u/AbiesAnxious3212

Hi everyone, I’ve recently set up a UK LTD and am preparing to sell on Amazon UK using FBA.

I’ll be importing products from China and storing them in UK FBA warehouses. The business is managed from the UK and my expected turnover is well below the £90k VAT threshold.

I’m currently deciding whether to register for VAT voluntarily.

My understanding is:

• VAT registered: I have to account for VAT on sales, but can reclaim eligible VAT such as import VAT and VAT on certain business expenses.
• Not VAT registered: I keep the full selling price, but cannot reclaim VAT on costs.

For UK Amazon FBA sellers who started below the threshold, did you register voluntarily? Was it actually worth it, or did it hurt your profit margins?

Would really appreciate hearing from sellers with similar experience. Thanks!