I have an Australian registered company and have signed up for Amazon Australia with my Australian company details. I’ve also enabled the UK marketplace through the “Sell Globally” option.
My questions are:
Is it possible to sell on Amazon UK with an Australian company?
How will taxes be calculated in my case? I’ve entered my Australian GST number in the VAT settings for both the Australian and UK marketplaces, and it has been accepted by both.
Once I reach the VAT threshold in the UK, will I need to register for VAT there?
My main focus is to sell in the UK, so any tips or advice would be greatly appreciated!
If you want to sell in the UK by storing products there, you need to be VAT-registered in the UK from day one, as you are not a UK resident.
You mentioned that you want to focus on the UK marketplace. (By the way, Australia is a less lucrative marketplace for OA and WS compared to the USA, UK, and Germany.) I would recommend setting up an LTD, registering for VAT, and proceeding in this way. This will enable you to do OA and WS effectively.
Yes, you can sell on Amazon UK with an Australian-registered company through the Sell Globally option, but there are tax obligations to consider. Since you’ve entered your Australian GST number, Amazon will not charge GST on your UK sales, but once you reach the UK VAT threshold (£90,000 in a 12-month period), you must register for VAT in the UK. Even before reaching the threshold, it might be beneficial to register voluntarily to reclaim VAT on business expenses. If you store inventory in the UK (e.g., using FBA), you may need VAT registration immediately, regardless of sales volume. To streamline compliance, consider using services like AVASK or SimplyVAT for VAT registration and filings. Since the UK has marketplace tax collection rules, Amazon may collect and remit VAT on your behalf in some cases, but it’s best to confirm your specific obligations with a tax professional.