Specialist UK accountants for Amazon FBA sellers — inventory accounting, UK and EU VAT, COGS tracking, PPC spend and pan-European marketplace compliance.
Amazon FBA accounting is unlike any other online business. Inventory sits as an asset until sold, COGS must be matched to sales accurately, VAT obligations span multiple countries, and deemed supply rules add complexity most accountants have never encountered. We understand how Amazon FBA tax works in the UK, the full VAT picture for FBA sellers and how to handle VAT, inventory and multi-currency sales correctly.
Amazon FBA VAT is uniquely complex — UK VAT, EU marketplace registrations, OSS, import VAT, reverse charge mechanisms and deemed supply rules all interact. Most general accountants do not understand FBA's VAT position. Getting it wrong means penalties, back-payment demands and potential deregistration from EU marketplaces. Read our complete VAT guide for Amazon FBA sellers or book a call to review your position.
Most accountants see e-commerce income and treat it as simple self-employment. We understand the realities — inventory as a balance sheet asset, COGS matching, multi-currency settlement, pan-European VAT obligations, deemed supply rules and the financial structure that helps FBA businesses scale efficiently.
Inventory is an asset until sold. Cost of goods sold — product cost, shipping to Amazon, prep fees — must be matched to the items you actually sell. Without correct COGS tracking your profit is wrong and so is your tax bill. Read our guide on handling FBA VAT, inventory and multi-currency sales.
Selling across DE, FR, IT, ES and other EU marketplaces triggers separate VAT obligations — either individual country registrations or the EU One Stop Shop scheme. FBA deemed supply rules mean Amazon itself is often treated as the seller for VAT, but your obligations as the underlying seller remain. Read our complete VAT guide for FBA sellers.
Amazon pays in GBP, EUR, USD and other currencies depending on the marketplace. All income must be converted to sterling for UK tax purposes at the correct exchange rate. Multi-currency bookkeeping is where many FBA sellers' accounts start to break down. We handle it correctly from the start.
Most FBA sellers benefit from a limited company once profits reach around £30,000–£50,000 per year — paying salary plus dividends reduces overall tax, and profits retained in the company for reinvestment are taxed at the lower Corporation Tax rate. We run the numbers and advise the right timing.
FBA fees, referral fees, monthly subscription, PPC advertising (Sponsored Products, Sponsored Brands, DSP), storage fees and long-term storage fees — every one is a deductible business expense. Read our guide to every expense Amazon FBA sellers can claim.
No hourly rates, no surprise invoices. A clear monthly fee that covers everything — you know the cost from day one regardless of how many marketplaces you sell on.
From your first Self Assessment or company accounts to ongoing bookkeeping, VAT across multiple countries, payroll and tax planning — we handle the financial side so you can focus on sourcing, launching and scaling.
Amazon FBA businesses have substantial claimable costs — from inventory and international freight through to PPC advertising and research software. Read our full guide to every expense Amazon FBA sellers can claim.
When you buy inventory, it does not immediately reduce your tax bill — it sits as an asset on your balance sheet. The cost only becomes deductible when you sell the item, as cost of goods sold. COGS includes the product cost, the freight to Amazon's fulfilment centre, and any prep fees. Without correct COGS tracking, sellers typically either overstate or understate their profit — both create problems. Read our guide on handling FBA VAT, inventory and multi-currency sales.
Storing inventory in EU fulfilment centres — as happens with Pan-European FBA — creates VAT registration obligations in each country where stock is held. The EU One Stop Shop scheme simplifies some of this, but deemed supply rules mean Amazon handles VAT on certain cross-border sales while leaving other obligations with you as the seller. Getting this wrong can result in significant back payments and penalties. Read our complete VAT guide for Amazon FBA sellers.
Most FBA sellers reach a point where a limited company significantly reduces their tax bill. As a director, you can take a low salary (minimising National Insurance) and extract remaining profits as dividends taxed at lower rates than income. Profits left in the company for reinvestment in inventory are taxed at Corporation Tax rates rather than Income Tax rates. We model both structures and advise the right timing based on your actual profit. Read our full Amazon FBA tax guide.
Amazon FBA businesses often scale quickly — particularly those using PAN-EU programmes. VAT registration can arrive faster than expected, and the EU obligations are separate from the UK £90k threshold.
Unsure where you sit? Book a free discovery call and we will work through your position. HMRC has guidance on Self Assessment registration and UK VAT registration.
Clear advice, plain English and a team that understands FBA — not just how to file a return.
We understand inventory accounting, COGS, deemed supply rules, OSS, multi-currency settlement and the full FBA fee structure — so your books are correct from the start.
Message us on WhatsApp and get a reply within 24 hours — no extra charge, no waiting until your next scheduled call.
No hidden costs or surprise bills. You know exactly what you pay each month and what is included from the start.
Whether you are launching your first product, expanding into EU marketplaces or considering incorporation, we help you structure for scale — not just compliance.
Everything you need to know before booking a call.
You open Seller Central, see healthy sales, then realise you have no idea how much of it is actually yours after VAT, fees and COGS. Here is how to make sense of FBA accounting.
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Read more →VAT is one of the most complex and most important aspects of running an Amazon FBA business in the UK. Whether you are just starting or expanding into EU, here is everything you need to know.
Read more →Book a free, no-obligation discovery call. We will explain exactly what we can do for you — no jargon, no surprise fees.