Shopify & Amazon VAT Registration: UK Seller Guide

For a UK-established online business, the standard compulsory VAT registration tests look at taxable turnover across the business, not at each shop separately. Shopify sales, Amazon sales and other taxable activities may need to be combined.

The two turnover tests

Registration is normally required if taxable turnover exceeds £90,000 in the previous rolling 12 months, or you expect it to exceed £90,000 in the next 30 days alone. The first test is not limited to a tax or calendar year. Separate rules apply to non-established businesses. Use HMRC’s VAT registration guidance for the applicable test and exceptions.

This example assumes both amounts are taxable turnover for the same UK-established business. Do not deduct marketplace fees from sales when checking the threshold. Zero-rated supplies can count, while exempt or out-of-scope amounts need different treatment. Overseas sales require a supply-chain assessment rather than a blanket inclusion or exclusion.

Registration and effective dates

Under the past-12-month test, notification is normally due within 30 days after the end of the month when the threshold was exceeded. The effective registration date is the first day of the second following month. If the next-30-days test applies, the deadline and effective date differ: check the HMRC guidance rather than applying the retrospective timetable.

What marketplace collection changes

A marketplace may account for tax on specified transactions. That does not make every sale through Amazon exempt from the seller’s obligations, and it does not determine the treatment of direct Shopify sales. Check seller establishment, goods location and the transaction. See HMRC’s online-marketplace guidance.

For EU stock or imported goods, read cross-border VAT, OSS and IOSS and Amazon FBA accounting. A software tax setting is not evidence that every required registration is in place.

If registration is late

VAT may be due from the date registration should have taken effect, even if it was not separately collected from customers. Penalties and interest depend on the circumstances and current rules. Gather dated turnover workings and sales records, then get advice on the correction instead of applying a generic percentage to all historic sales.

Monthly monitoring and the registration handover

• Maintain a rolling turnover calculation with an explanation of included and excluded supplies.
• Review large upcoming orders against the next-30-days test.
• Confirm the effective date and appropriate tax treatment for the products sold.
• Update invoices, platform settings and digital records where required.
• Reconcile the first return and agree how VAT cash will be reserved.

Voluntary registration can be an option below the threshold, but compare customer pricing, input VAT eligibility and administration before choosing it. For support, see VAT registration and compliance, Shopify accountants and pricing.