by Ariful | Feb 26, 2026 | UK Updates
New HMRC Security Measures: The ‘0990’ Requirement
HMRC has stepped up its game to fight fraud. As of late January 2026, there is a new hurdle for anyone registering for VAT. If you are a new seller or moving your business structure, you must take note of the VAT registration application reference number.
This number, which always starts with ‘0990’, is now a mandatory requirement when you enroll for VAT services on your online business tax account. Why the change? Fraudsters were previously intercepting legitimate VAT numbers and opening accounts before the actual business owners could. This caused massive headaches and delays in getting VAT returns filed.
By requiring the ‘0990’ reference, HMRC ensures that only you—the rightful owner—can access your online services.
Pro Tip: Keep this number safe. If you lose it, the recovery process can be tedious. If we are handling your VAT return services, make sure to forward this reference to us immediately so we can get your digital dashboard synced without delay.
VAT Obligations for Direct Ecommerce Sales
If you are a non-UK seller or a UK business selling directly to customers through your own website, the rules around the £135 threshold remain the “golden rule.”
For Orders Under £135
When you sell goods to a UK customer and the total value is £135 or less, you must charge VAT at the point of sale (the checkout). You are then responsible for reporting and paying this VAT to HMRC via your quarterly return. This is why having expert ecommerce accountants is vital: calculating these micro-transactions across thousands of orders is a recipe for a headache if you don’t have the right software integrations.
For Orders Over £135
When the order value exceeds £135, the rules shift. Standard import VAT and potentially customs duties apply. Usually, the customer (the importer of record) pays these to the courier before delivery, unless you have opted for a “Delivered Duty Paid” (DDP) shipping model.
Managing the difference between these two categories is essential. If you get it wrong, your customers might be hit with unexpected “handling fees” from Royal Mail or DPD, which leads to bad reviews and returned items.
The Marketplace Effect: Selling on Amazon and eBay
If you primarily sell through Online Marketplaces (OMPs) like Amazon, eBay, or Etsy, your VAT life is slightly simpler, but you still have responsibilities.
For goods stored in the UK and sold by non-UK sellers, the marketplace is generally responsible for collecting and remitting the VAT to HMRC for orders under £135. However, don’t let this lull you into a false sense of security. You still need to maintain impeccable records. HMRC can, and will, audit your marketplace reports to ensure the “deemed supplier” rules are being followed correctly.
Understanding the difference between B2B and B2C business models is also crucial here. If you sell to another UK business (B2B), the marketplace rules might not apply in the same way, and you may need to issue a full VAT invoice.
EU Businesses Selling to the UK: The Reverse Charge Exemption
Are you an EU-based business shipping to UK customers? There is an important distinction to remember regarding the reverse charge exemption.
Registered EU businesses can often remove VAT from the checkout when selling to UK businesses that provide a valid VAT number. This keeps the B2B trade flowing smoothly. However, remember that this exemption is a “one-way street” in this specific context: it applies to EU-to-UK shipments.
If you are a UK business selling back into the EU, you have to navigate the EU’s IOSS (Import One-Stop Shop) rules, which are the mirror image of the UK’s £135 rules.
Looking Ahead: Mandatory E-Invoicing in 2029
The UK government is moving toward a fully digital tax ecosystem. While “Making Tax Digital” (MTD) is already here for VAT, the next big leap is mandatory e-invoicing.
The government has confirmed that by 2029, all VAT invoices must be digital. This means no more PDF invoices sent via email that require manual entry. Instead, software will “talk” to software using a standardized format.
What should you do now?
- Stay Informed: Keep an eye on the “Budget 26” announcements. The government will publish a roadmap later this year.
- Audit Your Tech: Are you still using spreadsheets? It’s time to move to cloud-based systems like Xero or QuickBooks.
- Consult Your Accountant: We are already prepping our clients for this transition. Being early adopters will save you from the 2029 scramble.
Essential VAT Rate Reminders
It sounds basic, but applying the wrong VAT rate is one of the most common reasons for HMRC penalties.
- Standard Rate (20%): Most ecommerce goods (electronics, fashion, home goods).
- Reduced Rate (5%): Specific items like children’s car seats or certain energy-saving materials.
- Zero Rate (0%): Most books, children’s clothes, and most food items.
Double-check your Shopify or Amazon tax settings. If you accidentally charge 0% on a 20% item, that 20% comes out of your profit margin when HMRC comes knocking.
Why Ecommerce Sellers Trust Their Accountants
Navigating UK tax isn’t something you have to do alone. Specialists in ecommerce help entrepreneurs scale without the fear of an HMRC audit. From setting up your UK limited company accounting to managing complex cross-border VAT returns, the right support offers the tools and expertise you need.
Don’t worry about the complexities of “deemed supply” or “reverse charges.” Focus on sourcing great products and growing your brand. Let your accountant handle the numbers.
by Ariful | Feb 26, 2026 | EU VAT Updates
The 2026 Landscape: Why Sweden VAT Matters Now
Sweden remains one of the most structured tax environments in the world. For 2026, Skatteverket has tightened its grip on digital fraud while simultaneously raising thresholds to help smaller businesses breathe. If you are selling to Swedish consumers (B2C) or businesses (B2B), you need to know exactly where you stand to avoid hefty penalties.
At Sterlinx Global Ltd, we help sellers manage these complexities every day. From initial registration to monthly filings, our goal is to keep you selling while we handle the paperwork.
Do You Need to Register? Understanding the 2026 Thresholds
The first question every seller asks is: “When do I actually have to start paying Swedish VAT?”
In 2026, the rules depend heavily on where your business is established and how much you are selling.
1. The Domestic Registration Threshold
For businesses established in Sweden, there is good news. The VAT registration threshold has been increased to SEK 120,000. If your annual turnover stays below this limit, you aren’t required to register for VAT. However, keep a close eye on your growth; once you cross that line, you must notify Skatteverket immediately.
2. The EU Distance Selling Threshold (OSS)
If you are an EU-based seller shipping goods to Sweden, you likely fall under the One-Stop Shop (OSS) rules. The EU-wide threshold is €10,000.
- Below €10,000: You can charge the VAT rate of your home country.
- Above €10,000: You must register for OSS and charge the Swedish VAT rate (usually 25%) on all sales to Swedish customers.
3. Non-EU Sellers and IOSS
For our friends selling from outside the EU (like the UK or USA), the Import One-Stop Shop (IOSS) is your best friend for consignments under €150. It simplifies the process at the border and ensures your customer isn’t hit with unexpected “handling fees” upon delivery.
Swedish VAT Rates in 2026: What to Charge
Charging the wrong rate is one of the fastest ways to trigger an audit. Sweden has three primary rates that you need to program into your checkout:
- Standard Rate (25%): This applies to the vast majority of goods and services, including clothing, electronics, and most household items.
- Reduced Rate (12%): Primarily for foodstuffs, hotels, and some artistic items.
- Super-Reduced Rate (6%): This applies to books (including e-books), newspapers, passenger transport (like taxis), and certain cultural events.
Pro Tip: For 2026, the Swedish government has introduced a temporary reduction for specific food categories to 6% to combat inflation. Always check the specific category of what you are selling to ensure you aren’t overcharging your customers or underpaying the taxman.
The Marketplace Facilitator Rules
Are you selling on Amazon or eBay? Then the “Marketplace Facilitator” rules apply to you. In many cases, the marketplace is responsible for collecting and remitting the VAT on your behalf if you are a non-EU seller. However, this does not always exempt you from needing a VAT number.
Holding stock in a Swedish warehouse (like an Amazon FBA center in Sweden) almost always triggers an immediate requirement for a local Swedish VAT registration, regardless of your sales volume. You can learn more about how this impacts your business model on our B2B vs B2C business models page.
How to Register for VAT in Sweden
Registering with Skatteverket isn’t an overnight process. It typically takes 4 to 8 weeks to receive your Swedish VAT number. For the official guidance, see Skatteverket’s VAT registration page here: https://skatteverket.se/servicelankar/otherlanguages/inenglishengelska/businessesandemployers/startingandrunningaswedishbusiness/registeringabusiness/registeryourbusinessforvat.4.6e1dd38d196873bc1e1376.html. Here is the simplified checklist to get started:
- Gather Documentation: You’ll need your Certificate of Incorporation, proof of identity for directors, and evidence of your business activities (like invoices or contracts).
- Submit the Application: This is done via the Skatteverket portal or via paper forms for non-resident businesses.
- Appoint a Representative: If you are based outside the EU, you may be required to appoint a fiscal representative who is jointly liable for your VAT payments.
- Receive Your SE Number: Your Swedish VAT number will start with the prefix “SE” followed by 12 digits.
To make this easier, we offer a dedicated service for VAT registration in Sweden. We handle the back-and-forth with the Swedish authorities so you don’t have to learn Swedish tax law by heart.
2026 Compliance: Filing and Deadlines
Once you have your number, the real work begins. You must file VAT returns even if you have zero sales for a specific period.
- Reporting Frequency: This is usually determined by your turnover. Most small to medium ecommerce sellers file quarterly, though very large businesses file monthly.
- Deadlines: Typically, the return and payment are due by the 26th day of the second month following the reporting period.
- Digital Reporting: Sweden is moving toward stricter SAF-T (Standard Audit File for Tax) requirements. Ensure your accounting software can export the necessary data formats to stay compliant.
New for 2026: Fraud Prevention & “ViDA”
Skatteverket has upped its game this year. The 2026 Budget Bill granted the tax agency more power to deregister entities suspected of “carousel fraud” or missing trader schemes. They are also preparing for the VAT in the Digital Age (ViDA) amendments coming in 2027, which will eventually make real-time digital reporting mandatory across the EU.
This is why maintaining clean records is essential. Use a professional accounting service to ensure every transaction is logged correctly.
Essential Invoicing Requirements
A Swedish VAT invoice isn’t just a receipt; it’s a legal document. To be valid in 2026, your invoices must include:
- Your full business name and address.
- Your SE VAT number.
- A unique, sequential invoice number.
- The date of issue.
by Ariful | Feb 26, 2026 | European VAT
The 2026 Landscape: Why Sweden VAT Matters Now
Sweden remains one of the most structured tax environments in the world. For 2026, Skatteverket has tightened its grip on digital fraud while simultaneously raising thresholds to help smaller businesses breathe. If you are selling to Swedish consumers (B2C) or businesses (B2B), you need to know exactly where you stand to avoid hefty penalties.
At Sterlinx Global Ltd, we help sellers manage these complexities every day. From initial registration to monthly filings, our goal is to keep you selling while we handle the paperwork.
Do You Need to Register? Understanding the 2026 Thresholds
The first question every seller asks is: “When do I actually have to start paying Swedish VAT?”
In 2026, the rules depend heavily on where your business is established and how much you are selling.
1. The Domestic Registration Threshold
For businesses established in Sweden, there is good news. The VAT registration threshold has been increased to SEK 120,000. If your annual turnover stays below this limit, you aren’t required to register for VAT. However, keep a close eye on your growth; once you cross that line, you must notify Skatteverket immediately.
2. The EU Distance Selling Threshold (OSS)
If you are an EU-based seller shipping goods to Sweden, you likely fall under the One-Stop Shop (OSS) rules. The EU-wide threshold is €10,000.
- Below €10,000: You can charge the VAT rate of your home country.
- Above €10,000: You must register for OSS and charge the Swedish VAT rate (usually 25%) on all sales to Swedish customers.
3. Non-EU Sellers and IOSS
For our friends selling from outside the EU (like the UK or USA), the Import One-Stop Shop (IOSS) is your best friend for consignments under €150. It simplifies the process at the border and ensures your customer isn’t hit with unexpected “handling fees” upon delivery.
Swedish VAT Rates in 2026: What to Charge
Charging the wrong rate is one of the fastest ways to trigger an audit. Sweden has three primary rates that you need to program into your checkout:
- Standard Rate (25%): This applies to the vast majority of goods and services, including clothing, electronics, and most household items.
- Reduced Rate (12%): Primarily for foodstuffs, hotels, and some artistic items.
- Super-Reduced Rate (6%): This applies to books (including e-books), newspapers, passenger transport (like taxis), and certain cultural events.
Pro Tip: For 2026, the Swedish government has introduced a temporary reduction for specific food categories to 6% to combat inflation. Always check the specific category of what you are selling to ensure you aren’t overcharging your customers or underpaying the taxman.
The Marketplace Facilitator Rules
Are you selling on Amazon or eBay? Then the “Marketplace Facilitator” rules apply to you. In many cases, the marketplace is responsible for collecting and remitting the VAT on your behalf if you are a non-EU seller. However, this does not always exempt you from needing a VAT number.
Holding stock in a Swedish warehouse (like an Amazon FBA center in Sweden) almost always triggers an immediate requirement for a local Swedish VAT registration, regardless of your sales volume. You can learn more about how this impacts your business model on our B2B vs B2C business models page.
How to Register for VAT in Sweden
Registering with Skatteverket isn’t an overnight process. It typically takes 4 to 8 weeks to receive your Swedish VAT number. For the official guidance, see Skatteverket’s VAT registration page here: https://skatteverket.se/servicelankar/otherlanguages/inenglishengelska/businessesandemployers/startingandrunningaswedishbusiness/registeringabusiness/registeryourbusinessforvat.4.6e1dd38d196873bc1e1376.html. Here is the simplified checklist to get started:
- Gather Documentation: You’ll need your Certificate of Incorporation, proof of identity for directors, and evidence of your business activities (like invoices or contracts).
- Submit the Application: This is done via the Skatteverket portal or via paper forms for non-resident businesses.
- Appoint a Representative: If you are based outside the EU, you may be required to appoint a fiscal representative who is jointly liable for your VAT payments.
- Receive Your SE Number: Your Swedish VAT number will start with the prefix “SE” followed by 12 digits.
To make this easier, we offer a dedicated service for VAT registration in Sweden. We handle the back-and-forth with the Swedish authorities so you don’t have to learn Swedish tax law by heart.
2026 Compliance: Filing and Deadlines
Once you have your number, the real work begins. You must file VAT returns even if you have zero sales for a specific period.
- Reporting Frequency: This is usually determined by your turnover. Most small to medium ecommerce sellers file quarterly, though very large businesses file monthly.
- Deadlines: Typically, the return and payment are due by the 26th day of the second month following the reporting period.
- Digital Reporting: Sweden is moving toward stricter SAF-T (Standard Audit File for Tax) requirements. Ensure your accounting software can export the necessary data formats to stay compliant.
New for 2026: Fraud Prevention & “ViDA”
Skatteverket has upped its game this year. The 2026 Budget Bill granted the tax agency more power to deregister entities suspected of “carousel fraud” or missing trader schemes. They are also preparing for the VAT in the Digital Age (ViDA) amendments coming in 2027, which will eventually make real-time digital reporting mandatory across the EU.
This is why maintaining clean records is essential. Use a professional accounting service to ensure every transaction is logged correctly.
Essential Invoicing Requirements
A Swedish VAT invoice isn’t just a receipt; it’s a legal document. To be valid in 2026, your invoices must include:
- Your full business name and address.
- Your SE VAT number.
- A unique, sequential invoice number.
- The date of issue.
by Ariful | Apr 15, 2022 | E-Commerce
Store Subscription Fees
Since you might not have decided yet to acquire a store subscription, and which type of subscription you select can influence many of your additional expenses, we will start by outlining store subscription prices.
Store subscriptions are discretionary, however, they empower sellers to access a certain allotment of free listings monthly, together with assorted benefits, discounts, and perks based upon the subscription level.
Below are the specifics of each store subscription plan.
Starter subscription from $4.95
According to eBay, the Starter store subscription supplies “discounts and tools for occasional sellers”.
This plan comprises 250 complimentary fixed price/auction listings monthly, discounts on services, a 10% final value fee for items of all types, and other entry-level perks.
Basic subscription from $21.95
The Basic store subscription provides “discounts and tools for growing businesses”.
This plan comprises 350 complimentary fixed price listings monthly, 250 free auction listings for collectibles and fashion monthly, a free subscription to eBay’s Terapeak Research tool, a 4 percent to 9.15% final value fee for most items, and more.
Premium subscription from $59.95
The Premium store subscription supplies “bigger discounts designed for bigger businesses”.
This plan comprises 1,000 complimentary fixed price listings monthly, 500 free auction listings for collectibles and fashion each month, a free subscription to eBay’s Terapeak Research tool, a 4 percent to 9.15% final value fee for most items and more.
Anchor subscription from $299.95
The Anchor store subscription is suited for “lower fees and dedicated support for volume sellers.”
This plan comprises 10,000 complimentary fixed price listings monthly, 1,000 free auction listings for collectibles and fashion each month, a free subscription to eBay’s Terapeak Research tool, a 4 percent to 9.15% final value fee for most items and more.
Enterprise subscription from $2,999.95
Last, the Enterprise store subscription has “the best rates and dedicated service for the largest retailers”.
This plan comprises 100,000 complimentary fixed price listings monthly, 2,500 free auction listings for collectibles and fashion each month, a free subscription to eBay’s Terapeak Research tool, a 4 percent to 9.15% final value fee for most items and more.
To find out more about eBay store subscriptions, browse eBay’s full breakdown of each plan. Also note that some of these features are changing by April 1, 2021 (for example, free listing allotments will be increasing for some store subscription tiers).
Insertion Fees
Outside of any discretionary upgrade costs or store subscriptions, there are two special considerations regarding the cost to sell on eBay: an insertion fee and the final value fee.
Unless you sign up for a store subscription, you will receive 200 zero-insertion fee fixed-price or auction listings monthly. (Note: by April 1, 2021, this allotment will increase to 250).
If you subscribe to a store subscription, your monthly insertion fee fixed price and auction listings allotment will be outlined above for each plan level.
When you exceed your monthly allotment, your insertion fees will be as follows for most item categories:
- Non-subscribers: $0.35 per auction listing or fixed price
- Subscribers to a Starter store: $0.30 per auction listing or fixed price
- Subscribers to a Basic store: $0.25 per auction listing or fixed price
- Subscribers to a Premium store: $0.10 per auction listing or fixed price
- Subscribers to an Anchor store: $0.05 per auction listing or fixed price
- Subscribers to an Enterprise store: $0.05 per auction listing or fixed price
Important note: insertion fees are per category or per listing. Thus, if you are selling one item but list it in two different categories, you will pay two insertion fees if you have exceeded your free monthly allotment. Insertion fees are nonrefundable.
Learn more about eBay insertion fees here.
Final Value Fees
When your item sells, you will also pay a final value fee on it. This cost is a specific percentage of the item’s price (including handling and shipping charges) + $0.30, and it is based upon the category in which it’s listed.
If you are a store subscriber, you will get additional information regarding your final value fees in our descriptions of each subscription level previously, and on eBay’s store webpage.
For the breakdown of final value fees, visit eBay’s chart of fees.
by Ariful | Dec 31, 2020 | E-Commerce
What is VAT?
To begin with, VAT which stands for Value Added Tax is a type of sales tax that is applied on goods and services you buy and sell throughout the UK and the EU. VAT is fundamentally comprised of two components: the Threshold and the Rate.
The threshold denotes when the company is required to be registered for VAT and is given by a figure of the company’s turnover. The rate denotes the percentage of tax to be added to the goods or services that the company sells.
You will need to remember that the rates and thresholds for VAT registration differ for each country in Europe, which I will explain further a bit later. For the UK the current VAT rate is 20%.
For example, if you are selling a product for £150 + VAT this then totals to £180. As it currently stands, the VAT threshold in the UK is £84,000. As a UK business you are liable to register for VAT when you are expecting to meet or exceed this mark in incoming sales per year.
If your company is VAT registered, you must charge VAT on your products or services. The benefit of this is that you can claim back the VAT that you have paid on expenses for your business.
As a VAT registered business you will need to report the amount of VAT that you have charged and the amount you have paid for products or services. You must declare this to HMRC through your quarterly VAT returns.
VAT for Amazon Sellers: How does VAT differ within EU countries?
Each country has particular rules and regulations that must be followed to avoid any penalty fees or in the worst case, by having your Amazon sellers account closed.
So if you are an Amazon seller in the UK wanting to expand to selling on Amazon EU or if you are already selling on these platforms, the following information is useful to know.
Fiscal Representation and Additional requirements
Here is where the process of VAT registration and submission can get slightly technical. You might have heard of the term Fiscal Representation, this is where a local entity (usually a local accountant) or acting body represents foreign traders for their VAT filings to that countries Tax Office. From the list of countries that we work with, France, Spain, Italy, Poland and The Netherlands all require Fiscal Representation.
For some other countries, further legal documentation may be required for example in Spain you would need to appoint a Power of Attorney to approve your legal documents which will then require a Hague Apostille Stamp.
How is VAT Calculated?
Each country within the EU has different taxation laws, where you will need to submit your declaration of VAT to the Tax Office on a monthly or quarterly basis. For the UK, you will need to declare your VAT to HMRC at least quarterly.
There are two main elements to VAT:
- Input Tax – VAT that is charged by your supplier when your goods are imported into the country.
- Output Tax – VAT that you would charge your customers when they purchase your products or services.
Disclaimer: This will differ depending on your business model and the number of revenues your company brings in.
VAT for Overseas Amazon FBA Sellers (Non-UK, EU)
If your business is based in the UK, you are not liable to register for VAT until your annual sales turnover exceeds the UK threshold of £84,000.
However, to benefit your business by being able to claim back on VAT for goods and services that you buy and sell, you can voluntarily register for VAT before you exceed the VAT threshold.
If you are an international corporation based in the EU and are looking to sell with Amazon FBA UK, which includes storing your products here in the UK, then you will need to immediately register for VAT.
This is an action you must take regardless of what your company turnover is.
Now, this is important… If your business is not based in the UK, you need a VAT number from day one of storing your products within the UK. This can be any number of products stored anywhere within the UK.
Regardless of whether you have imported your products or purchased them from a supplier in the UK, you will still need to register for VAT with HMRC regardless of whether you meet the threshold of £84,000 in sales turnover.
In some circumstances, your products may be eligible to be VAT exempt. You can check an up-to-date list of exempt products on the HMRC website.
VAT for Overseas Amazon FBA Sellers (non-UK, non-EU)
If you are an international corporation based outside of the UK and EU, you will immediately need to register for VAT from the day of your first sale or from the first day that you began to store your products in the UK. This rule applies regardless of what your annual turnover is or whether your annual turnover meets the threshold.
How our team at Sterlinx help you and your business
So as you may have gathered from reading this post, VAT can get quite complicated depending on where your business is based, who you are selling to and where you are storing your products.
At Sterlinx Global, we can assist you in making this process as smooth and as easy as possible. We specialise in Amazon Accounting for UK and Europe.
If you are an Amazon FBA Seller and would like further information regarding VAT within the UK and EU, get in touch and book a consultation with one of our highly trained specialists today.
