If you wish to sell on Amazon UK you do not have to register a UK company, however it may help if you do.
Anyone can sell on Amazon UK including those who wish to use their foreign company.
However you would need to ensure you follow the strict VAT rules which means mandatory registration.
Whilst this may be optional in some circumstances, due to Amazon’s own policy, unless they are satisfied that you are formally registered, they may either close your existing listings or not allow you to start selling in the first place.
As such, they will generally only allow those businesses registered for VAT to sell on Amazon UK
If you register a UK Limited Company then VAT becomes more optional, as it is not mandatory for businesses to register until their turnover exceeds £85,000 (2019-2020)
This also may give you some additional tax advantage when you sell on Amazon UK as you in the UK all sales tax is included in the sale price.
This means if you are not VAT registered and sell for £24.00 you get to keep the full £24.00
If you are VAT registered and sell for £24.00 you would keep £20.00 and pay the £4.00 VAT element over to HMRC.
Whilst this is limited to only the first £85,000 of your turnover, there is some advantage.
Registration is only mandatory once you have reached that limit.
So if you wish to sell on Amazon UK and be most tax efficient, then it would always be best to seek some expert advice.
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