VAT
UK ecommerce sellers register at the same £90,000 threshold, but marketplaces, OSS reporting and digital products add extra layers once you sell overseas.
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 UK ecommerce or Shopify business registers for VAT on the same £90,000 threshold as any other company, charging VAT on UK sales once registered. Selling through marketplaces, into the EU, or as digital downloads brings extra rules on deemed suppliers, OSS reporting and place of supply.
Selling within the UK
Selling overseas
A UK ecommerce or Shopify business registers for VAT on the same £90,000 threshold as any other company, charging VAT on UK sales once registered. Selling through marketplaces, into the EU, or as digital downloads brings extra rules on deemed suppliers, OSS reporting and place of supply.
Once registered, charge VAT at the correct rate on UK sales and account for it through your normal quarterly return. Shopify and most ecommerce platforms can be connected to Making Tax Digital compatible accounting software to pull through sales data automatically, but the VAT treatment of each product still needs checking, particularly for zero rated or reduced rate goods.
If you sell through a marketplace such as Amazon or eBay, check whether the marketplace itself is treated as the deemed supplier for certain transactions, since this changes who accounts for the VAT rather than you.
Selling goods to EU consumers usually means either registering for the EU's One Stop Shop or Import One Stop Shop, or relying on a marketplace's deemed supplier status, rather than UK VAT registration covering it. Selling digital products such as ebooks or software downloads to EU or other overseas consumers has its own place of supply and reporting rules.
Getting this wrong tends to surface as blocked shipments, customer complaints about unexpected import charges, or an enquiry from an overseas tax authority, so it is worth setting up correctly before scaling international sales rather than after.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
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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.
Frequently asked
It depends on whether the customer is a business or consumer, where they are based, and whether goods or digital services are involved, so check place of supply rules for each market.
It can calculate and collect VAT at checkout if configured correctly, but registration, returns and scheme choices remain your responsibility.
Rarely, since most ecommerce businesses hold stock and have enough input VAT that standard accounting works out better.
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.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
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