FAQs

Expanding into the UK and EU MarketPlace

Why should I expand into the UK and EU?

As an FBA trader, expanding your existing business is the next sensible step. By expanding into the UK you have access to five EU countries through your UK account – UK, Germany, France, Spain and Italy.

The UK shares the same language as the US and the product categories and restricted lists are almost identical. This makes the UK the logical place to start!

How can I expand into the UK and EU?

There are two main options to explore when looking to expand. You can use your existing business entity or you can set up a UK company to trade within Europe.

Using your existing business entity

How do I expand using my existing business entity?

By setting up using your existing business entity you will be a foreign company operating in an overseas marketplace. You must register your business for VAT before you start to trade. You will also need to apply for an EROI number.

What is VAT and how long does it take to register?

VAT (Value Added Tax) is simply a sales tax that you collect on behalf of the customer and pay to the Government. It is different to sales tax as the price the customer pays includes VAT. VAT is normally 20% in the UK, however rates can very depending on the product. To register your existing business entity for VAT can take up to 5 weeks.

What is an EROI number and how long does it take to get one?

EROI (Economic Operator Registration and Identification number) is used for shipment to the UK with a customs value of over $800. To obtain an EROI number takes up to three working days.

How do I setup my UK Seller Central?

When setting up your UK Seller Central you may need a UK address, especially if you are supplying goods via FBM. You will not need this if selling through FBA. You will need to use a different email address to your existing Seller account and you will also need to provide your VAT number.

How will I receive funds from my UK and EU sales?

As your sales will be made in the UK or EU, sales will be in GBP and Euro’s. Your fortnightly disbursements will be made to your existing business account and converted into your home currency. ACCS conversion fees will apply – this can be between 3.5-6%.

Expanding by setting up a UK limited company

How do I expand by setting up a UK limited company?

You will need to register your company at Companies House UK. Registration can take a little as 48 hours. Once your UK limited company is registered you will need to apply for an EROI number.

What is an EROI number and how long does it take to get one?

EROI (Economic Operator Registration and Identification number) is used for shipment to the UK with a customs value of over $800. To obtain an EROI number takes up to three working days.

How will I receive funds from my UK sales?

As a UK limited company we can open you a UK business account to trade within Europe. As your sales will be in GBP, this can save you money on currency exchange as funds wil be disbursed into your UK account without the need to exchange them.

How do I set up my UK Seller Central?

When setting up your UK Seller Central you will need to upload documents to confirm your UK limited company and your UK business account details. This will all be provided to you. You will need to use a different email address to your existing Seller account.

Banking

What do I need to provide to apply for a UK business account?

You will need to have a UK Limited Company and provide notarized formal identification and notarized proof of address.

How long will it take?

The application process is simple and once we have received all the required documentation the process could take as little as 24 hours.

Can my UK business account be linked to my Seller Central?

Yes, once your business account has been approved you will be provided with a PDF copy of your statement so that you can upload this to your Seller Central. Other account confirmation documents are available should they be needed.

Will my UK business account be in my business name?

Yes. The account will be setup in your UK limited company name.

Can I send international payments?

Yes. You will be able to send international payments from the account provided. We can also set up an International Payment account that offers preferential exchange rates.

How much does it cost?

The fee for opening a UK business account starts from £499. Promotions may vary – contact us for more information. This fee is payable upon application, should your application be unsuccessful you will be refunded in full.

UK & EU Tax and VAT

What is VAT?

VAT – Value Added Tax – is a sales tax that you collect from the customer and pay to the Government. It is different to other sales taxes, as the price the customer pays includes VAT.

When do I need to register for VAT?

When selling through a non European company you will need to register for VAT before you to start to sell. There are other rules that apply to European companies.

How much is VAT and how often do I need to pay?

VAT can differ depending on where your inventory is held. In the UK VAT is 20%, however there are other rates depending on the type of product. In the UK VAT is paid to the Government every quarter.

Do I have to pay out 20% to the Government on all sales?

VAT is a complex tax. As well as collecting VAT on sales, you can claim back any VAT paid out on goods imported and purchases. The amount of VAT owed is worked out by taking the amount of VAT on all sales in the quarter and deducting the amount of VAT paid out on purchases in the quarter.

Inventory Funding

Can I apply for inventory funding through my existing business entity?

Inventory funding is only available to UK limited companies who have a UK business account.

Can I apply for inventory funding as a non-UK resident?

Inventory funding is currently available to UK and US residents.

How do I qualify?

You must have at least 1 years trading history in the US and a minimum annual turnover of £100,000. Non EU business activity is also considered.

How are repayments made?

Repayments are only made when you start to sell and will be taken out of your fortnightly disbursements.

Can I take a break from my repayments?

Yes, payment holidays are available to help boost cash flow for your business.