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E-commerce · VAT · Multi-channel

How does VAT work if I sell on Amazon and Shopify?

By Accounting Solution · September 2026 · 3 min read

You must register for UK VAT once your taxable turnover passes £90,000, but Amazon and eBay already collect and remit VAT on your behalf for some sales under marketplace facilitator rules — which doesn't exempt you from registering, it just changes what you're responsible for reporting.

Shopify, by contrast, doesn't do this for you, since it's your own storefront rather than a marketplace, so VAT on those sales is entirely down to you to charge, collect and report correctly. Selling across both at once is where it gets genuinely complicated: you need a single, reconciled view of turnover across every channel to know if you've crossed the threshold, and separate treatment of Amazon's facilitator-collected VAT versus your own Shopify VAT so you don't double-count or miss it. If you're selling across more than one platform and aren't confident your VAT position is correct, that's worth checking now rather than at your next VAT return.

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Frequently Asked Questions

How does VAT work if I sell on Amazon and Shopify?

You must register for UK VAT once your taxable turnover passes £90,000, but Amazon and eBay already collect and remit VAT on your behalf for some sales under marketplace facilitator rules — which doesn't exempt you from registering, it just changes what you're responsible for reporting.