VAT returns for online sellers, built from reconciled payouts.
Each quarter's VAT return prepared from books that match every payout, with platform fees, import VAT and exports in the right boxes. You approve it, then we file it with HMRC through Making Tax Digital software. In the Growth plan, £179 a month.
- Making Tax Digital for VAT
- Import VAT and platform fees handled
- Growth plan, £179 a month
In short
Every VAT-registered business keeps digital records and files its VAT returns using Making Tax Digital software, with digital links between them. For a seller, the work is in the detail: fees from overseas platforms may need the reverse charge, import VAT can be accounted for on the return, and exports need evidence to be zero-rated.
Digital records, joined by digital links.
- Each sale recorded with its time, net value and VAT rate
- Each purchase recorded the same way
- A VAT account summary that ties the records to the return
- Digital links between them: GOV.UK does not count cut and paste as one
VAT records are kept for at least 6 years. Invoices themselves do not have to be digital.
Fees from overseas suppliers may need the reverse charge.
When a supplier outside the UK sells a service to a UK business, the UK business may need to account for the VAT itself under the reverse charge: output tax on the full value, reclaimed as input tax where allowed, with entries in Boxes 1, 4, 6 and 7.
Whether that applies to your marketplace, advertising or software fees depends on which company issues each invoice. We check your invoices, so each fee is treated correctly.
Not registered yet? Reverse-charged services you buy from overseas count towards your £90,000 VAT threshold. How the threshold is counted.
Stock from abroad, and sales going abroad.
Postponed import VAT
VAT-registered businesses can declare and reclaim import VAT on the same VAT return, with no approval needed. We match it to your monthly postponed VAT statements.
Customs and commodity codes
Imports need a GB EORI number, and the commodity code on the declaration sets the rate of duty. Most importers use a transporter or customs agent.
Export evidence
Goods sent abroad can be zero-rated with evidence of export, obtained within 3 months of the sale and kept for 6 years.
The Flat Rate Scheme suits some sellers, not all.
| Item | GOV.UK figure |
|---|---|
| Join if taxable turnover is expected to be | £150,000 or less, excluding VAT |
| Retailing not listed elsewhere | 7.5% |
| Retailing food, confectionery, tobacco, newspapers or children's clothing | 4% |
| First year of VAT registration | 1% discount |
| Limited cost business | 16.5% |
| Leave when income including VAT is over | £230,000 |
On the scheme you cannot reclaim VAT on purchases, apart from certain capital assets over £2,000. That includes VAT on fees, advertising and software, so we model both ways with your own figures before you choose.
Late returns build up penalty points.
For VAT periods starting on or after 1 January 2023, each late return earns a penalty point. A quarterly filer who reaches 4 points pays a £200 penalty. Monthly books and an approval step each quarter keep returns on time.
VAT returns are in the Growth plan.
Need to register first? VAT registration is £99. Selling at higher volume on more channels? Scale is £349 a month, with monthly management reports.
Your quarterly VAT returns, with your monthly books
- Monthly bookkeeping with payout reconciliation
- Inventory and cost of goods sold
- Each quarter's VAT return, prepared in MTD software
- Your approval, then we file it with HMRC
Prices in pounds sterling (GBP). The UK VAT treatment of our fees is shown on your invoice.
Just need one job done?
Keep your own records? We prepare each quarter's VAT return from them in MTD software, and you approve it before we file. Want your books kept too? Growth at £179 a month includes both.
VAT returns only
- Each quarter's VAT return, prepared in Making Tax Digital software
- Your sales checked against your marketplace payout reports
- Marketplace fees and imports checked for the right VAT treatment
- Your approval, then we file it with HMRC
Prices in pounds sterling (GBP). The UK VAT treatment of our fees is shown on your invoice.
VAT questions from online sellers.
Answered from the GOV.UK pages listed under Sources, with the date we read them.
Does the marketplace pay my VAT?
The marketplace rules on GOV.UK are written for overseas sellers. A UK-established seller accounts for VAT on its own UK sales.
Are Amazon and eBay fees reverse-charged?
They may be. It depends on which company issues each invoice. We check your fee invoices and book each one correctly.
Can I reclaim VAT on stock I import?
If you are VAT-registered, yes. You can account for import VAT on your VAT return with postponed VAT accounting, or claim it back using the C79 certificate.
Is the Flat Rate Scheme a good idea for a seller?
It depends on your figures. Most goods sellers fall under 'retailing not listed elsewhere' at 7.5% (4% for food, confectionery, newspapers or children's clothing), or 16.5% as a limited cost business, and you cannot reclaim VAT on most purchases. We model it with your own numbers.
What records does Making Tax Digital need?
Digital records of your sales and purchases, a VAT account, and digital links between them, kept in compatible software for at least 6 years.
What does it cost?
VAT returns are included in the Growth plan at £179 a month, with monthly bookkeeping and inventory. VAT registration is £99.
Sources
- GOV.UK: VAT Notice 733, Flat Rate Scheme for small businesses · read 17 Oct 2026
- GOV.UK: VAT Notice 700/22, Making Tax Digital for VAT · read 17 Oct 2026
- GOV.UK: VAT record keeping · read 17 Oct 2026
- GOV.UK: Record keeping for VAT (VAT Notice 700/21) · read 17 Oct 2026
- GOV.UK: VAT Notice 741A, place of supply of services · read 17 Oct 2026
- GOV.UK: Register for VAT — Calculate your VAT taxable turnover · read 17 Oct 2026
- GOV.UK: Check when you can account for import VAT on your VAT Return · read 17 Oct 2026
- GOV.UK: Import goods into the UK: step by step · read 17 Oct 2026
- GOV.UK: VAT on goods exported from the UK · read 17 Oct 2026
- GOV.UK: VAT Flat Rate Scheme — Who can join · read 17 Oct 2026
- GOV.UK: VAT Flat Rate Scheme — How much you pay · read 17 Oct 2026
- GOV.UK: Penalty points and penalties if you submit your VAT Return late · read 17 Oct 2026
- GOV.UK: VAT and overseas goods sold to customers in the UK using online marketplaces · read 17 Oct 2026
Tell us your channels and VAT quarters. You'll get a price in writing.
A 20-minute call or a short email, then a written quote for your books and each quarter's return.
A written quote before any work starts
Hours: Monday to Friday, 9am to 5pm UK time.