you start by enrolling in one of the following countries:


Start with your own nation if you live in a UK country. This will allow you to start trading at home without having to learn about the tax procedures of a new country.


The United Kingdom is usually the greatest option for English-speaking sellers. This is due to the fact that VAT registrations and returns are completed in the local language, and VAT returns can be filed every three months in the United Kingdom.


Information Required to Register for VAT


To register for VAT in the United Kingdom, you’ll need the following documents and information:


Your unique taxpayer reference is your national insurance number, sometimes known as a “tax identification.”


Details of your incorporation can be found on your certificate of incorporation.


Information about all related firms from the previous two years.


Information about your business’s bank account.


If you’ve purchased this company, you’ll need information about the company that has been transferred.


To register in the UK, you’ll also need a login for HMRC’s online services. Different countries’ rules may differ slightly from those of the United Kingdom.


Visit your country’s tax department for further information on what information is needed to register.


VAT Registration and Form Filings 


Let’s check on the pros and cons associated with registration of VAT and also form filing:




Being VAT registered can give a smaller firm the appearance of being larger and more established, allowing larger organizations to take you seriously.


You don’t have to worry about going over the registration threshold once you’ve registered for VAT in a jurisdiction. Instead of focusing on tax minimization, you may concentrate on building your firm.


On tax-deductible expenses, you can recover back the VAT you paid.


VAT, if structured correctly, can aid with cash flow (you hold onto VAT collected for a few months before paying it to the government).




You must file returns on a regular basis once you have registered for VAT.


To help you manage your VAT filings, you might use apps like Quaderno or hire an accountant. This creates a recurring cost for your company.


There are penalty penalties and interest if you try to do it yourself and make a mistake (or pay your bill late).


Being VAT compliant adds to the complexity of your business and adds another duty to manage.



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