If you are a UK-established seller, you are responsible for VAT on sales through Amazon, eBay and your Shopify store alike. You must register once combined taxable turnover across all channels passes £90,000. Marketplaces only account for the VAT themselves on sales by overseas sellers and on low-value imports.
The £90,000 VAT registration threshold is tested on your total taxable turnover, not per platform. Sales on Amazon, eBay, Etsy, your own Shopify store and anything you sell face to face are added together. Turnover means sales excluding VAT, and it includes zero-rated sales such as most children's clothing.
There are two tests. You must register if your taxable turnover for the last 12 months (a rolling total, not the tax year) goes over £90,000, or if you expect to go over it in the next 30 days alone.
This is the part that is often misstated. The marketplace does not take over VAT for a UK-established seller who ships from UK stock. You remain the person who must register, charge VAT and report it on your VAT return, whether the sale happened on Amazon or on Shopify.
Marketplaces become responsible for the VAT (they are treated as the seller for VAT purposes) in two situations only: goods sold from stock held in the UK by a seller established outside the UK, and imported consignments worth £135 or less sold to UK customers. They also have to check sellers' VAT numbers and can be made jointly liable for unpaid VAT of overseas sellers.
| Situation | Who accounts for the UK VAT |
|---|---|
| UK seller, stock in UK, sold on Amazon or eBay | You |
| UK seller, sold on your own Shopify store | You |
| Overseas seller, stock in UK, sold on a marketplace | The marketplace |
| Import consignment £135 or less sold to a UK customer via a marketplace | The marketplace |
Sources: GOV.UK: VAT and overseas goods sold using online marketplaces, GOV.UK: when to register for VAT.
We reconcile VAT across Amazon, Shopify, Etsy and eBay for Brighton sellers, so nothing gets double-counted or missed.
Talk to an AccountantIf you are a UK-established seller, you are responsible for VAT on sales through Amazon, eBay and your Shopify store alike. You must register once combined taxable turnover across all channels passes £90,000. Marketplaces only account for the VAT themselves on sales by overseas sellers and on low-value imports.
No. Amazon and eBay account for UK VAT themselves only on sales by sellers established outside the UK and on low-value imports. A UK-established seller registers, charges and reports VAT on their own VAT return.
Yes. HMRC looks at your total taxable turnover across every channel, including eBay, Etsy and direct sales. Each channel can be under £90,000 while the combined total means you must register.
You must notify HMRC within 30 days of the end of the month in which you passed the threshold. Your registration then takes effect from the first day of the second month after you went over, unless you choose an earlier date.