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UK tax compliance

What You Need to Start Selling in the UK from a Tax Perspective?Step-by-Step Guide: UK VAT Registration for Indian Sellers

What You Need to Start Selling in the UK from a Tax Perspective?

Before you can sell on Amazon UK using FBA, here are the key tax-related registrations and documents you’ll need as a seller based in India:

✅ UK VAT Registration

If you plan to store goods in the UK (which is the case when using FBA), you are legally required to register for VAT (Value Added Tax) in the UK — even if your sales are below the threshold. You will then need to charge VAT on your sales, file VAT returns, and pay VAT to HMRC (UK tax authority).

✅ UK EORI Number (Economic Operator Registration and Identification)

This number is needed for customs clearance when importing goods into the UK. You must apply for a UK EORI number (it starts with "GB") through HMRC. You cannot import goods without this.

✅ Importer of Record (IOR)

As a seller from outside the UK, you’ll need to act as the Importer of Record — meaning you are responsible for the customs clearance and duties. Alternatively, you can appoint a freight forwarder or customs broker to handle this on your behalf.

✅ Valid IEC (Import Export Code) from India

While not a UK requirement, your IEC issued by DGFT (India) is needed to legally export goods from India.

Step-by-Step Guide: UK VAT Registration for Indian Sellers

Indian sellers must register for VAT in the UK if:

  • You store inventory in the UK (e.g., using Amazon FBA UK).
  • You are importing goods into the UK.
  • You make taxable supplies of goods or services in the UK.

There’s no minimum sales threshold for non-UK businesses — you need to register before making your first taxable sale.  

  🧾 1. Gather Required Documents

Here’s what you’ll typically need to prepare (digitally scanned copies are fine in most cases):

  • Business registration certificate (from India – e.g., GST certificate or company incorporation docs)
  • PAN card and IEC (Import Export Code) from DGFT
  • Proof of address (can be utility bills, bank statements)
  • Passport/ID of the business owner or directors
  • Description of your business activities (e.g., “online retail of consumer electronics”
  • Estimated sales in the UK

👉 Tip: If you are applying as an individual (sole trader), you’ll submit personal documents; if as a company, you’ll submit company documents and director details.

🌐 2. Apply Online or via a Tax Agent

There are two main routes to register:

a. DIY: Apply through HMRC Online Portal
  1. Go to GOV.UK – Register for VAT
  2. Set up a Government Gateway account
  3. Complete the VAT1 form (this is the standard application)
  4. Submit supporting documents digitally or via post if requested

🕒 Processing time: 10–30 days depending on case complexity and volume.

Note: HMRC may follow up with questions or ask for more documents. They may also want to understand why you’re registering if you don’t yet have UK-based operations (which is common for Indian sellers).

b. Or use our free 1-click AI solution for that

💡 If you don't have a UK establishment, HMRC may require you to appoint a VAT representative (though this is case-by-case).

📨 3. Receive Your UK VAT Number

Once approved, you’ll receive:

  • A VAT Registration Certificate
  • Your UK VAT number (e.g., GB123456789)
  • Effective registration date (which determines when you must start charging VAT)

You must:

  • Add this number to your Amazon Seller Central UK account
  • Begin charging VAT on UK sales

Start filing VAT returns (monthly or quarterly, usually)

FAQ: VAT Registration

Q1: How long does VAT registration take?

A: Usually 10–30 days, depending on complexity.

Q2: Can I sell before receiving my VAT number?

A: Technically yes, but Amazon may block listings without it.

Q3: Is a VAT agent required?

A: Not mandatory, but recommended for ease and accuracy.

Q4: Do I need to file VAT returns even if I have no sales?

A: Yes. You must file zero returns to stay compliant.

Q5: Is VAT the same as customs duties?

A: No. VAT is charged on sales; customs duties apply at import.

FAQ: How to Set Up a Government Gateway Account

Q1: What is a Government Gateway account?

A: HMRC’s secure login for VAT and tax services.

Q2: Do I need a UK address or phone number?

A: No — Indian sellers can use their Indian contact info.

Q3: Where do I create one?

👉 Create a Government Gateway Account

Q4: What information is needed?

Email, phone number, Indian business and personal details

Q5: What happens after signup?

You receive a User ID to access HMRC and complete the VAT1 form

Q6: Anything special for Indian businesses?

Select “non-UK established” and upload business documents

Q7: What if I get stuck?

Contact HMRC support