Part of our complete guide to ecommerce seller tax.
Why FBA is a different VAT conversation
Most online sellers only need to think about the standard £90,000 UK VAT threshold. Amazon FBA (Fulfilled by Amazon) sellers face an extra layer, because Amazon can store your stock in warehouses across different countries to speed up delivery, and that physical storage can create tax obligations independent of your UK turnover.
The UK threshold still applies first
Regardless of FBA specifics, the core £90,000 rolling 12-month UK threshold still governs when UK VAT registration becomes compulsory. Nothing about FBA changes this baseline rule.
Where FBA adds complexity
- Storing stock abroad. If Amazon stores your inventory in an overseas warehouse, including within the EU, that physical presence can trigger a local VAT registration requirement in that country, separate from your UK position
- Selling into the EU. If you sell to EU consumers, the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes exist to simplify EU VAT reporting, but only apply if that market is relevant to you
- Marketplace facilitator rules. In some scenarios, Amazon itself collects and remits VAT on certain sales on your behalf, but this doesn't automatically remove all your own registration and reporting obligations, check your actual marketplace settings rather than assuming
Key point: "Where is my stock physically stored" is often a more important question for FBA sellers than "where are my customers," overseas storage alone can create a filing obligation even before overseas sales volume gets large.
What to actually do
Check your Amazon seller dashboard for exactly which fulfilment centres your stock is stored in, and whether Amazon's EU programmes (like Pan-European FBA) apply to your account, these settings materially change your VAT exposure. If you're selling meaningfully into the EU or have stock stored overseas, this is worth a proper review rather than guesswork.
Selling through Amazon FBA? Book a free consultation and we'll map out your actual VAT obligations across every country your stock touches, see our ecommerce sellers service.
Frequently asked questions
Does Amazon FBA change when I need to register for VAT?
The core £90,000 UK threshold still applies, but FBA sellers storing stock abroad, or selling into the EU, can trigger separate VAT obligations in other countries regardless of their UK turnover.
What is OSS/IOSS and does it apply to me?
The One Stop Shop and Import One Stop Shop are EU VAT simplification schemes for sellers shipping to EU consumers. They may apply if you sell into the EU, but are a separate question from UK registration, and only relevant if you have that market.
Does Amazon collect VAT on my behalf?
In some marketplace-facilitator scenarios Amazon handles VAT collection and remittance for certain sales, but this doesn't remove your own registration and reporting obligations where they apply, check your specific marketplace settings rather than assuming you're covered.
Does storing stock in an overseas Amazon warehouse create a tax obligation there?
Potentially yes, having stock physically stored in another country can trigger a local VAT registration requirement in that country, separate from your UK position, this is a genuinely complex area worth getting specific advice on.