UK company for Amazon FBA and e-commerce sellers from the Arab world
Key takeaways for Arab directors
- 1A UK Ltd is the standard structure for Amazon UK FBA — gives you a legal entity, GBP account, and VAT registration route
- 2VAT registration is mandatory above £90,000 annual UK sales; voluntary registration below allows import VAT reclaim on stock
- 3Your UK company needs an EORI number as the importer of record when shipping stock to UK fulfilment centres
- 4Amazon fees, FBA costs, import duties, and shipping are all deductible against Corporation Tax
- 5Wise Business connected to Xero keeps bookkeeping clean and reduces accountancy costs at year end
Fileminder’s take, written for Arab UK company directors
Amazon UK allows individual sellers to list products, but for serious FBA operations — inventory in UK fulfilment centres, bulk imports, and B2B sales — a UK limited company is the standard structure. It gives you a legal entity for Amazon's seller agreement, a GBP business account for payouts (Wise works well), and a clear VAT registration route. It also brings specific UK compliance obligations most Gulf-based sellers only discover after the fact.
VAT is the most important consideration. If your Amazon UK taxable sales exceed £90,000 in any rolling 12-month period, VAT registration is mandatory. You collect 20% VAT on sales, file quarterly VAT returns with HMRC under Making Tax Digital, and pay the net VAT collected. Below the threshold, registration is optional — but many FBA sellers register voluntarily specifically to reclaim the import VAT (20%) paid when stock enters the UK. If you're importing £50,000 of goods, the import VAT reclaim can be £10,000 — often more than enough to justify voluntary registration.
Import duties and EORI. When you ship goods from overseas into an Amazon UK fulfilment centre, your UK company is the importer of record. You need an EORI number (Economic Operator Registration and Identification) — a free registration with HMRC's customs system. UK import duty applies at the applicable tariff rate for your product category (many consumer goods are 0–5%, but some categories are higher). Import VAT at 20% is reclaimable if you're VAT-registered.
Corporation Tax applies to your Amazon trading profits at 19% (under £50,000 net profit) rising to 25% above £250,000. Amazon fees, FBA fulfilment costs, import duties, and shipping are all deductible expenses. A Wise Business account connected to Xero, with Amazon payouts flowing in automatically, keeps bookkeeping clean and year-end preparation cheap.
Your UK company needs a confirmation statement, annual accounts filed with Companies House, and a Corporation Tax return with HMRC each year — even in low-trading periods. Director ID Verification is mandatory from November 2025 for new directors. Fileminder works with Arab e-commerce sellers, handling accounts, tax returns, and director ID verification in Arabic during Gulf hours.
Written by
Ibrahem Almahawe
AAT-qualified accountant and ACCA member, founder of Fileminder, and author of the eight-book International Taxation Series. Browse the books →
Related reading
Related resources
Disclaimer
General educational guidance only — not legal, tax, accounting, immigration, investment or financial advice. We don't guarantee the information is complete, current or suitable for your situation. Always check official sources (GOV.UK, Companies House, HMRC, the relevant professional body) and speak to a qualified professional before acting. Last reviewed: July 2026.
Have a question about your company?
Message us on WhatsApp, we respond within 2 hours, Sun–Thu, 9am–6pm GST.
Message us on WhatsApp