If you are a UK-based Amazon FBA (Fulfillment by Amazon) seller in the US, you may be subject to UK tax on the income you earn from your Amazon sales. Whether or not you are required to pay UK tax will depend on your residency status, the type of Amazon sales you make, and the tax treaty between the UK and the US.
As a general rule, residents of the UK are subject to UK tax on their worldwide income, including income from Amazon sales. If you are a UK resident and earn income from Amazon sales in the US, you will be required to pay UK tax on that income at the applicable rates. For example, if you earn income from Amazon sales, you will be subject to UK income tax on that income at the rates that apply to residents.
However, the tax treaty between the UK and the US may affect your UK tax liability. The tax treaty specifies which country has the right to tax certain types of income, and at what rates. For example, the tax treaty may specify that the US has the right to tax income from Amazon sales, and that the UK cannot tax that income.
In order to determine your UK tax liability as a UK-based Amazon FBA seller in the US, you will need to determine your residency status, the type of Amazon sales you make, and the applicable tax rates. You will also need to consider the tax treaty between the UK and the US, and any other relevant factors.
If you are required to pay UK tax on income from Amazon sales, you will need to file a tax return with HM Revenue and Customs (HMRC), the UK tax authority. This will typically involve completing a self-assessment tax return, which will require you to provide details of your Amazon sales, income, expenses, and other relevant information. You will need to file your tax return by the applicable deadline, which is typically 31 January following the end of the tax year.
In addition to income tax, you may also be required to pay other UK taxes as a UK-based Amazon FBA seller in the US. For example, you may be required to pay UK national insurance contributions on your Amazon sales income, and UK value-added tax (VAT). Please contact us for further information and a customised solution to your situation.
Follow our Instagram @Nomadsaccountinguk or contact us to [email protected] for financial strategies and advice to help grow your business.