E-commerce accountants
Dropshipping accountants in the UK: supplier invoices, import VAT, place of supply, ad spend and margin tracked, company accounts and VAT filed monthly.
Short answer
A dropshipping accountant handles the awkward parts of the model: overseas supplier invoices, import VAT and who is the importer of record, place of supply on sales, and advertising spend that dominates the cost base. Then the usual company filings follow.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityA dropshipping accountant handles the awkward parts of the model: overseas supplier invoices, import VAT and who is the importer of record, place of supply on sales, and advertising spend that dominates the cost base. Then the usual company filings follow.
Who imports the goods decides the VAT
Margin survives or dies on advertising
Supplier records and substantiation
A dropshipping accountant handles the awkward parts of the model: overseas supplier invoices, import VAT and who is the importer of record, place of supply on sales, and advertising spend that dominates the cost base. Then the usual company filings follow.
If goods come from outside the UK direct to your customer, the treatment turns on who is named as importer, the consignment value and whether a marketplace is involved. Consignments at or below £135 are handled differently from higher value ones. Getting this wrong shows up as unexpected customer charges and as VAT you never collected.
Dropshipping margins are thin, so the ratio of ad spend to contribution is the business. We report cost per acquisition against contribution per order, not just total marketing spend, so you can see which campaigns are funding the company and which are funding the platform.
Purchases from overseas suppliers often arrive as portal screenshots rather than invoices. HMRC expects evidence for a deduction. We set up a simple routine that captures a supportable record per order, which also makes an enquiry a non event.
Rates, thresholds and deadlines quoted here reflect the current UK position and current HMRC and Companies House guidance. Check GOV.UK, or ask us, before relying on them for your own business.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Google reviews
“I've been working with Accotax since January 2024, and their support has grown alongside my business needs. My personal allocated manager, Umer, provides tailored services for both of my companies, adapting as I expand and ensuring everything runs smoothly. They are responsive, knowledgeable, and always clear in their communication. Their help with accounts, VAT, payrolls, pensions and compliance gives me real confidence and peace of mind.”
“We worked with a few different accountants before finally settling with Accotax, and we're really glad we did. They take the time to understand how our business works and what our needs are. Anum, who looks after our account on a day-to-day basis, including reconciling invoices and preparing the annual accounts, is amazing, professional, efficient, and follows the processes we have put in place together. Accotax has made our accounting experience much smoother and easier. We see them as a long-term partner as our business continues to grow. I would 100% recommend them.”
“Accotax have been our accountants for many years now. We maintained them because of their professionalism. In the last couple of years I have been working with Imran, who has been very professional and helpful in guiding us through the whole process, explaining and clarifying every aspect of it. Very prompt in responding to questions and patient with us even when we seem to be slow.”
Frequently asked
Once taxable turnover passes £90,000 in a rolling twelve months, yes, and sometimes earlier depending on your supply chain.
Only where you are the importer and hold the correct evidence, typically through postponed VAT accounting.
Usually once it is established, both for tax and for the payment processors, but it adds filing obligations.
Start with gross orders and reconcile through refunds, marketplace taxes, selling fees, advertising, fulfilment charges, reserves and currency differences to the net bank deposit. The settlement report, not the bank receipt alone, is the accounting source.
Selling, payment, fulfilment and advertising fees should be separated so contribution margin is visible by channel. This helps distinguish high revenue from profitable revenue and supports better pricing, stock and advertising decisions.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
