NETP VAT registration and returns

Amazon Seller UK VAT FAQs

1. How can I check the UK national EORI number and VAT number?

EORI number
EU VAT number

2. Do I need to set up a company in the UK?

No, if you are only selling products through UK Amazon website and have no other business activities. Yes, if you want to set up a company to dispatch goods from your own warehouse. Please note: Local British companies only need to register for VAT if their sales amount is over £85,000(2016/17: £83,000); however, as a foreign company or individual you will need to apply for VAT once you start selling products in the UK, the application process and required documents will be different too.

You can find more information on how to set up a limited company in the UK here.

3. Can I use the UK VAT Number in other EU countries?

If you dispatch products from the UK within certain limit, you don’t need to register for an EU Tax Number. Please see the threshold below:

Country Threshold
France 35,000 EUR
Germany 100,000 EUR
Italy 35,000 EUR
Spain 35,000 EUR
United Kingdom 70,000 GBP

If the sales amount is over the threshold, you must apply for a local VAT number in the EU country.

4. If my products are not in the UK, but in the FBA warehouse of France, Italy or Germany, can I use the Distance Selling Rules above?

No, if you have warehouses in other EU countries, you must apply for a local Tax Number.

Should I use EFN or Pan?

EFN (European Fulfilment Network) – even your products are stored at a fulfilment warehouse in a certain country, you can still sell them through other channels. For example, your products are stored at UK FBA warehouse, you can sell them on as well.

Pan (Pan-EU Amazon program) – your products are stored at 7 FBA warehouses in Europe, this means you will need to apply for Tax Number in these 7 countries.

Each country’s VAT application and returns process are different. For example, you need to declare 13 times a year in Germany, 4 times a year in Italy. In France and Spain, it will depend on the sales amount. Therefore, if your sales amount in Europe is less than distance selling thresholds, we suggest you to use EFN program, it is also the cheapest way to register for VAT and make returns in the UK compare to the other countries.

VAT Rate in Different Countries:

Country VAT rate
France 20%
Germany 19%
Italy 22%
Spain 21%
United Kingdom 20%

5. I have registered for a UK VAT number, which items can be tax deductible?

  • Import VAT: You must use your own company’s VAT Number to import, so you can apply for tax deduction. You can’t use shipping agent’s Tax Number to apply tax deduction.
  • Amazon Fees: Once you have registered for VAT, Amazon will not charge you VAT any more. This is because Amazon is an EU registered company, who can not charge you EU VAT on a UK tax registered company.
  • Other Costs in the UK: For example, if you bought a notebook for the company and you used logistics, business consultation, raw material purchasing etc. The receipt used for tax deduction must contain the company’s name and UK Tax Number, must be titled to your company and for commercial purpose.

  • Disclaimer:

    The above information and calculations are for illustrative purposes only. No liability is accepted by O’Brien S & Co Ltd for any actions or losses from investment in reliance on the information and calculations. Consult a qualified professional financial advisor before making any financial decisions. O’Brien S & Co Ltd holds the copyrights in all materials on the website. All rights reserved.

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