Selling on Amazon UK From the US: VAT, EPR and Setup

To sell on Amazon UK from the US you need a Europe selling account linked to your US account, a UK VAT registration if you will hold stock in UK fulfillment centers, a plan for importing goods into the UK, and a view on packaging EPR. You do not need a UK company: a US LLC can register for UK VAT as a non-established business.

The setup is manageable. The mistakes happen in the details: who pays import VAT, who accounts for VAT on the sale, and what Amazon expects from you on EPR. Here is the full checklist and a realistic picture of the cost.

Do you need a UK company or a UK VAT number?

No UK company is needed. Nova Data’s UK VAT guide for US sellers (July 2026) confirms US LLCs can register for UK VAT as a non-established taxable person.

VAT registration is where it gets nuanced. Since 1 January 2021 (orders paid after 11pm on 31 December 2020), UK rules make the online marketplace liable for VAT on sales by sellers not established in the UK when the goods are already in the UK, regardless of value. That is set out in HMRC’s guidance on overseas goods sold through online marketplaces. In plain terms: if your stock sits in a UK FBA warehouse and you sell to a UK consumer, Amazon accounts for the 20% VAT on that sale, not you.

So why register at all? Because you are still the importer. HMRC’s guidance says the overseas seller who first brings the goods into the UK remains liable for import VAT and duty. If you are VAT registered, you can reclaim that import VAT. If you are not, it is a straight cost. HMRC also lets overseas sellers who only make these marketplace sales choose between registering and requesting exemption, while Nova Data’s guide says US sellers storing inventory in UK FBA must register. Most sellers holding UK stock register, and so would we; confirm your position with a UK VAT adviser before you ship.

Other points from the HMRC guidance:

• For goods outside the UK at the time of sale, the marketplace is liable when the consignment is worth £135 or less.
• If a business buyer gives its UK VAT number, marketplace VAT does not apply; the buyer accounts for it.

Nova Data puts registration time at two to eight weeks, longer if HMRC asks for documents, and notes returns are filed quarterly under Making Tax Digital.

What is EPR and does it apply to you?

Extended Producer Responsibility makes businesses pay for the packaging they put on the market. According to AVASK’s EPR compliance guide (updated July 2026), the UK scheme has two tiers:

Below both thresholds, you are not an obligated producer under the UK scheme. The scheme is run by PackUK, with registration through the Environment Agency’s RPD service. AVASK notes a deadline of 1 April 2026 for H2 2025 packaging data.

Where it touches Amazon: AVASK says sellers must upload valid EPR registration numbers in Seller Central or risk listing deactivation or automatic enrollment in Amazon’s more expensive Pay on Behalf service. Who counts as the obligated producer for a non-UK seller (you, your importer or the marketplace) depends on how you are set up, and we have not seen one official page that settles every case. Check with a compliance provider, then make sure what you enter in Seller Central matches.

If you also plan to sell into the EU, EPR is stricter. AVASK notes Germany has no minimum volume threshold and requires LUCID registration before your first sale.

The setup checklist, in order

1. Open a Europe account from your Sell Globally dashboard in Seller Central. Amazon’s Europe selling page says linked accounts pay either the equivalent of USD 39.99 a month or the sum of each region’s plan fees, whichever is lower.
2. Start UK VAT registration immediately. It is the longest lead time.
3. Get a UK EORI number, needed to import goods into the UK.
4. Choose a customs broker or freight forwarder who will act on your behalf and understands that you, not Amazon, are the importer.
5. Check product compliance for the UK: labeling, safety marking and any category rules. UK rules differ from US rules.
6. Decide on EPR with an adviser and enter the right details in Seller Central.
7. Build UK listings. Do not just copy US listings: spelling, units, and search terms differ.
8. Ship a small first inbound to UK FBA, enough to test demand.
9. Set up quarterly VAT filing through an accountant or VAT service.

What does it really cost to enter?

Nova Data estimates £1,500 to £4,000 a year for an accountant or VAT service. Add the following, which vary too much to quote reliably:

• freight to the UK and customs brokerage per shipment
• import duty on your product’s tariff code
• import VAT, recoverable if you are registered
• EPR fees if you are obligated
• UK FBA fees and referral fees (check the UK rate card)
• a launch budget for UK ads and Vine

A hypothetical example: a brand with 15 SKUs sends a first shipment of 1,000 units worth $8,000 landed. Compliance alone at the midpoint of Nova’s range is about £2,750 a year. If the UK sells 300 units a month at a £12 margin after fees, that is £3,600 a month, and the fixed compliance cost is easy to carry. If it sells 40 units a month, the same cost eats most of the margin. Volume decides.

When should you wait?

Wait if any of these are true:

• Your US business is not yet stable. Expansion doubles the operational load on the same team.
• Your US listings do not convert well. The UK will not fix a weak listing.
• Your product needs category approval or UK-specific testing you have not budgeted for.
• Your margin cannot carry freight, duty and UK fees. Model it per SKU first.

Go now if your US account is profitable, your top SKUs have strong reviews, and your product ships small and light.

What we'd do this week

1. Model landed cost and UK margin for your top five SKUs.
2. Request UK VAT registration quotes from two providers and start the one you choose.
3. Ask a compliance adviser whether you are an obligated EPR producer.
4. Open the Europe account and draft UK listings for the top five SKUs.
5. Plan a small first inbound so you learn before you scale.

If Europe is next after the UK, our comparison of Pan-European FBA and EFN covers the next decision. If you want help running the UK account, see our account management service, or start with a free audit of your US account to check it is ready to expand.