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Tax Accountant for Amazon Sellers
VAT & Tax Services for Amazon Sellers
Call our Accountants for Amazon Sellers to see if we can save you money by planning your finances. Our Tax Advisors will always be a step ahead of your planning.
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Choosing the Right Accountant for Amazon Sellers
Tax Accountant provides expert services for Amazon sellers, ecommerce traders, and international businesses. Our team specialises in VAT, corporation tax, bookkeeping, and cross-border compliance. We deliver efficient and cost-effective solutions, ensuring accuracy and saving valuable time. From tax planning to dispute resolution, we help individuals and companies stay compliant while maximising growth.
Understanding Amazon Fees and Hidden Costs
Understanding Amazon fees and hidden costs is vital for sellers. Referral fees, FBA charges, storage, and ads all impact profit margins. Tax Accountant helps sellers analyse reports, uncover hidden costs, and improve cash flow. Our expert team of accountants and tax advisors provide clarity, tax planning, and bookkeeping support so you can maximise profits while staying compliant and focusing on growth.
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Whether you need help with simple tax returns or complex issues, we’ve designed our service to ensure you feel supported, informed, and in control every step of the way.
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Book a consultation with a tax expert to identify any issues and receive the most effective strategy for future compliance.
Appointments can be scheduled online, by phone, or in person with a tax advisor. Contact our office to discuss your needs and next steps.
The values we live by
Honesty guides everything we do. We believe in transparent advice, accurate reporting, and doing what’s right for our clients every time.
We live and breathe tax. Our expert team delivers up-to-date, accurate advice so clients stay compliant, efficient, and ahead of the curve.
Every client matters. We take time to listen, understand your needs, and deliver personalised tax solutions with care and attention to detail.
OUR SERVICES
Our Practice Areas
We are a team of specialist tax advisors who are delivering expert guidance on tax compliance, international tax, HMRC investigations, business structuring, capital gains, inheritance tax, corporation tax and self assessment services.
We know personal taxes can be overwhelming. With us, your returns are accurate, on time, and tailored to your unique life.
We know running a business is hard enough. Let us handle your business taxes so you can focus on growth with confidence.
We know smart planning makes a difference. Our tax strategies help you stay compliant, save more, and plan for the future.
We know living abroad brings tax challenges. Whether in or out of the UK, we make your expat taxes smooth and stress-free
We know HMRC enquiries can be daunting. Count on us for expert support and peace of mind during your tax investigation.
We know unfair tax bills cause stress. If you disagree with HMRC, we’ll guide your tax appeal with precision and confidence.
We are leading network of qualified accountants, tax advisors and specialist business consultants in United Kingdom
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Your Questions - Our Answers
We are here to help you with any questions you may have
Why do Amazon sellers need a specialist accountant?
Running an Amazon business often seems straightforward at first. You upload products, make sales, and Amazon handles much of the logistics. But behind the scenes, the finances can become complicated very quickly. Amazon charges referral fees, FBA fees, advertising costs, and storage fees, which all impact profit margins. On top of that, VAT and tax rules differ across countries, and the numbers in Seller Central are not always easy to interpret.
A specialist accountant who understands e-commerce does more than file returns. At Tax Accountant, we help sellers break down Seller Central reports, track true profit after fees, and prepare accurate accounts for tax purposes. We also provide proactive advice on structuring your business, cash flow planning, and tax efficiency.
Without specialist support, many sellers risk paying more tax than necessary or making mistakes that trigger HMRC enquiries. With expert guidance, you can save time, reduce stress, and concentrate on scaling your store. Choosing the right accountant is about more than compliance — it’s about building a reliable partner who understands how Amazon works.
How do I handle VAT for Amazon sales across different EU countries?
VAT can be one of the biggest challenges for Amazon sellers, especially if you sell across Europe. In the UK, you must register once your turnover reaches £90,000. However, storing goods in EU countries through Fulfilment by Amazon (FBA) or making cross-border sales often creates additional VAT obligations.
The rules vary across member states, and Amazon does not take responsibility for ensuring you are compliant. If you store stock in Germany, for example, you may need to register for VAT there even if you are below the UK threshold. To simplify EU compliance, the One Stop Shop (OSS) scheme allows sellers to report all EU VAT in one quarterly return, but not every business structure is eligible.
At Tax Accountant, we guide clients through EU VAT registrations, OSS reporting, and ongoing compliance. We also review your Amazon reports to ensure VAT is calculated correctly and that you are reclaiming any allowable input VAT on expenses. Proper VAT management prevents costly penalties and protects your margins when trading internationally.
What tax implications should I consider when using Fulfilment by Amazon (FBA)?
Fulfilment by Amazon (FBA) is popular because it helps sellers reach customers quickly and grow their business without managing their own warehouses. However, FBA comes with important tax issues. When Amazon stores your products in different countries, you should register for local VAT. Additionally, your income is taxed either under UK Income Tax (for sole traders) or Corporation Tax (for limited companies), based on how your business is set up.
FBA also affects your expenses. Costs for storage, fulfilment, shipping, and returns lower your taxable profit, but you must record them accurately. If you don’t track these expenses correctly, you may be paying too much or too little tax.
At Tax Accountant, we provide personalised advice for FBA sellers to ensure all transactions are recorded correctly. We also assist with VAT compliance in multiple countries, cross-border tax planning, and profit analysis. With our support, FBA can help your business grow instead of causing compliance problems.
How do I account for Amazon's various fees in my bookkeeping?
Amazon fees can be confusing because they appear in different formats across reports. Referral fees, FBA fulfilment fees, storage charges, and advertising spend are often deducted before you receive your payout. Without proper bookkeeping, it’s easy to overestimate profit and struggle with cash flow.
To manage this, sellers need to reconcile Amazon settlements with their bank statements and ensure that all fees, refunds, and chargebacks are recorded. This is not always straightforward since Amazon’s reports can be lengthy and complex.
At Tax Accountant, we simplify this process by using specialist software and accounting methods tailored to Amazon sellers. We track each cost, allocate it correctly, and prepare accurate accounts. This allows you to see your real profit margins and identify where costs can be reduced. Professional bookkeeping ensures you have reliable figures for VAT returns, tax filings, and business planning.
What are the key financial reports I should be reviewing as an Amazon seller?
Amazon provides several reports, but not all are equally useful for financial decision-making. The most important include the Settlement Report, which shows payouts and fees, and the Inventory Reports, which help track stock levels and storage charges. Advertising Reports reveal how much you are spending to generate sales, and Business Reports give insights into order volume and conversion rates.
Sellers should review these regularly to monitor profitability, manage cash flow, and avoid surprises at tax time. For example, a seller may have high sales volume but negative cash flow because advertising costs or returns are too high.
At Tax Accountant, we turn these reports into clear financial insights. We prepare management accounts, highlight trends, and advise on improving margins. By focusing on the right data, you can make better decisions about pricing, stock management, and growth strategies.
How do I manage my tax obligations if I'm dropshipping on Amazon?
Dropshipping on Amazon can seem attractive because you don’t hold inventory. However, tax obligations remain complex. Even if you never touch the goods, you are still responsible for VAT, Income Tax or Corporation Tax, and record-keeping.
For VAT, it depends on where the goods are shipped from. If they come from outside the UK, you may need to handle import VAT and customs duties. Amazon may collect VAT on some transactions, but the responsibility to report correctly often rests with the seller.
At Tax Accountant, we work with dropshippers to clarify VAT obligations, ensure taxes are filed correctly, and identify all allowable expenses. We also provide guidance on structuring your dropshipping business to reduce tax exposure and remain compliant with HMRC. Proper planning keeps your business secure and profitable.
How can I ensure I'm claiming all allowable expenses for my Amazon business?
Amazon sellers often miss out on tax savings by not claiming all the expenses they are entitled to. Allowable expenses include packaging, shipping, advertising, software subscriptions, storage, and even a portion of home office costs if you work from home.
The challenge lies in record-keeping. Without clear bookkeeping, expenses are easily overlooked. For example, small recurring charges like software subscriptions add up over the year.
At Tax Accountant, we review your Amazon reports, bank statements, and receipts to ensure nothing is missed. We also educate clients on HMRC’s allowances and how to document expenses properly. Claiming all allowable expenses reduces taxable profit, lowers your tax bill, and increases cash available for reinvestment.
What tax planning strategies should I consider as an Amazon seller?
Tax planning goes beyond filing returns — it’s about structuring your business for efficiency. Amazon sellers can benefit from choosing the right business structure, planning how profits are withdrawn, and timing investments or purchases.
For limited companies, strategies may include splitting income between salary and dividends, making pension contributions, or reinvesting profits. Sole traders can plan for allowances and reliefs that reduce Income Tax. Sellers planning to expand into Europe need strategies for VAT efficiency across borders.
At Tax Accountant, we design bespoke tax strategies for Amazon sellers. We forecast liabilities, identify savings opportunities, and ensure compliance. With proactive planning, you keep more of your profits and can grow your business with confidence.
How should I prepare for and handle an HMRC investigation as an Amazon seller?
HMRC regularly reviews e-commerce businesses, and Amazon sellers are no exception. Irregularities in VAT returns, unreported overseas sales, or discrepancies between declared income and bank deposits may trigger an investigation. Preparation is key. Sellers should maintain detailed records of sales, fees, refunds, and expenses. Clear reconciliation between Amazon settlements and tax filings reduces the risk of penalties.
If you receive an enquiry letter, do not panic. At Tax Accountant, we support clients through every stage of HMRC investigations. We prepare responses, manage communication with HMRC, and negotiate settlements if needed. For serious cases such as COP9 investigations, we provide expert representation to protect your position.
Proper support transforms an investigation from a stressful event into a manageable process. With expert guidance, you can resolve issues while protecting your business reputation.
What should I know about Capital Gains Tax, valuations, and exit planning if I sell my Amazon business?
Many Amazon sellers aim to grow their store and eventually sell it. When that happens, Capital Gains Tax (CGT) may apply on the profit made from the sale. Reliefs such as Business Asset Disposal Relief can reduce CGT to 10% if conditions are met.
Valuation is a key step. Buyers look at profits, brand strength, diversification, and growth potential. A business with well-kept financials and low risk commands a higher price. Exit planning should begin well in advance to maximise value and minimise tax.
At Tax Accountant, we provide professional valuations, exit planning strategies, and CGT advice. We ensure your business is structured correctly, records are clear, and reliefs are available at the time of sale. With proper planning, you retain more of the wealth you’ve built and can move smoothly into your next venture.