Company Formation, Amazon Seller Verification, Suppliers, VAT, EORI, Customs, Banking, Product Compliance, UK/EU Fulfilment and Cross-Border Tax Explained

Updated: August 2026

You do not need to live in the United Kingdom to build a business selling products to UK customers through Amazon.

A founder living in Belgium, France, Ireland, Spain, Italy, Germany, the UAE, Saudi Arabia, Oman, India, Pakistan, Malaysia, Ghana or another country may be able to sell through Amazon UK and, where commercially appropriate, use a UK Limited Company as the legal entity behind the business.

But there is a major difference between:

opening an Amazon Seller Central account

and

building a properly structured Amazon FBA business that can source products, import inventory, pass verification, receive payouts, account for VAT and remain compliant.

For international sellers, Amazon FBA sits at the intersection of:

company formation → Amazon verification → supplier sourcing → logistics → customs → VAT → banking → product compliance → accounting → home-country taxation.

If one part is wrong, the rest of the structure can become difficult.

This guide explains the complete process from A to Z.

Quick Answer: Can a Non-Resident Start Amazon FBA in the UK?

Potentially, yes.

An international founder may be able to sell on Amazon UK without becoming a UK resident.

You also do not automatically need a UK Limited Company simply because you want to sell on Amazon.co.uk.

Depending on your situation, the seller could potentially be:

• you as an individual where Amazon permits;
• your existing Belgian, French, Irish, Spanish, Italian or other company;
• an existing UAE or other overseas company;
• a newly incorporated UK Limited Company.

The best structure depends on much more than incorporation cost.

Before choosing an entity, consider:

• where you live;
• where the business is actually managed;
• where inventory will be stored;
• which Amazon marketplaces you intend to use;
• VAT obligations;
• importer-of-record responsibilities;
• banking eligibility;
• Amazon verification;
• product compliance;
• your home-country tax position.

The fundamental question is therefore not:

“Can I form a UK company for Amazon FBA?”

It is:

“Is a UK company the right operating structure for my Amazon business?”

Planning an Amazon FBA UK Business From Overseas?

Seven Oak Prestige helps international founders structure the UK corporate, Companies House, address, banking-readiness, VAT and EORI components surrounding an international e-commerce business.

Review My Amazon FBA UK Setup

1. What Is Amazon FBA?

FBA means:

Fulfilment by Amazon.

Instead of personally storing, packing and dispatching every customer order, an FBA seller sends inventory into Amazon’s fulfilment network.

Amazon then handles relevant fulfilment functions such as storage, picking, packing, shipping and customer fulfilment services under the programme.

This is fundamentally different from FBM — Fulfilled by Merchant, where the seller or another logistics provider fulfils customer orders.

Amazon describes the overall seller journey as:

1. choose what to sell;
2. create a seller account;
3. list products;
4. ship inventory / fulfil orders;
5. manage the business.

For an international founder, however, there is an important extra layer:

Who legally owns and imports that inventory?

That question affects almost everything else in this guide.

2. Amazon FBA vs FBM

FBA

You send inventory into Amazon’s fulfilment network.

Advantages can include:

• scalable fulfilment;
• Prime-related customer experience where eligible;
• less direct fulfilment administration;
• Amazon handling much of the logistics after stock is received.

But you may face:

• storage fees;
• fulfilment fees;
• inbound shipping costs;
• inventory risks;
• VAT implications where goods are stored;
• customs obligations;
• additional compliance requirements.

FBM

You or a third-party warehouse fulfils orders.

This may provide:

• greater stock control;
• alternative fulfilment economics;
• flexibility for oversized or slow-moving goods.

But it also means responsibility for the fulfilment operation sits elsewhere.

Neither model is universally superior.

Your product size, margin, turnover speed and countries of sale matter.

3. Can You Start Amazon FBA From Belgium, France, Spain or Another Country?

Potentially, yes.

Amazon Global Selling is specifically designed for sellers operating across countries and Amazon marketplaces. Amazon states that international selling involves deciding where and what to sell, creating the appropriate seller account, listing products, arranging fulfilment and then managing the business.

However, your physical location and your inventory location are separate issues.

Example:

Founder: Belgium
Company: UK Ltd
Supplier: China
Inventory: UK Amazon fulfilment centre
Customers: UK

Another seller might have:

Founder: France
Company: French SAS
Inventory: France and Germany
Customers: EU

And another:

Founder: UAE
Company: UK Ltd
Inventory: UK
Customers: UK

All three are Amazon businesses.

Their tax, customs and company structures are different.

4. Do You Need a UK Limited Company to Sell on Amazon UK?

Not automatically.

This deserves a direct answer because many online formation providers oversimplify it.

Amazon asks sellers to identify their business location and business type during registration. If the seller is incorporated, Amazon expects the legal business information to reflect that business. 

Therefore, if you already operate through a legitimate:

• Belgian company;
• French company;
• Irish company;
• Spanish company;
• Italian company;
• German company;
• UAE company;
• other eligible foreign entity,

you should not automatically incorporate a UK Ltd simply because you want Amazon UK access.

First compare:

existing company

versus

new UK Ltd.

5. When a UK Limited Company May Make Sense for Amazon FBA

A UK Ltd may be worth considering when:

• the business is intentionally building a UK corporate presence;
• UK customers are a principal market;
• inventory will be stored in Britain;
• the founder wants a separate legal entity for the Amazon business;
• UK supplier/customer contracts will be used;
• the founder wants the Amazon venture separated from another business;
• a UK company fits the long-term international structure;
• the founder expects to expand beyond Amazon into Shopify, TikTok Shop or wholesale;
• the UK entity has a genuine commercial rationale.

A UK Ltd should not be formed solely because someone told you:

“Amazon approves UK companies faster.”

or:

“A UK Ltd guarantees Stripe, banking or Amazon verification.”

It does not.

6. When Your Existing Overseas Company May Be Better

Suppose you already have a functioning Belgian company with:

• business banking;
• accounting;
• established supplier relationships;
• VAT infrastructure;
• genuine commercial activity.

Creating an additional UK Ltd may introduce:

• another accounting system;
• Companies House obligations;
• Corporation Tax;
• another bank onboarding;
• intercompany transactions;
• transfer-pricing considerations;
• additional annual compliance.

Sometimes that is justified.

Sometimes it is unnecessary.

Good international structuring starts with the business model, not with incorporating as many entities as possible.

7. UK Ltd vs Existing EU Company for Amazon UK

The purpose of this table is not to say UK Ltd wins.

It is to show why entity selection comes before Amazon registration.

8. Can a Non-Resident Own 100% of the UK Amazon Company?

Generally, a non-resident may potentially own 100% of an ordinary UK private limited company.

The same founder may potentially be:

shareholder

• ●

director

• ●

PSC

where the facts satisfy the relevant ownership/control rules.

You do not need to introduce an artificial UK shareholder solely for appearance.

For the wider ownership framework, see our UK Company Shares & Directors for Non-Resident Founders⁠.

9. Form the Company Before Opening Amazon — or Amazon First?

For a business seller, I generally prefer the corporate structure to be resolved before opening the final seller account.

Why?

Amazon asks for information such as:

• business location;
• business type;
• legal business name;
• primary contact;
• beneficial ownership;
• business verification;
• bank information.

If you register under one structure and then immediately change to another, verification can become more complicated.

Decide who the seller legally is first.

Then make Seller Central reflect reality.

10. What UK Company Setup Does an Amazon Founder Need?

For a UK Ltd, consider:

• legal company name;
• director;
• shareholders;
• PSCs;
• registered office;
• director service address;
• genuine residential address;
• registered email;
• SIC code;
• share structure;
• Companies House identity verification.

For the complete incorporation framework, use our UK Company Formation for Non-Residents: Complete 2026 Guide⁠.

11. Registered Office Is Not the Same as Your Amazon Operating Address

This distinction is crucial for international sellers.

Your UK company may legitimately have:

Registered office: London
Founder residence: Brussels
Business management: Brussels
Inventory: UK Amazon fulfilment centre

Do not describe the London registered office as your actual warehouse or management headquarters if it is merely a statutory address service.

HMRC specifically says that a registered, serviced or virtual office alone does not create a UK VAT establishment. Even incorporation in the UK is not, by itself, always sufficient to establish that the business is genuinely operated from the UK.

For address architecture, see our Registered Office vs Director Service Address Guide⁠.

12. Companies House Identity Verification

UK company formation now also involves mandatory Companies House identity-verification requirements for relevant directors and PSCs.

This is separate from Amazon’s own verification.

A founder may therefore go through:

Companies House identity verification

and separately:

Amazon seller identity / business verification

and later:

bank KYC.

Passing one does not guarantee passing another.

For the Companies House process, use our Companies House Identity Verification for Non-Residents Guide⁠.

13. Amazon Seller Verification: What Does Amazon Check?

Amazon’s current UK verification framework can include four major layers:

1. identity verification;
2. address verification;
3. bank-account verification;
4. business verification.

Amazon says this can involve individuals connected to the account including:

• point of contact;
• legal representative;
• beneficial owners;
• trustees where relevant;
• secondary users in relevant circumstances.

This is why creating a company with unnecessary owners or directors can make onboarding more complex.

14. Documents Amazon May Ask For

Requirements can vary by account and jurisdiction, but Amazon’s current registration guidance identifies documentation such as:

Identity

• valid passport;
• national identity card;
• other accepted government ID depending on jurisdiction.

Address

Potential evidence includes:

• bank statement;
• utility bill;
• other accepted proof of address.

Amazon says proof-of-address information should match the individual information entered and generally needs to be recent; screenshots and altered documents can be rejected.

Company

• incorporation / registration documentation;
• articles or equivalent;
• evidence connecting the primary contact to the company;
• letter of authorization where applicable.

Banking

• account details;
• potentially a bank statement where automatic verification is unavailable.

15. Amazon Verification Rule: Consistency Matters More Than “Looking British”

Suppose:

Passport: Pakistan
Residential address: Dubai
UK company registered office: London

Those three facts can coexist.

The mistake would be declaring:

residential address: London

simply because the UK company uses a London registered office.

Amazon’s global registration guidance specifically tells applicants whose identity document differs from their country of residence to ensure their proof of address corresponds to the actual residence country.

Your KYC story should be accurate, not cosmetically UK-looking.

16. Can Amazon Ask for Additional Verification Later?

Yes.

Verification is not necessarily a one-time event forever.

Changes involving:

• owners;
• directors;
• address;
• bank;
• legal entity;
• business information;

can trigger further review.

Amazon also communicates additional verification requests through Seller Central and account notifications.

Keep your documents current.

17. Why Amazon Seller Accounts Get Stuck in Verification

Common causes include:

• name mismatch;
• incomplete legal name;
• incorrect company number;
• residential address mismatch;
• blurry document;
• cropped statement;
• screenshots rather than originals;
• expired documents;
• bank-holder name mismatch;
• unexplained owner/director relationships;
• using a service address as personal residence;
• inconsistent business entity;
• inability to document the primary contact’s authority.

Do not create documentation merely to satisfy a request.

Correct the underlying inconsistency.

18. Amazon Individual vs Professional Selling Plan

Amazon currently advertises two UK selling plans.

The Individual plan is charged per unit sold, while the Professional plan has a monthly fee of £25 excluding VAT, plus applicable referral and other fees. Amazon currently states £0.75 per item for the Individual plan in its UK materials.

For a genuine FBA business planning to scale, the Professional plan will often warrant consideration because of the broader seller functionality.

But your selling plan is not the same as your legal entity type.

Professional Amazon plan ≠ UK Limited Company.

19. What Should You Sell on Amazon?

This is where many new sellers make their biggest mistake.

They choose a product based on:

• TikTok hype;
• a YouTube video;
• one competitor’s revenue screenshot;
• personal preference;
• low Alibaba unit price.

A product should instead be assessed through:

demand + competition + margin + logistics + compliance + differentiation + cash cycle.

20. Product Research: What to Measure

Before ordering inventory, assess:

Demand

Is there sustained customer interest?

Competition

How dominant are established listings?

Price

Can the product support your economics?

Size and weight

These affect freight, storage and FBA costs.

Return rate

Products with fit, fragility or expectation problems can be expensive.

Regulation

Cosmetics, electronics, toys, food, medical-type products and other regulated categories require additional diligence.

Seasonality

Christmas-only demand is different from year-round demand.

Differentiation

Why should a customer buy yours?

Amazon itself recommends reviewing marketplace demand, regulation and tax considerations before choosing products for international markets and points sellers toward tools such as Marketplace Product Guidance and Product Opportunity Explorer.

21. Start With Fewer Products

A common beginner mistake is launching:

20 products × large MOQs

before knowing whether any of them convert.

Amazon’s own product-compliance guidance encourages sellers to initially prioritise fewer products or product families because this can simplify compliance and reduce cost and complexity.

For many first-time founders, one well-researched product is better than a chaotic catalogue.

22. Private Label vs Wholesale vs Arbitrage

Private Label

A manufacturer produces goods sold under your own brand.

Potential advantages:

• differentiation;
• brand equity;
• pricing control.

Challenges:

• MOQ;
• tooling/packaging;
• compliance;
• trademark;
• inventory risk.

Wholesale

Purchase established products from authorised distributors or brands.

Potential advantages:

• existing demand;
• no need to invent a brand.

Challenges:

• thinner margins;
• competition;
• authorisation/invoice requirements;
• Buy Box dynamics.

Arbitrage

Purchase existing products at one price and resell on Amazon.

Operationally different from building a private-label brand.

For Seven Oak’s international-founder audience, private label and wholesale are particularly relevant because they intersect most strongly with suppliers, importing, VAT, customs and corporate infrastructure.

23. Where Can You Find Amazon FBA Suppliers?

There is no single “best Amazon supplier”.

I would divide sourcing into several channels.

Manufacturer marketplaces

Useful for private label.

Examples include:

• Alibaba;
• Global Sources.

Wholesale marketplaces

Potentially useful for existing products and brands.

Examples include:

• Faire;
• authorised industry wholesalers.

Direct manufacturers

Found through:

• industry searches;
• manufacturing directories;
• chambers/trade organisations;
• referrals.

Trade fairs

For example, large manufacturing and sector-specific exhibitions.

Sourcing agents

Useful where you require:

• factory discovery;
• negotiation;
• quality control;
• consolidation;
• local-language support.

The supplier platform is not your due diligence.

24. China vs UK vs EU Suppliers

China

Potentially attractive for:

• manufacturing depth;
• private label;
• product customization;
• unit economics at scale.

But consider:

• freight;
• longer lead time;
• customs;
• import VAT;
• inspections;
• IP risk;
• communication;
• MOQ.

UK suppliers

Potential advantages:

• faster logistics;
• simpler replenishment;
• potentially easier supplier communication;
• no international import leg when goods are already in free circulation in Great Britain.

But unit costs may be higher.

EU suppliers

For a UK Amazon operation after Brexit, EU-to-GB movements are international customs movements.

Do not treat France → UK or Belgium → UK as if it were a domestic EU shipment.

25. How to Vet an Alibaba or Overseas Supplier

Before sending significant money, check:

• legal business identity;
• manufacturing capability;
• years operating;
• factory versus trading company;
• samples;
• existing export experience;
• product test reports;
• quality-management processes;
• references where possible;
• production lead times;
• packaging ability;
• agreed specifications;
• inspection arrangements.

For higher-risk orders, consider independent pre-shipment inspections.

Amazon itself points sellers toward recognised compliance providers including organisations such as SGS, MTS and QIMA through its Service Provider Network.

26. Always Order Samples

Do not place a £10,000 inventory order based only on:

• supplier photos;
• Alibaba listing;
• video call.

Evaluate:

• product quality;
• packaging;
• dimensions;
• weight;
• material;
• labelling;
• instructions;
• defect rate;
• customer experience.

Your Amazon review profile can be destroyed by a product problem that could have been detected before production.

27. MOQ Is Not the Only Negotiation Point

MOQ means minimum order quantity.

But also negotiate:

• unit price;
• deposit;
• balance-payment timing;
• packaging;
• labelling;
• spare units;
• inspection;
• lead time;
• production tolerance;
• replacement of defects;
• shipping terms.

A slightly higher unit price with a lower first MOQ can sometimes be smarter than committing too much capital to an unproven product.

28. Understand Incoterms

Terms such as:

EXW
FOB
CIF
DAP
DDP

affect who handles different parts of transport, risk and cost.

Do not choose DDP simply because it sounds easiest without understanding:

• who is importer;
• whose EORI is used;
• whose VAT number is used;
• whether customs documentation correctly identifies your business.

The cheapest shipping quotation can become expensive if the import structure is wrong.

29. Who Is the Importer of Record?

This is one of the most important sections in the entire guide.

If you send stock from an overseas supplier directly to Amazon UK FBA, Amazon is not your importer of record.

Amazon’s current international-trade guidance explicitly states that the seller is responsible for customs clearance and that Amazon will not act as Importer of Record for FBA inventory.

Do not write:

Amazon Fulfilment Centre

as the importer simply because that is where the goods are going.

Your:

ship-to location

and

Importer of Record

are different concepts.

30. What Is a UK EORI Number?

EORI means:

Economic Operators Registration and Identification.

It is used in customs processes.

If your business imports goods into Great Britain, a GB EORI can become necessary.

For an Amazon FBA business importing stock from China, Turkey, UAE, India or the EU into Great Britain, this should be analysed before the first shipment.

Seven Oak provides UK EORI Registration Support⁠ where relevant.

31. Do Not Ship Before VAT/EORI Structure Is Ready

Imagine:

Factory completes 2,000 units.

Cargo leaves Shenzhen.

Then the seller discovers:

• no appropriate VAT setup;
• no GB EORI;
• incorrect importer;
• incorrect commercial invoice.

At that point, the problem is already expensive.

The preferred sequence is:

company/entity

→

VAT analysis

→

EORI

→

importer arrangement

→

freight

→

Amazon inbound shipment

—not the reverse.

Amazon currently advises international FBA sellers to have the required VAT/EORI framework in place before goods reach the UK border.

32. Commercial Invoice and Commodity Codes

Imports require accurate customs information.

Relevant data can include:

• seller/exporter;
• buyer/importer;
• product description;
• quantity;
• country of origin;
• value;
• commodity/HS code;
• Incoterm;
• EORI;
• VAT details where appropriate.

Avoid meaningless descriptions like:

“accessories”

or

“gifts.”

Customs classifications affect duty and other treatment.

33. Customs Duty, Import VAT and Selling VAT Are Different

Three concepts should not be confused.

Customs Duty

Potential duty charged when importing goods, depending on:

• commodity classification;
• origin;
• customs value;
• applicable tariff/preferences.

Import VAT

VAT arising on importation.

Output VAT / VAT on sales

VAT treatment when the product is subsequently sold.

The fact that Amazon may account for VAT on certain marketplace transactions does not mean your import-VAT position disappears.

HMRC explicitly explains that overseas sellers importing goods stored in Britain can incur import VAT/customs consequences even where the marketplace later has VAT obligations on customer sales.

34. Does an Amazon FBA Seller Need UK VAT Registration?

This is where generic articles often become dangerously simplistic.

For a normal UK-established business, compulsory registration generally applies when taxable turnover exceeds the current £90,000 threshold, subject to the relevant rules.

But an overseas business that is a non-established taxable person — NETP can face a different rule.

HMRC states that an NETP making taxable UK supplies may have to register regardless of value.

Therefore:

“I am below £90,000, so I definitely do not need VAT.”

is not a safe conclusion for every international Amazon seller.

35. Does Forming a UK Ltd Automatically Make You UK-Established for VAT?

No.

This is a crucial 2026 distinction.

HMRC states that a company being incorporated in the UK alone is not necessarily sufficient to demonstrate a UK establishment.

Likewise:

• registered office;
• serviced office;
• virtual office;
• mail-forwarding address;
• fulfilment warehouse alone;

may not establish the business in the UK for VAT purposes. HMRC looks at where management/central administration takes place and whether there are genuine human and technical resources.

That is particularly important for:

UK Ltd + founder in UAE + Amazon warehouse in UK

or

UK Ltd + founder in Belgium + registered office London + no UK staff.

Do not assume incorporation settles the VAT-establishment test.

36. Amazon’s Own Guidance on FBA and VAT

Amazon currently tells non-UK resident FBA sellers storing goods in the UK that UK VAT registration may be required immediately, regardless of turnover, and notes that Pan-European FBA can create registrations in additional inventory countries.

That makes inventory location one of the first tax questions you should ask.

37. Online Marketplace VAT Rules

UK marketplace VAT rules can shift responsibility for VAT on certain consumer sales to the online marketplace.

HMRC explains that where goods are located in the UK at the point of sale and sold by an overseas business through an online marketplace, the marketplace can become liable for VAT on the relevant consumer transaction.

But this does not automatically eliminate:

• VAT registration considerations;
• import VAT;
• B2B transaction treatment;
• reclaim opportunities;
• VAT returns;
• recordkeeping.

Marketplace VAT is not the same as “no VAT obligations”.

38. The £135 Rule

For certain goods located outside Great Britain at the point of sale and sent in consignments valued at £135 or less, special VAT rules can apply.

HMRC explains that qualifying low-value consignments can be treated as UK supplies with VAT accounted for at the point of sale, including marketplace rules where applicable.

This is most relevant where the goods are outside the UK when sold.

It should not be confused with ordinary FBA stock already sitting inside a UK warehouse.

39. UK FBA Stock vs Direct Shipping From China

These are different tax/logistics models.

UK FBA model

China supplier
→ import into UK
→ Amazon UK warehouse
→ customer

Inventory is already in Britain when sold.

Direct cross-border model

China supplier / overseas warehouse
→ UK customer

Goods are outside Britain at sale and imported after purchase.

The £135 marketplace rules are much more relevant to the second model.

Do not mix them.

40. UK vs EU FBA After Brexit

The UK is no longer simply part of the EU Pan-European FBA inventory pool.

Amazon confirms that the UK ceased being part of Pan-European FBA following Brexit; inventory intended for UK FBA must be imported into UK fulfilment centres under the applicable UK-EU customs framework.

Therefore:

UK inventory

and

EU inventory

need separate planning.

41. What Is Pan-European FBA?

Amazon’s Pan-European FBA programme can distribute eligible inventory across enabled EU fulfilment countries.

Amazon currently lists countries including:

• France;
• Germany;
• Italy;
• Spain;
• Poland

for Pan-European FBA inventory placement. Amazon explicitly warns that storing goods in additional countries creates additional VAT reporting/registration considerations.

So:

“I have one Amazon Europe account”

does not mean:

“I only have one VAT country.”

Inventory movement matters.

42. What Is Remote Fulfilment Between UK and EU?

Amazon also offers UK/EU cross-border fulfilment options that can allow sellers to fulfil cross-border orders from inventory stored in an existing location rather than necessarily storing stock in every destination country.

Amazon describes Remote Fulfilment as potentially reducing the need for storage and VAT registration in the destination, with Amazon handling VAT collection/remittance under the relevant programme.

This can materially affect the structure compared with local stock placement.

43. Belgium Founder Example

Consider:

Founder: resident Belgium
Company: UK Ltd
Management: Belgium
Inventory: Amazon UK warehouse
Customers: UK

Potential areas to examine include:

UK side

• Companies House;
• Corporation Tax;
• VAT;
• EORI/import;
• Amazon verification;
• banking.

Belgium side

• founder personal tax;
• remuneration/dividends;
• management location;
• foreign-company reporting or other Belgian requirements where applicable.

The fact that the company is incorporated in Britain does not make Belgium irrelevant.

Similarly, the fact that the founder lives in Belgium does not make UK inventory/import obligations disappear.

Obtain Belgian professional tax advice for the Belgium side.

44. France Founder Example

Possible structure:

French resident
→ owns UK Ltd
→ imports Chinese goods into UK
→ Amazon FBA UK

Again, the UK company may have UK accounting/tax/VAT/customs obligations while the individual can retain French personal-tax and foreign-company considerations.

If you already operate through a French company, compare using it against forming another company before proceeding.

45. Ireland Founder Example

Ireland creates an additional nuance because:

Ireland remains EU

while

Great Britain is outside the EU customs/VAT area in the ordinary post-Brexit framework.

Sending inventory from Ireland to Great Britain is not the same as moving stock domestically inside one EU member state.

Consider:

• customs;
• importer;
• VAT;
• UK stock;
• Irish tax;
• whether UK Ltd is genuinely necessary.

46. Spain and Italy Founder Examples

The same framework applies.

A Spanish or Italian founder can ask:

1. Who is the Amazon seller?
2. Where is that entity incorporated?
3. Where is it managed?
4. Where is stock stored?
5. Who imports the stock?
6. What VAT registrations are triggered?
7. How is the owner taxed personally?
8. Are EU inventory locations enabled?

The answer should be built from the transaction map, not from nationality alone.

47. UAE Founder Example

Suppose:

Founder residence: Dubai
Company: UK Ltd
Registered office: London
Management: Dubai
Supplier: China
Inventory: UK FBA
Customers: UK

Potential issues include:

• Companies House;
• UK VAT establishment analysis;
• VAT registration;
• EORI;
• importer-of-record;
• banking;
• UK Corporation Tax;
• UAE corporate/personal tax considerations depending on circumstances;
• substance and management.

A Dubai residence should be disclosed accurately during Amazon and banking verification.

Do not substitute the UK registered office for the founder’s UAE residential address.

48. Saudi Arabia and Oman Founders

The structural approach is similar.

For a Saudi or Omani resident, analyse:

home-country residence

• ●

entity

• ●

UK inventory

• ●

UK tax/VAT

• ●

local foreign-company/income obligations

• ●

banking/provider eligibility.

There is no universal rule saying:

“Middle East resident = use UK Ltd.”

The company should have a commercial reason.

49. India Founder Example

Indian residents need an additional compliance layer.

Beyond Amazon UK, they may need to consider:

• FEMA;
• RBI;
• overseas investment;
• remittance funding;
• Indian taxation;
• POEM;
• foreign asset/reporting requirements where relevant.

That is why Indian founders should also use our Complete UK Company Formation From India Guide⁠.

The Amazon structure should be consistent with the Indian funding and ownership structure.

50. Pakistan Founder Example

A Pakistani founder should similarly separate:

UK company law

from

UK Amazon/VAT/customs

from

Pakistani tax and foreign-exchange obligations.

Banking-provider eligibility can also differ by founder residence and should be assessed before building the entire company around one preferred fintech.

Do not incorporate first and discover the banking constraint later.

51. Malaysia Founder Example

A Malaysian resident can potentially operate internationally, but the same questions remain:

• entity;
• management location;
• Amazon seller eligibility;
• UK stock;
• VAT;
• customs;
• banking;
• Malaysian tax treatment.

A UK Ltd is a legal company, not a mechanism for erasing the owner’s local obligations.

52. Ghana, Nigeria and Other International Founders

The framework is universal even where local tax rules differ:

Where do you live?

Who owns the seller entity?

Where is it incorporated?

Where is it genuinely managed?

Where is inventory?

Where are customers?

Who imports?

Where does Amazon pay you?

Once those answers are mapped, the compliance structure becomes much easier to analyse.

53. Banking for Amazon FBA

Amazon requires a bank account for receiving sales proceeds. Its UK seller-registration materials list bank-account information among the core registration requirements.

But Amazon accepting a bank account and the bank accepting your business are separate questions.

A financial provider may assess:

• director residence;
• shareholders;
• Amazon/e-commerce activity;
• expected turnover;
• supplier countries;
• freight;
• refund levels;
• transaction currencies;
• source of inventory funding.

Before opening several applications, use our UK Business Banking Readiness Assessment⁠.

54. Wise, Revolut, Airwallex and Other Fintech Providers

These may be relevant to some international e-commerce companies.

But no provider should be described as:

“guaranteed for Amazon FBA.”

Eligibility can depend on:

• residence;
• company;
• activity;
• countries;
• ownership;
• expected transactions.

The better question is:

Which provider currently fits this specific founder and Amazon business?

For that reason, our Fintech & Banking Guidance⁠ focuses on readiness and provider suitability rather than guaranteeing approvals.

55. Foreign Exchange Can Destroy Margin

Suppose:

Supplier invoice: USD
Amazon revenue: GBP
Founder expenses: EUR

You now have:

USD → GBP → EUR

currency exposure.

When calculating profitability, include:

• conversion spread;
• bank/fintech FX charges;
• Amazon conversion where used;
• supplier payment cost.

A product that appears to have 25% margin may have considerably less after FX, freight, VAT and advertising.

56. Amazon FBA Unit Economics

Before ordering inventory, calculate:

Sale price

minus

VAT where applicable

minus

Amazon referral fee

minus

FBA fulfilment fee

minus

storage

minus

landed product cost

minus

advertising

minus

returns/refunds

minus

payment/FX overhead

minus

corporate overhead

=

Real contribution margin

Never use:

selling price – Alibaba price = profit.

That calculation is meaningless.

57. Landed Cost

Landed cost should include, where relevant:

• manufacturing;
• packaging;
• inspection;
• domestic freight at origin;
• international freight;
• insurance;
• customs broker;
• duty;
• import costs;
• prep;
• labelling;
• inbound Amazon freight.

This is the actual cost of getting a sellable unit into the fulfilment network.

58. FBA Fees Matter

Amazon charges different fees depending on variables including:

• selling plan;
• category;
• fulfilment;
• size;
• weight;
• storage;
• other services.

Amazon currently advertises the Professional plan at £25 excluding VAT per month plus selling fees and referral fees.

Do not hard-code a generic “Amazon takes 15%” into your business plan.

Use the relevant current Amazon fee calculator and category data.

59. 2026 FBA Logistics Surcharge

Amazon’s current UK/EU FBA materials state that from 17 April 2026, a 1.5% fuel and logistics-related surcharge applies to fulfilment fees across multiple European stores including the UK, France, Germany, Italy, Spain, Poland, Sweden, Netherlands, Ireland and Belgium. 

This is exactly why Amazon economics should be modelled using current fees rather than old YouTube examples.

60. Amazon Advertising

Launching inventory does not automatically create visibility.

Amazon advertising can become a material customer-acquisition cost.

Budget for:

• sponsored products;
• launch campaigns;
• keyword testing;
• conversion optimisation.

Do not treat advertising as “optional extra profit spending”.

For many products it belongs directly inside unit economics.

61. Product Compliance Is Not Optional

Amazon explicitly states that sellers must understand and comply with applicable product-safety and regulatory rules.

Non-compliant products can face:

• listing restrictions;
• listing removal;
• customs problems;
• account consequences.

Company formation does not make a product legal to sell.

62. Product Categories Requiring Extra Caution

Examples can include:

• electrical goods;
• toys;
• cosmetics;
• food/supplements;
• batteries;
• children’s products;
• PPE;
• medical-type products;
• chemicals;
• products making health claims.

Before ordering stock, identify:

1. applicable UK regulation;
2. testing;
3. labels;
4. warnings;
5. responsible-person requirements where relevant;
6. Amazon category requirements.

Compliance should happen before mass production.

63. UKCA, CE and Market-Specific Requirements

Product marking requirements depend on:

• product category;
• Great Britain vs Northern Ireland;
• applicable regulation;
• current transition rules.

Never ask a Chinese supplier only:

“Does it have CE?”

and assume the answer solves UK compliance.

Ask:

• which legislation applies;
• which test standard;
• who issued the report;
• whether the model tested is identical;
• which market the certification covers.

64. Responsible Person and EU Expansion

For certain regulated/CE-marked goods in EU markets, responsible-person requirements can apply.

Amazon states that non-EU brands selling relevant CE-marked products into the EU may need an EU Responsible Person and collects information for applicable FBA ASINs.

This becomes more important once you expand from:

Amazon UK

into:

France / Germany / Italy / Spain / other EU stores.

UK compliance should not automatically be copied into EU listings.

65. EPR — Extended Producer Responsibility

European Amazon sellers may also encounter EPR obligations involving:

• packaging;
• electronics/WEEE;
• batteries;
• other covered categories.

Amazon explains that EPR rules can vary by country and can apply to businesses placing products on a market even where the seller is not physically established there.

This is particularly relevant for Pan-European expansion.

66. Trademark and Brand Registry

If building a private-label Amazon business, brand protection should be considered early.

Amazon Brand Registry can provide additional brand-management and protection functionality for eligible trademark owners. Amazon recommends trademark protection/Brand Registry as part of the brand-owner journey.

Do not print 10,000 packages before checking:

• company name;
• trademark conflicts;
• domain;
• Amazon brand availability.

67. GS1, GTIN, EAN and Product Identifiers

New products may require recognised product identifiers.

Depending on product/listing circumstances, Amazon may use:

• GTIN;
• EAN;
• UPC;
• ASIN.

Amazon’s listing guidance notes that new products commonly require product identifiers and points sellers toward GS1-based identifiers, while some products may qualify for exemptions.

Do not buy random cheap barcodes without checking Amazon’s current requirements.

68. Insurance

As volume increases, Amazon may require or your risk profile may justify insurance.

Consider:

• product liability;
• public liability;
• commercial cover;
• cargo insurance.

The correct cover depends heavily on the product.

A phone case and a baby electrical product do not carry the same liability profile.

69. Returns and Refunds

Returns are not merely a customer-service issue.

They affect:

• margin;
• stock quality;
• cash flow;
• seller metrics;
• storage;
• disposal.

When selecting products, ask:

Why would someone return this?

Examples:

• wrong size;
• colour mismatch;
• broken on arrival;
• expectation mismatch;
• installation difficulty;
• compatibility.

High return rates can destroy apparently attractive products.

70. Cash Flow: The Hidden Amazon FBA Risk

Amazon FBA is inventory-intensive.

You may pay the supplier:

weeks or months before

Amazon pays you for the final sale.

Meanwhile, money is tied up in:

• manufacturing;
• sea freight;
• customs;
• stock;
• advertising.

Your next order may need funding before the first batch is fully sold.

Therefore distinguish:

profit

from

cash flow.

A profitable Amazon business can still run out of cash.

71. How Much Money Should You Start With?

There is no honest universal number.

Your required capital depends on:

• product cost;
• MOQ;
• freight;
• compliance/testing;
• VAT;
• duty;
• branding;
• inspection;
• photography;
• advertising;
• Amazon fees;
• cash reserve.

A £1,000 lightweight accessory launch is not comparable to an £18,000 private-label electronics launch.

Do the unit economics first.

Then determine capital.

72. Accounting for an Amazon FBA UK Ltd

Your accounting records should capture:

• Amazon sales;
• fees;
• VAT;
• refunds;
• advertising;
• inventory;
• supplier purchases;
• shipping;
• customs;
• import VAT;
• FX;
• bank transactions;
• director/shareholder funding.

Do not simply record the net Amazon payout as:

“sales.”

The net deposit can include multiple underlying gross-sales and fee movements.

73. Corporation Tax

A UK Ltd has UK corporate-tax obligations based on the applicable rules.

The fact that the owner lives abroad does not make the company automatically tax-free.

Equally, the owner’s home country can still matter.

For the wider framework, use our UK Company Tax for Non-Residents Guide⁠.

74. Home-Country Tax: The Rule Every International Seller Must Remember

Your Amazon business can have two or more tax layers.

Company level

Where the seller company is taxable.

Owner level

Where the shareholder/director lives and receives income.

Operational level

Where management, employees, warehouses or permanent establishments exist.

VAT/customs layer

Where products are imported, stored and sold.

These should not be collapsed into:

“My company is in the UK, so all taxes are UK taxes.”

International e-commerce does not work that way.

75. Should You Pay Yourself Salary or Dividends?

That depends on:

• company profits;
• director status;
• residence;
• local personal tax;
• UK payroll rules;
• treaty considerations;
• accounting.

Do not simply withdraw Amazon payouts and call them dividends.

Company money remains company money until properly distributed or otherwise paid.

76. Funding the Amazon UK Company

If you transfer personal money into the UK Ltd to buy first inventory, classify it properly.

It might be:

• share capital;
• director/shareholder loan;
• another legitimate form of financing.

Do not create unexplained large transfers.

Banks and accountants may later need to understand where initial capital came from.

77. What Happens After the UK Company Is Incorporated?

After incorporation, do not jump directly into ordering inventory.

Work through:

• Companies House records;
• identity verification;
• banking;
• bookkeeping;
• VAT analysis;
• EORI;
• Amazon verification;
• supplier agreement;
• product compliance;
• importer setup.

Our Post-Incorporation Checklist for Non-Resident UK Company Owners⁠ covers the broader first-year company obligations.

78. Amazon FBA UK Setup Sequence

For a non-resident founder, the cleaner sequence is:

Stage 1 — Strategy

Choose market, product and entity.

Stage 2 — Corporate

Set up the legal company if needed.

Stage 3 — KYC

Prepare Companies House, Amazon and banking information.

Stage 4 — Tax

Assess VAT and home-country implications.

Stage 5 — Customs

EORI, importer and commodity classification.

Stage 6 — Product

Supplier, samples, compliance, branding.

Stage 7 — Seller Central

Create and verify the Amazon business seller account.

Stage 8 — Production

Place controlled first order.

Stage 9 — Freight

Ship under a proper import structure.

Stage 10 — FBA

Receive stock and activate fulfilment.

Stage 11 — Launch

Listings, advertising, pricing.

Stage 12 — Operate

Accounting, tax, inventory and compliance.

That sequence is far safer than:

Company → Alibaba order → Amazon account → discover VAT problem.

79. 30-Day Readiness Checklist

Before ordering your first serious batch:

Company

• Seller entity selected
• Ownership accurate
• Companies House verification handled where relevant
• Registered office active
• Residential/operating address truthful

Amazon

• Seller account structure selected
• ID ready
• POA ready
• company documents ready
• bank information ready
• beneficial owners clear

Product

• demand researched
• competitors analyzed
• samples tested
• compliance requirements known
• trademark checked
• product identifiers planned

Supplier

• supplier verified
• price negotiated
• MOQ reasonable
• QC process agreed
• Incoterm understood

Tax/customs

• VAT analysis complete
• VAT registration initiated if required
• EORI ready where needed
• importer identified
• HS code reviewed
• landed cost calculated

Finance

• business account ready
• source of funds documented
• FX understood
• cash reserve available
• bookkeeping system ready

80. Common Mistakes Non-Resident Amazon Sellers Make

Mistake 1

Forming a UK Ltd without checking whether they need it.

Mistake 2

Assuming incorporation guarantees Amazon approval.

Mistake 3

Using the registered office as their residential address.

Mistake 4

Applying to Amazon with mismatched company details.

Mistake 5

Ordering inventory before VAT analysis.

Mistake 6

Shipping stock before obtaining EORI.

Mistake 7

Naming Amazon as Importer of Record.

Mistake 8

Believing the £90,000 VAT threshold always applies.

Mistake 9

Thinking UK incorporation automatically creates UK VAT establishment.

Mistake 10

Buying products before compliance testing.

Mistake 11

Using supplier certificates without checking what they cover.

Mistake 12

Calculating profit as sale price minus factory price.

Mistake 13

Ignoring advertising.

Mistake 14

Ignoring returns.

Mistake 15

Using old Amazon fee figures.

Mistake 16

Expanding into Pan-EU FBA without understanding additional VAT countries.

Mistake 17

Ignoring home-country taxation.

Mistake 18

Opening multiple banking applications before understanding eligibility.

Mistake 19

Putting all startup capital into inventory.

Mistake 20

Launching too many SKUs at once.

81. Can Amazon Suspend an Account Even After Verification?

Yes.

Initial verification does not guarantee permanent unrestricted selling.

Amazon compliance obligations continue.

Potential issues can arise from:

• identity/business-information changes;
• product authenticity;
• product safety;
• VAT;
• marketplace policy violations;
• listing accuracy;
• seller performance;
• customer complaints.

Keep company, Amazon, banking and product records current.

82. What Should You Do If Amazon Requests More KYC?

Read the request literally.

Determine whether Amazon is asking about:

• personal identity;
• residence;
• business address;
• legal entity;
• beneficial owners;
• bank;
• relationship to company.

Then provide evidence that answers that exact question.

Do not upload five unrelated documents hoping one works.

And never fabricate:

• utility bills;
• address evidence;
• company operations;
• ownership.

83. Do You Need a UK Warehouse Outside Amazon?

Not necessarily.

FBA can remove the need for your own traditional warehouse for Amazon orders.

But businesses sometimes use:

• prep centres;
• 3PLs;
• freight forwarders;
• consolidation warehouses;
• returns facilities.

Those providers serve different functions.

A registered office is not a warehouse.

A prep center is not your residential address.

A freight forwarder is not automatically Importer of Record.

Keep each role clear.

84. Amazon FBA and TikTok Shop Together

This is where the strategy becomes even more interesting.

A private-label founder may eventually use:

Amazon

for marketplace demand

• ●

TikTok Shop

for social commerce

• ●

Shopify

for owned customer acquisition.

The same underlying:

• UK company;
• supplier;
• VAT;
• EORI;
• inventory;
• bank;
• brand;

can support multiple channels where structured correctly.

This is why we treat Amazon FBA as an e-commerce infrastructure decision, not just an Amazon tutorial.

Our broader UK E-commerce Company for Non-Residents pillar should be internally linked here.

85. When You Should NOT Start Amazon FBA Yet

Delay launch if:

• you do not understand your product;
• supplier cannot provide credible compliance documentation;
• you do not know who imports inventory;
• you have not calculated landed cost;
• you do not know whether VAT applies;
• you have no working banking solution;
• Amazon verification data does not match your documents;
• all startup cash will be tied into one order;
• you are relying entirely on one influencer’s “winning product”.

Amazon FBA is a logistics and capital business as much as it is an online-sales business.

Frequently Asked Questions

Can a non-UK resident sell on Amazon UK?

Potentially yes, subject to Amazon’s current seller-registration eligibility and verification requirements.

Do I need a UK company for Amazon FBA?

Not automatically. Your existing foreign company may sometimes be appropriate.

Can a Belgian resident own a UK Ltd for Amazon?

Potentially yes, but Belgian tax and management implications should also be reviewed.

Can a French resident open a UK company for Amazon FBA?

Potentially yes. UK incorporation does not remove French obligations.

Can I run Amazon UK from UAE?

Potentially, subject to Amazon eligibility, entity structure, VAT, customs, banking and UAE/UK tax considerations.

Can an Indian resident start Amazon FBA UK?

Potentially, but FEMA/RBI, Indian taxation and overseas investment should be considered alongside UK requirements.

Does Amazon require a UK-resident director?

Do not confuse the UK company’s director-residence rules with Amazon’s seller-eligibility and verification requirements. Amazon verifies the actual business and connected individuals.

Do I need UK VAT for Amazon FBA?

Often where stock is held in the UK, but the exact answer depends on seller establishment and transaction structure. Overseas/NETP rules can apply without the ordinary threshold.

Is the VAT threshold £90,000?

That is the normal UK domestic compulsory-registration threshold, but it does not universally protect non-established taxable persons.

Does a UK Ltd automatically make me UK-established for VAT?

No. HMRC says incorporation, a virtual office or fulfilment warehouse alone may not establish genuine UK business establishment.

Do I need EORI for Amazon FBA?

If your business is importing goods into Great Britain, a GB EORI can be required.

Can Amazon be my Importer of Record?

No. Amazon states it will not act as the importer of record for FBA inventory.

Can my Chinese supplier be the importer?

That depends on the contractual/customs arrangement. Do not assume DDP automatically creates the correct structure.

Can I send Alibaba products directly to Amazon?

Operationally that can be possible, but first resolve inspection, prep, compliance, VAT, importer, EORI and customs.

Where can I find suppliers?

Channels include manufacturers, Alibaba, Global Sources, wholesalers, Faire, sourcing agents and trade fairs.

Should I use Alibaba’s cheapest supplier?

No. Price is only one component.

Should I order samples?

Yes, particularly before meaningful production.

What is MOQ?

Minimum order quantity.

What is landed cost?

The total cost of getting a sellable product into the destination inventory location, including relevant manufacturing, freight, import and preparation costs.

Can I sell in UK and EU from one Amazon account?

Amazon provides European marketplace integration, but inventory, VAT and compliance still need country-specific analysis.

Is the UK in Pan-European FBA?

No. Amazon confirms the UK is no longer part of Pan-European FBA following Brexit.

Do I need VAT in every EU country?

Not simply because you list there. But storing/moving inventory into additional EU countries can create additional VAT registrations/reporting.

Can Amazon collect VAT for me?

Amazon can be liable for VAT on certain marketplace transactions, but this does not automatically remove all seller VAT/import obligations.

Do I need product insurance?

It depends on product, sales level, Amazon requirements and risk profile.

Do I need a trademark?

Not simply to sell every product, but private-label founders should strongly consider brand/IP strategy. Brand Registry has its own eligibility requirements.

Does a UK company guarantee Amazon verification?

No.

Does Amazon accept virtual addresses?

Amazon determines evidence requirements through its own verification framework. Do not represent a virtual/registered office as a genuine residential or operating address where it is not.

Does Amazon accept fintech bank accounts?

Eligibility depends on Amazon’s current deposit-method rules and the provider/account. Verify before relying on any particular fintech.

Can Amazon FBA make passive income?

FBA automates fulfilment, not the business itself. Product, inventory, advertising, compliance, tax and cash-flow management remain active responsibilities.

Amazon FBA for Non-Residents: The Structure That Should Make Sense

A professionally structured Amazon FBA business should be able to answer seven questions clearly.

1. Who owns the business?

Documented.

2. Where does the founder genuinely live?

Truthful.

3. Which company is the Amazon seller?

Clear.

4. Where is inventory stored?

Known.

5. Who imports the inventory?

Defined.

6. What taxes/VAT registrations apply?

Reviewed.

7. Where does Amazon pay the money?

A suitable business account.

If those answers are coherent, the rest of the business becomes far easier to manage.

How Seven Oak Prestige Can Support an International Amazon FBA Structure

Seven Oak Prestige supports international entrepreneurs with the corporate and compliance infrastructure surrounding a UK e-commerce operation, including:

• UK company formation;
• registered office;
• director service address;
• Companies House identity verification;
• ownership/director structuring;
• banking and fintech readiness;
• VAT registration;
• EORI registration;
• post-incorporation guidance.

We do not promise:

• Amazon account approval;
• banking approval;
• a “winning product”;
• guaranteed Amazon sales.

The objective is to help establish the underlying company and compliance structure correctly.

If you are still deciding whether to use a UK company, start with our UK Company Formation for Non-Residents Guide⁠.

If the UK company has already been incorporated, use our Post-Incorporation Checklist⁠.

For company tax, use our UK Company Tax for Non-Residents Guide⁠.

For banking preparation, use our UK Business Banking Readiness Assessment⁠.

For imports, see our EORI Registration Service⁠.

For VAT, see our UK VAT Registration Service⁠.

Ready to Build Your Amazon FBA UK Structure?

The first question should not be:

“How quickly can I register a UK company?”

It should be:

“What structure allows my Amazon business to source, import, sell, bank, account for VAT and remain compliant?”

That is the difference between merely creating an Amazon account and building a scalable international e-commerce business.

Review My Amazon FBA UK Setup

Important Notice

This guide provides general business information and does not constitute personalized:

• tax advice;
• customs advice;
• legal advice;
• accounting advice;
• product-safety advice;
• financial advice.

Amazon policies, seller eligibility, fees and marketplace requirements can change.

VAT, corporate tax and personal tax also depend on the exact facts and relevant jurisdictions.

International sellers should obtain country-specific professional advice where required, particularly for cross-border taxation, product regulation and complex customs arrangements.

About the Author

Isaac Jackson is Founder & Managing Director of Seven Oak Prestige Ltd, supporting international entrepreneurs with UK company formation, Companies House compliance and business banking readiness.

Contact Seven Oak Prestige Ltd

Email: contact@sevenoakprestige.com

WhatsApp: +44 7447 488755

UK Office: +44 2045 780726