E-Commerce VAT Accountants

Expert VAT Services for E-Commerce Sellers

VAT compliance can quickly become complex for e-commerce businesses, even when trading solely within the UK. If you sell across multiple platforms like Amazon, eBay, and Shopify, keeping VAT accurate and consistent is essential.

We support UK-based online sellers with everything from VAT registration to reconciliations and error correction.

Our UK VAT services include:

• VAT registration (including voluntary registration)
• Advice on selecting the right VAT scheme
• Reviewing and correcting VAT errors
• VAT reconciliations
• Ensuring correct VAT treatment of fees and platform charges
• Full Making Tax Digital (MTD) compliance and filing support

We tailor VAT support to your specific business model and platform setup. We’ll review your current VAT position to identify overpayments or exposure to underpayment.

Common VAT Issues We Solve for E-Commerce Businesses

Applying the Correct VAT Rate to Each Sale

Different product categories attract different VAT rates: standard, reduced, or zero-rated. We ensure your sales are mapped correctly based on what you sell, so you don’t overpay or risk penalties for misclassification.

Platform and Marketplace Fee VAT Treatment

Fees from platforms like Amazon or Shopify may include UK VAT—or be subject to the reverse charge if billed from outside the UK. We help you apply the correct treatment based on how and where fees are invoiced.

Choosing Between Cash and Accruals VAT Accounting

Most e-commerce sellers benefit from the accruals method, which allows you to reclaim input VAT as soon as you’re invoiced. We’ll help determine which method fits your cash flow and reporting needs.

VAT Errors and HMRC Notices

Mistakes happen, especially with high-volume platforms. We help correct past returns, reconcile inconsistencies, and respond to HMRC notices on your behalf.

Choosing the Right VAT Scheme

Many small businesses use the flat rate scheme, but it often leads to overpayments for e-commerce businesses. We’ll assess whether a standard scheme will give you a better result.

Making Tax Digital (“MTD”) for E-Commerce

Since April 2019, VAT-registered businesses in the UK have been required to keep digital records and file VAT returns using MTD-compliant software. If you’re still using spreadsheets or outdated systems, we can help migrate your records and integrate MTD-compliant software like Xero.

We support:

• Setup and configuration of MTD software
• Integration with e-commerce apps like A2X
• Ongoing VAT return submissions through MTD compliant software.

Even if your business is fully digital in operations, that doesn’t always translate to tax compliance. We bridge that gap.