Selling on Amazon is a fast-moving business — and your tax obligations move just as quickly. Whether you’re a private label seller in London, an FBA seller in Manchester, or a wholesale seller sourcing products globally, your tax situation is unique and requires specialist understanding of Amazon’s ecosystem.
Selling on Amazon is a fast-moving business — and your tax obligations move just as quickly. Whether you're a private label seller in London, an FBA seller in Manchester, or a wholesale seller sourcing products globally, your tax situation is unique and requires specialist understanding of Amazon's ecosystem.
We specialise in Self Assessment for Amazon sellers, understanding the specific challenges you face: from FBA fees and Amazon advertising costs to inventory management and cross-border VAT. Our ACCA-qualified accountants ensure you navigate the complexities of Amazon selling with confidence and claim every allowable expense you're entitled to.
Fixed-fee service available — no surprises, just expert support tailored to your Amazon business.
Whether you're selling in the UK, across Europe, or globally, our specialist accountants understand the nuances of Amazon selling. We help all types of Amazon sellers with their Self Assessment returns:
Key considerations: Product sourcing, branding costs, and Amazon advertising expenses
Key considerations: Bulk purchasing, import duties, and inventory management
Key considerations: FBA fees, storage costs, and inventory tracking
Key considerations: Shipping costs, packaging materials, and courier fees
Key considerations: Foreign income, cross-border VAT, and currency exchange
Key considerations: Raw material costs, production time, and creative expenses
Amazon sellers face a unique set of tax challenges that generic accountants often miss. Here are the most common issues we help Amazon sellers resolve:
Amazon sellers pay a wide range of fees to Amazon: FBA fulfilment fees, referral fees, storage fees, advertising fees, and account subscription fees. Many sellers don't track these costs correctly or miss out on claiming them as deductible expenses.
We help you track and claim all Amazon fees, ensuring you're not paying tax on costs that should be deducted. This includes FBA fees, Amazon advertising spend, monthly account fees, and returns processing costs.
Your inventory is your biggest asset and your biggest expense as an Amazon seller. You need to correctly calculate your Cost of Goods Sold (COGS) — the cost of products sold during the tax year — to accurately deduct them from your income.
We help you track inventory costs, including product purchase costs, shipping costs to Amazon FBA centres, customs duties, and import fees. Proper inventory accounting ensures you pay the correct amount of tax.
Many Amazon sellers spend thousands on PPC advertising, sponsored products, and sponsored brands. These are fully deductible business expenses, but many sellers fail to track them correctly or claim them on their tax returns.
We ensure you claim all Amazon advertising costs as deductible expenses, helping you maximise your tax deductions. This includes campaigns run through Amazon's advertising console and external advertising platforms.
Amazon sellers use a variety of tools and software to manage their business: Jungle Scout, Helium 10, Seller Central, InventoryLab, Repricer, and more. These subscriptions are tax-deductible but often missed.
We help you claim all software and tool subscriptions as allowable expenses, including keyword research tools, repricing software, inventory management systems, and analytics platforms.
Amazon sellers selling across Europe face complex VAT obligations. Amazon collects VAT on sales through the marketplace, but you still need to register for VAT if your UK sales exceed £90,000 (2026/27 threshold) . You may also need to register in other EU countries for sales above distance selling thresholds.
We advise on VAT registration, VAT returns, and cross-border VAT compliance to keep you compliant with HMRC and European tax authorities.
HMRC's trading allowance allows individuals to earn up to £1,000 per tax year from self-employment income completely tax-free, with no need to register for Self Assessment . Many part-time Amazon sellers start out under this threshold.
We help you understand whether the trading allowance applies to your situation and ensure you're registered for Self Assessment if your income or profit exceeds the threshold.
Amazon charges storage fees for inventory stored in their fulfilment centres. Long-term storage fees apply for inventory stored for more than 365 days. These fees can be significant, especially for sellers with slow-moving inventory.
We help you track and claim storage fees as business expenses, and advise on inventory management strategies to minimise these costs.
Amazon sellers have multiple tax deadlines to manage: Self Assessment, VAT returns, and potentially Corporation Tax if operating through a limited company. Missing any of these deadlines can result in automatic penalties.
We help you stay on top of all your tax deadlines, ensuring you never miss a filing date. Our deadline checker can help you keep track of key dates, and we handle all submissions on your behalf.
We start by understanding your Amazon business model — whether you're a private label seller, wholesale seller, or arbitrage seller — and what your sales volumes and expenses look like.
We'll guide you on exactly what documents you need for your tax return — including Amazon transaction reports, FBA fee statements, advertising spend reports, and inventory purchase records.
We'll identify every allowable expense unique to Amazon selling — from FBA fees and advertising costs to software subscriptions and packaging materials.
We'll calculate your Cost of Goods Sold (COGS), ensuring you're correctly deducting inventory costs and not paying tax on unsold stock.
Our ACCA-qualified accountants prepare your Self Assessment return, double-check all calculations, and submit it to HMRC before the deadline.
Tax doesn't end with the return. We provide year-round support for tax planning, penalty avoidance, and strategic advice to help you grow your Amazon business tax-efficiently.
James is a private label Amazon seller based in Manchester, selling home and kitchen products across the UK and Europe. He uses FBA and runs PPC campaigns to generate sales. His income breakdown for 2025-26 was:
James approached us because he was unsure about his tax obligations — he had been selling on Amazon for two years but had never filed a Self Assessment. He was confused about what expenses he could claim and whether he needed to register for VAT.
He had been tracking his expenses in a basic spreadsheet but wasn't confident it was accurate. He was also concerned about potential penalties for not registering for Self Assessment earlier.
“I had no idea I could claim so many expenses as an Amazon seller. The team at Right Tax Returns explained everything clearly — from FBA fees to PPC costs and software subscriptions. They even helped me file backdated returns for the last two years. I now have peace of mind that my tax affairs are in order.”
— James, Private Label Amazon Seller
💰 Total tax saved through our advice: £3,200
Note: Corporation Tax rates have changed, making tax planning more important than ever for Amazon sellers operating through limited companies.
Key change: The VAT threshold remains at £90,000 for 2026/27. However, Amazon sellers with sales across Europe need to be aware of EU VAT rules and OSS (One Stop Shop) reporting.
Important: Sole trader Amazon sellers pay Class 2 and Class 4 National Insurance. Directors of limited companies pay NI on salary but not on dividends.
Tip: Amazon sellers have multiple deadlines. Our deadline checker can help you stay on track.
Do I need to file a Self Assessment as an Amazon seller in the UK?
Yes, if you sell on Amazon as a sole trader, through a limited company, or have income from Amazon FBA or FBM, you must file a Self Assessment. Even if you're selling part-time, you need to register if your profits exceed the trading allowance of £1,000 .
What expenses can Amazon sellers claim on their tax return?
Amazon sellers can claim FBA fees, Amazon advertising costs, product costs, shipping and fulfilment expenses, software subscriptions (e.g., Jungle Scout, Helium 10), home office costs, storage fees, and professional photography expenses . Many sellers miss out on claiming these essential deductions.
What is the difference between FBA and FBM for tax purposes?
FBA (Fulfilment by Amazon) sellers have expenses related to Amazon's fulfilment centres, including storage fees and FBA fulfilment fees. FBM (Fulfilment by Merchant) sellers handle their own shipping, so they can claim postage costs, packaging materials, and courier fees. Both models require different expense tracking.
Do Amazon sellers need to pay VAT?
If your Amazon sales exceed £90,000 (2026/27 threshold), you must register for VAT. Even below this threshold, voluntary registration can be beneficial to reclaim VAT on business expenses. Amazon collects VAT on sales through the marketplace, but you still need to file returns if registered.
What is the deadline for Amazon sellers to file Self Assessment?
The online Self Assessment deadline is 31 January 2027 for the 2025-26 tax year. If you're filing a paper return, the deadline is 31 October 2026. We strongly recommend filing online by 31 January to avoid late filing penalties.
Can Amazon sellers claim inventory costs as an expense?
Yes, you can claim the cost of products purchased for resale as a deductible expense. This includes product costs, import duties, customs fees, and shipping costs to get products to Amazon's fulfilment centres. You only deduct the cost of inventory sold during the tax year.
What is the trading allowance for Amazon sellers?
HMRC allows every individual to earn up to £1,000 per tax year from self-employment income completely tax-free, with no need to register for Self Assessment . If your Amazon sales exceed £1,000 (or profits exceed £1,000), you must register and declare all income.
Can Amazon sellers claim Amazon advertising costs?
Yes, all Amazon advertising costs, including PPC campaigns, sponsored products, sponsored brands, and sponsored display ads, are fully deductible business expenses. You should keep records of your Amazon advertising spend for tax purposes.
We understand the unique tax landscape for Amazon sellers — from FBA fees and PPC costs to inventory accounting and cross-border VAT. Our team is trained in e-commerce tax matters, not just generic self-employment.
Unlike traditional high-street accountants who charge by the hour, we offer fixed pricing for our services. You know exactly what you're paying before we start work. No hidden fees, no unexpected bills.
All our returns are prepared and reviewed by ACCA-qualified accountants. You're not relying on an automated system or an unqualified assistant — you get professional expertise every step of the way.
With our fixed-fee model, you can ask as many questions as you need — without being charged for every email or phone call. We're here to support you throughout the year, not just during tax season.
We guarantee to file your return before the deadline. We'll never leave your return to the last minute, and we'll always keep you informed of our progress.
If HMRC questions your return, we handle all correspondence on your behalf. You don't have to face HMRC alone — we're your advocate and tax partner.
Ready to take the stress out of your Self Assessment?
Join hundreds of satisfied Amazon sellers who trust us with their tax returns. Our ACCA-qualified team understands the unique tax challenges you face — and we'll ensure your return is accurate, complete, and filed on time.
How it works: Complete our online form → Make advance payment → We handle your return with HMRC
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📞 Have questions? Contact our specialist Amazon seller tax team
We're qualified UK accountants who specialise in Self Assessment tax returns.
Our mission is simple: provide professional, accurate tax return preparation
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