Not sure whether Amazon, eBay or Etsy is collecting your VAT — or whether you should be? Book a quick call and get a clear answer for your setup.
Selling on a marketplace makes life easier in almost every way except one: VAT. The big platforms — Amazon, eBay, Etsy and Shopify — each handle VAT slightly differently, and whether the marketplace collects the VAT or you do depends on where your stock is held, where your business is established, and the value of the goods.
This guide explains who is responsible for VAT on each platform, how the "deemed supplier" rules work, how VAT applies to your seller fees, and the mistakes that most often trip sellers up. Get this right and your margins, your pricing and your peace of mind all benefit.
If you are a UK-established business, VAT registration becomes compulsory once your taxable turnover exceeds £90,000 in any rolling 12-month period. Many sellers register voluntarily before that point to reclaim VAT on stock, packaging and software.