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Selling online opens your business to a global audience, but it also exposes you to a complex VAT landscape. The rules for UK eCommerce sellers depend on where your customers are based, where your stock is held, and whether you sell through your own website or a platform like Amazon, eBay or Etsy.
Getting this right is essential. A single VAT oversight can lead to lost margins, penalties, or even duplicate payments. This guide explains how VAT applies to UK online sellers, how marketplace rules affect responsibility, and what you can do to stay compliant while maximising profitability.
If your UK sales exceed £90,000 in a rolling 12-month period, VAT registration is compulsory. However, many sellers register earlier to reclaim VAT on stock, packaging, and digital tools.