by Ariful | Sep 8, 2026 | US Updates
TITLE: Washington DC Sales Tax Rise to 7% in 2026 and Fake IRS Crypto Letters: What Global Sellers Must Know
If you sell goods, digital products, SaaS, or taxable services into Washington DC, two USA compliance issues require your attention today.
The District of Columbia will increase its general sales tax rate from 6% to 7% from 1 October 2026. Separately, IRS Criminal Investigation has warned cryptocurrency holders about fake IRS letters promoting a nonexistent “Digital Asset Compliance Portal”.
These updates matter to international sellers in the UK, EU, Canada, and Australia. They affect your sales tax setup, filing process, customer communications, and cybersecurity controls.
Update your Washington DC sales tax settings before 1 October
The District of Columbia Office of Tax and Revenue (OTR) confirms that its general sales tax rate remains 6.0% through 30 September 2026. The rate increases to 7.0% for periods beginning on or after 1 October 2026.
The change applies to taxable sales of:
- Tangible personal property.
- Digital goods.
- Taxable services.
- Data processing services.
- SaaS and similar cloud-based software services.
- Digital downloads and e-books.
B2B sales are not automatically exempt. If you provide taxable SaaS or digital services to a business customer in Washington DC, the transaction may still be subject to District sales tax.
The change is based on the District’s Fiscal Year 2026 Budget Support legislation. You should update your tax engine, ecommerce platform, invoicing system, and reporting process before the new rate begins.
Check whether you have Washington DC economic nexus
A foreign or out-of-state seller may have economic nexus in the District even without an office, warehouse, or employee there.
According to OTR, a remote seller must register, collect, and remit District sales tax when it exceeds either threshold in the previous or current calendar year:
- More than $100,000 in gross receipts from retail sales delivered into Washington DC, or
- More than 200 separate retail sales delivered into the District.
This applies to foreign remote sellers. A UK Limited Company, USA LLC, Canadian Corporation, or Australian business can therefore have a Washington DC sales tax obligation.
Do not wait until year-end to review your position. Track your District sales by:
- Customer location.
- Transaction count.
- Gross receipts.
- Product or service type.
- Sales channel.
- Tax collected.
- Marketplace and direct website activity.
OTR also confirms that sales made through your own website and through a marketplace count when determining whether you have crossed the remote seller threshold.
Separate marketplace collections from direct sales
Marketplace facilitators are required to collect and remit Washington DC sales tax on marketplace transactions. This can apply to platforms such as Amazon, eBay, and Etsy.
However, your compliance responsibility does not disappear. You still need to:
- Reconcile marketplace tax reports against your sales ledger.
- Check whether direct sales create a separate collection obligation.
- Review sales tax treatment for products sold outside the marketplace.
- Retain marketplace statements and transaction records.
- Avoid charging tax twice to customers.
Shopify and direct website sales remain your responsibility. The platform may calculate tax, but you remain responsible for ensuring that the correct products, customer locations, rates, registrations, and filings are configured.
If you sell from the UK, this is where structured ecommerce bookkeeping becomes essential. An ecommerce accountant UK team should be able to reconcile Amazon, Shopify, payment processors, and your accounting records. The same applies if you need an amazon seller accountant uk or support with Shopify accounting UK for cross-border sales.
File through MyTax.DC.gov by the deadline
Washington DC sales tax returns are filed electronically through MyTax.DC.gov.
Returns and payments are generally due by the 20th day of the month following the reporting period. For example, a monthly return for October is normally due by 20 November.
Late filing can create penalties and interest. OTR states that late returns with tax due may attract a late filing penalty ranging from 5% to 25%, with interest also accruing.
Use the official OTR sales and use tax FAQs to confirm registration, filing, marketplace, and remote seller requirements.
Ignore fake IRS letters about the “Digital Asset Compliance Portal”
On 30 July 2026, IRS Criminal Investigation issued a fraud alert about fake letters targeting cryptocurrency holders.
The letters look official. They tell recipients to scan a QR code and register for a supposed “Digital Asset Compliance Portal”. The QR code leads to a fraudulent website designed to imitate IRS.gov.
The IRS has confirmed that:
- It did not send these letters.
- It does not operate a Digital Asset Compliance Portal.
- The letters are part of a scam.
- The fraudulent website may request personal information, wallet details, or exchange credentials.
Never scan an unsolicited tax QR code
If you receive an unexpected letter claiming to be from the IRS, do not:
- Scan the QR code.
- Visit the website shown in the letter.
- Call a phone number printed in the letter.
- Provide your Social Security number or business credentials.
- Share wallet recovery phrases or private keys.
- Provide exchange passwords or multi-factor authentication codes.
- Transfer cryptocurrency or make a payment.
Scammers often use urgent deadlines, threats of penalties, and official-looking branding to pressure you into acting quickly. Slow down and verify every request through an independently accessed official government website.
Legitimate tax compliance does not require you to hand over a wallet recovery phrase or private key. No genuine tax authority should need those credentials to verify your tax position.
Act quickly if you already shared information
If you scanned the QR code or entered information on the fraudulent website, take action immediately:
- Change passwords for affected accounts.
- Enable multi-factor authentication.
- Contact your bank and cryptocurrency exchange.
- Review recent account activity and withdrawal requests.
- Move assets only through a secure, verified process if your provider recommends it.
- Preserve the letter, envelope, screenshots, emails, and transaction records.
- Report the incident to IRS Criminal Investigation through the official IRS reporting process.
The IRS also advises victims to monitor financial accounts and report suspicious activity promptly.
International seller compliance checklist
Use this short checklist to reduce your risk:
- Confirm whether your Washington DC sales exceed $100,000 or 200 transactions.
- Review taxable goods, digital products, SaaS, e-books, and data processing services.
- Update your DC sales tax rate from 6% to 7% for transactions beginning on or after 1 October 2026.
- Verify that your tax engine and ecommerce platform reflect the new rate correctly.
- Reconcile marketplace facilitator collections against your own sales records.
- Ensure direct sales via Shopify or your website are configured to collect DC tax when nexus applies.
- File returns electronically through MyTax.DC.gov by the 20th of the following month.
- Be alert for unsolicited letters referencing a “Digital Asset Compliance Portal” and ignore them.
- Never scan QR codes or share credentials or wallet keys with unverified parties claiming to be tax authorities.
- Act swiftly to secure accounts and report if you have interacted with the fraudulent portal.
by Ariful | Sep 8, 2026 | Australia Updates
1. Use the permanent $20,000 instant asset write-off
The Treasury Laws Amendment (Tax Reform No. 2) Act 2026 received Royal Assent on 26 August 2026.
The Act permanently introduces a $20,000 instant asset write-off for eligible small businesses from 1 July 2026.
According to the Australian Taxation Office (ATO), a business may qualify where:
- Its aggregated annual turnover is under $10 million.
- The asset is a qualifying depreciating asset.
- The asset costs less than $20,000.
- The asset is first used, or installed ready for use, from 1 July 2026.
- The asset is used for a taxable business purpose.
The threshold applies per asset. This means you may be able to immediately deduct several separate eligible assets, provided each asset remains below the threshold.
For example, an Australian digital agency could purchase eligible computers, office equipment and software-related hardware during the same year. Each asset must be assessed separately and supported by accurate purchase and use records.
Check these records before claiming
Maintain:
- Supplier invoices.
- Payment evidence.
- The date the asset was first used or installed.
- The business-use percentage.
- Asset descriptions and serial numbers.
- Evidence that the asset remains eligible under the simplified depreciation rules.
Do not treat the write-off as an automatic deduction for every purchase. Correct classification and record-keeping will help you avoid an incorrect claim during an ATO review.
2. Model the new loss carry-back rules
The Act also reintroduces a loss carry-back tax offset for eligible corporate tax entities from income years beginning on or after 1 July 2026.
The ATO’s loss carry-back guidance confirms that eligible companies may carry back a revenue tax loss against income tax paid in either or both of the previous two income years.
Key conditions include:
- The company must be an eligible corporate tax entity.
- Aggregated annual global turnover must be below $1 billion.
- The loss must be a revenue loss, not a capital loss.
- The offset is limited by tax previously paid.
- The company’s franking account balance also affects the available offset.
- The company must meet its lodgement and other tax obligations.
For a standard 30 June balancing company, the first relevant income year is generally 2026–27.
This measure could improve cash flow for Australian businesses that previously paid tax but later experience a temporary loss. It may be particularly relevant to growing ecommerce brands, SaaS companies, agencies and other digital businesses investing heavily in technology, staff or expansion.
Prepare before lodging the 2026–27 return
Create a forecast showing:
- Prior-year taxable income and tax paid.
- Expected 2026–27 revenue loss.
- Available franking account balance.
- The potential refundable tax offset.
- Any restrictions caused by ownership, integrity or lodgement requirements.
Do not wait until year-end to review this. Accurate monthly bookkeeping will make the calculation more reliable. Our banking and transaction-recording support can help keep the underlying data organised.
3. Respond quickly to the ATO’s debt collection push
The ATO is increasing collection activity against a debt book reported at approximately $115 billion. Reporting from news.com.au and AccountantsDaily highlights the stronger enforcement environment.
Australian businesses should expect closer attention to overdue:
- GST and BAS liabilities.
- PAYG withholding.
- Superannuation obligations.
- Income tax debts.
- General Interest Charge (GIC).
The ATO may use several enforcement tools.
Director Penalty Notices
A Director Penalty Notice can make company directors personally liable for certain unpaid:
- PAYG withholding.
- Net GST.
- Superannuation Guarantee Charge.
A standard DPN generally gives the director 21 days from the date of the notice to act. Depending on the circumstances, options may include paying the amount, entering an acceptable arrangement, appointing an administrator, using small business restructuring or commencing winding-up proceedings.
If reporting or payment obligations remain outstanding for too long, a lockdown DPN may limit the options available to the director. This is why you should lodge BAS, IAS and superannuation statements on time, even where full payment is not immediately possible.
Garnishee notices
The ATO can issue garnishee notices to recover money from bank accounts or third parties that owe money to the taxpayer. For an ecommerce business, this may create serious disruption if funds held by a payment provider or merchant facility are affected.
Credit reporting for debts over $100,000
The ATO may disclose eligible business tax debts to credit-reporting bureaus where the business:
- Has an ABN.
- Owes at least $100,000.
- Has a debt overdue by more than 90 days.
- Is not effectively engaging with the ATO.
The business should generally receive a notice of intent to disclose and a period to respond. A formal payment arrangement or valid dispute may help prevent disclosure, but you should act before the matter escalates.
Prepare stronger evidence for interest remission
On-the-spot GIC waivers are now capped at approximately $4,500. Larger requests require specialist review.
The Tax Ombudsman has also called for fairer and more consistent treatment of GIC remission. Its 2026 review notes concerns about inconsistent decisions and supports interest-free payment plans for eligible taxpayers who maintain compliant arrangements.
Keep evidence of:
- Cash-flow difficulties.
- ATO errors or delays.
- Previous attempts to pay.
- Payment arrangements.
- Corrective action taken.
- The reasons for late payment.
Early engagement is essential. Do not ignore an ATO notice.
4. Review software royalty withholding tax obligations
Australian businesses that import or license software from overseas should carefully review their withholding tax obligations. Payments for rights to use software may be subject to royalty withholding tax where the payment is for the right to use a copyright.
This can apply to payments for:
- Software licenses.
- Cloud-based solutions where a copyright right is transferred.
- Software bundled with hardware.
- Ongoing software subscription fees.
The rate is generally 30% for payments to non-residents, unless a tax treaty reduces the rate. Where the payment is made to a resident of a country with which Australia has a tax treaty, the rate may be reduced or eliminated, provided the relevant requirements are met.
Common application scenarios include businesses using overseas payroll platforms, CRM systems, ecommerce marketplaces or subscription tools where the payment is for a copyright right rather than purely for the use of a server.
Review your contracts and payment flows
Speak with your tax adviser about:
- Whether your contracts expressly grant a copyright right.
- Whether the payment is for software or for services.
- Whether the supplier has provided a valid residency certificate.
- Whether a withholding obligation arises and at what rate.
If you have already made payments without withholding, consider whether the new penalty and interest framework applies or whether voluntary disclosure is appropriate.
5. Track crypto asset transactions
Australian businesses that accept or trade crypto assets face several tax and reporting issues.
The ATO continues to treat cryptocurrency as a CGT asset for tax purposes, unless it is held as an income asset. This means that capital gains tax (CGT) may apply on disposal, while businesses that trade crypto as part of their ordinary activities may be subject to ordinary income tax.
Businesses that accept crypto for goods or services must record the market value in Australian dollars at the time of receipt. This amount forms the basis for both income recognition and the CGT cost base of the asset received.
Where a business disposes of crypto, the following records should be kept:
- Date of receipt and disposal.
- Market value at the time of receipt.
- Market value at the time of disposal.
- Any fees or commissions charged.
- Wallet addresses and transaction IDs where practical.
- Purpose of the transaction.
For a business that trades crypto as part of its ordinary activities, the trading stock rules may apply. This requires valuation of closing stock at the end of the income year.
Software used by digital businesses may need to reflect crypto-specific reporting. If you use an accounting tool that does not separately track crypto, consider adding a separate ledger or code.
6. Check Salary Sacrifice and FBT arrangements
For September, employers should review any salary packaging arrangements and their fringe benefits tax (FBT) obligations.
Common issues include:
- Incorrect classification of benefits.
- Incorrect FBT treatment of car parking.
- Not reporting entertainment or property fringe benefits.
- Failing to keep records of salary sacrifice elections.
One area frequently missed is the FBT treatment of remote or home-office equipment. Where an employer provides technology or furniture for work use at home, a minor benefit exemption may apply if the value is less than $300 (or such other amount as may be indexed). However, where the value exceeds the minor benefit threshold or the benefit is not infrequent, FBT may apply.
Another area is the exempt property benefit for certain portable electronic devices. For these to be exempt, the devices must be used primarily in the employee’s employment and the exemption generally applies to one device of each type per FBT year per employee. The device must also be provided for the employee’s personal use and not form part of a salary sacrifice arrangement that trades cash for the benefit.
Where a salary packaging arrangement is offered, ensure that the employee election is made in writing before the benefit is provided. Retrospective elections can invalidate the tax-effective treatment of the arrangement.
For any benefit that is subject to FBT, you must:
- Calculate the taxable value correctly.
- Account for GST credits correctly.
- Report the grossed-up amount on the payment summary or income statement where applicable.
- Lodge the FBT return by the due date (generally 21 May following the FBT year ending 31 March).
Reviewing your FBT processes now will help prevent surprises at year-end.
What to do now
Before the end of September, take the following steps:
- Review your current asset register to identify assets acquired from 1 July 2026 that qualify for the $20,000 instant asset write-off.
- Create a loss carry-back forecast if your business experienced a prior profit and expects a current-year loss.
- Review all outstanding ATO obligations and respond to any notices immediately.
- Examine any software licensing agreements with overseas suppliers for withholding obligations.
- Check that your crypto transaction records are complete and accurate.
- Review salary packaging arrangements to ensure elections are valid and records are complete.
Engaging with a qualified tax adviser is strongly recommended due to the technical nature of these measures. Each business’s circumstances differ, and the correct application of the rules depends on accurate facts and records.
Disclaimer: This article provides general information only and does not constitute financial or taxation advice. You should consult a registered tax agent or qualified professional for advice tailored to your specific situation.
by Ariful | Sep 7, 2026 | US Updates
TITLE: Cross-Border SME Finance: Bank Licences, Embedded Lending, and Global Accounts
Cross-border SME finance is becoming more integrated, faster, and increasingly data-led.
This week’s review covers four important developments:
- Revolut’s conditional approval to form a US national bank.
- iwoca’s embedded lending partnership with Starling Bank.
- WorldFirst’s unified global account launch in Thailand.
- Ping An Digital Bank’s purchase order financing for cross-border ecommerce businesses.
For UK ecommerce sellers, digital businesses, and growing SMEs, these developments create new opportunities. They also increase the need for accurate bookkeeping, clear cash-flow records, and reliable VAT, GST, and Sales Tax reporting.
Key trend: Financial services are moving closer to your business operations
The latest developments show that accounts, payments, foreign exchange, lending, and marketplaces are no longer separate systems.
They are increasingly connected through APIs and real-time commercial data.
This can help you:
- Receive customer payments faster.
- Apply for funding using live business data.
- Pay international suppliers more efficiently.
- Manage multiple currencies from one platform.
- Reduce manual paperwork during financial assessments.
However, better access to financial tools does not remove your compliance responsibilities. It makes transaction data more complex.
You still need to identify revenue correctly, reconcile payment platforms, separate loan proceeds from sales, and record foreign exchange movements accurately. This is essential when preparing VAT returns, year-end accounts, and cross-border tax filings.
1. Revolut receives conditional approval for a US national bank
The approval is significant, but Revolut Bank US has not opened yet
On 2 September 2026, the US Office of the Comptroller of the Currency (OCC) granted preliminary conditional approval for Revolut Bank US, National Association, to be established in Stamford, Connecticut.
The official OCC Corporate Decision #1390 makes the position clear. This is preliminary conditional approval, not final permission to open and operate.
Revolut must still:
- Obtain FDIC deposit insurance.
- Complete Federal Reserve membership and related approvals.
- Meet the OCC’s pre-opening requirements.
- Complete a pre-opening examination.
- Satisfy capital, governance, technology, security, and compliance conditions.
The OCC decision states that the proposed bank must maintain a Tier 1 leverage ratio of at least 10% during its first three years. It also requires at least $95 million in initial paid-in capital, net of organisational and pre-opening expenses.
Revolut is targeting a 2027 launch. Once fully approved, the proposed bank plans to offer US customers direct access to deposits, loans, credit cards, payments, and other digital financial products.
The approval does not yet include Revolut’s proposed retail foreign exchange business. That activity requires further OCC supervisory non-objection.
What this means for UK businesses
A US national bank could eventually give Revolut greater control over its US customer and business offering. It may also support a broader range of US banking products for companies trading across the Atlantic.
The wider expansion is notable. Revolut has also pursued banking licences in France, Australia, and the UK during 2026, alongside a UAE payments licence.
For your business, the key issue is not simply which app holds your money. It is which legal entity provides the account and where transactions are legally and operationally processed.
Protect your records before expanding across accounts
If you use multiple Revolut entities or accounts, maintain separate bookkeeping records for:
- Each legal entity.
- Each currency.
- Each bank or payment account.
- Customer receipts and supplier payments.
- Foreign exchange gains and losses.
- Bank fees and card charges.
Do not treat a transfer between GBP, USD, and EUR accounts as revenue or an expense. It is usually an internal movement, with any exchange difference recorded separately.
Your bank feed should support your accounts, not replace reconciliation.
2. iwoca and Starling bring embedded SME lending into the app
Access funding without leaving your business banking environment
iwoca has partnered with Starling Bank through a full API integration. Eligible Starling business customers can apply for iwoca loans directly inside the Starling app and online banking environment.
The reported product terms include:
- Unsecured loans from £1,000 to £1 million.
- Repayment terms of one to five years.
- Instant decisions for loans up to £100,000.
- Decisions typically within 24 hours for larger amounts.
- No early repayment penalties.
- No hidden fees.
- Funds paid into the customer’s Starling business account after acceptance.
The important operational point is that iwoca provides the loan. Starling is the access channel. Starling’s own customer help page confirms that the loan is provided directly by iwoca and managed with iwoca.
The integration uses API-based data sharing and automated eligibility checks. That can reduce application friction and shorten the time between applying and receiving a decision.
Record finance correctly from day one
Fast access to funding can help you purchase inventory, fund advertising, or manage VAT and payroll timing. It can also create bookkeeping problems if the loan is posted incorrectly.
Use a clear process:
-
Post the loan receipt to a liability account.
The loan is financing, not turnover. This prevents your revenue figures from being overstated.
-
Separate principal from interest.
Principal reduces the balance owed. Interest is a finance cost, subject to the applicable accounting treatment.
-
Reconcile automated repayments.
Match each payment against the lender statement so that the remaining balance stays accurate.
-
Track the funding purpose.
Keep evidence showing whether the funds supported inventory, marketing, software, payroll, or another business activity.
-
Review cash flow before borrowing.
A fast decision does not necessarily mean the borrowing is affordable. Forecast repayments alongside VAT, corporation tax, payroll, supplier, and marketplace settlement dates.
Loan proceeds do not automatically create VAT or Sales Tax. Your underlying sales and purchases remain subject to the relevant rules.
3. WorldFirst expands its unified global account in Thailand
One account can simplify international collections and supplier payments
Ant International’s WorldFirst has launched in Thailand through a partnership with 2C2P and 2C2P Plus.
The WorldFirst Thailand launch announcement describes a World Account designed to help Thai SMEs manage international collections, payments, currency
by Ariful | Sep 7, 2026 | E-Commerce
TITLE: Q4 Compliance and Margin Checks: Your 7 September 2026 To-Do List for Amazon and Shopify Sellers
For the week commencing 7 September 2026, UK Amazon and Shopify sellers should focus on one priority: complete your Q4 compliance and margin checks before peak trading begins.
September is the final practical window to reconcile your accounts, verify VAT positions, review inventory locations and model the additional cost of holiday fulfilment.
1. Plan for Amazon’s Q4 peak fees before you commit to stock
Amazon has confirmed that holiday peak fulfilment fees will apply from 15 October 2026 to 14 January 2027 across relevant FBA, Remote Fulfilment, Multi-Channel Fulfilment and Buy with Prime services.
Amazon expects the increase to average approximately $0.32 per unit, before the existing 3.5% fuel and logistics surcharge. Monthly storage rates will also increase from 1 October.
These costs can materially change your contribution margin. A product that appears profitable using standard fulfilment rates may become marginal once you include:
- Peak fulfilment fees.
- The fuel and logistics surcharge.
- Monthly storage.
- Advertising spend.
- Promotional discounts.
- Refunds and return costs.
- Currency conversion and payment fees.
Create a peak-season SKU model now. For each product, record:
- Selling price.
- Product and packaging cost.
- Amazon referral fee.
- Standard and peak fulfilment fee.
- Storage cost.
- Advertising cost per unit.
- Expected refund or return rate.
- VAT and other transaction taxes.
- Net contribution after all costs.
For example, if a product generates £12 of contribution before peak fees but loses £2.50 through additional fulfilment, storage and advertising costs, your Q4 cash-flow plan must reflect the lower figure.
An Amazon FBA accounting UK workflow should connect settlement data, inventory movements and SKU-level costs. This gives you a more reliable view than reviewing Amazon deposits alone.
Amazon’s official 2026 fulfilment fee guidance should be checked alongside the rate card for your specific marketplace and product size tier.
2. Ship September inventory before the Prime event deadlines
Amazon’s published 2026 inbound deadlines are approaching quickly.
For Prime Big Deal Days:
- 9 September: FBA shipments using minimal shipment splits.
- 16 September: FBA shipments using Amazon-optimised shipment splits.
For Black Friday Week and Cyber Monday:
- 21 October: FBA shipments using minimal shipment splits.
- 28 October: FBA shipments using Amazon-optimised shipment splits.
These dates relate to Amazon’s published Seller Central requirements and may vary by marketplace or fulfilment programme. Confirm your own shipment plan directly in Seller Central.
Before releasing inventory, check:
- Purchase order quantities.
- Supplier production and dispatch dates.
- Freight lead times.
- Customs clearance.
- FBA appointment availability.
- Remaining sellable stock.
- Expected Q4 sales velocity.
- Cash tied up in inbound inventory.
Do not rely only on your bank balance. Inventory purchased for Q4 may not convert into cash until weeks after delivery, especially where Amazon settlement timing, returns and advertising spend overlap.
Our international compliance guide provides useful background for businesses selling across multiple markets.
3. Reconcile Amazon settlements to gross sales
A bank deposit is not the same as revenue.
Amazon may deduct fulfilment fees, referral fees, refunds, advertising, storage, reimbursements, reserves and other charges before paying you. Your bookkeeping should reconcile the full settlement period, not simply post the net deposit as sales.
Complete this weekly reconciliation:
- Match gross orders to Amazon settlement reports.
- Separate sales, refunds and promotional discounts.
- Identify VAT collected or adjusted.
- Post Amazon fees to the correct expense accounts.
- Review reimbursements and damaged-stock claims.
- Match the final settlement figure to your bank statement.
- Investigate unexplained differences before they accumulate.
This is the foundation of accurate ecommerce bookkeeping UK businesses need before filing VAT returns, preparing management accounts or assessing Q4 performance.
Shopify sellers should follow the same principle. Your Shopify payout is a settlement, not a complete accounting record. Reconcile gross orders, payment processing fees, refunds, chargebacks, shipping income and tax collected.
A specialist Shopify accounting UK process should also distinguish domestic sales from overseas transactions and identify where marketplace or payment-provider reports do not match your accounting software.
4. Check your rolling UK VAT turnover
The UK VAT registration threshold remains £90,000 of taxable turnover, tested on a rolling 12-month basis.
It does not reset at the end of your financial year. Review the previous 12 months every month and also consider whether you expect to exceed the threshold in the next 30 days.
Use HMRC’s VAT registration guidance to confirm the current rules and registration deadlines.
Your September review should include:
- Amazon direct sales.
- Shopify sales.
- Wholesale or B2B sales.
- Shipping and other taxable income.
- Refunds and credit notes.
- Marketplace facilitator arrangements.
- Sales made through overseas channels.
- Taxable and exempt supplies, where relevant.
Do not use net Amazon settlements to assess your position. Start with the correct taxable turnover figures before deductions.
If you are VAT-registered, keep your records digitally and file through MTD-compatible software. HMRC’s VAT Notice 700/22 explains the digital record and filing requirements.
5. Review Shopify Tax settings for new stores
For new UK Shopify stores opened on or after 13 May 2026, Basic Tax is no longer available. Sellers must use either Shopify Tax or manual tax settings.
Shopify Tax can support tax calculations, product tax categories and VAT-related reporting data. Manual settings provide more control but require you to maintain rates, product treatment and regional settings accurately.
Whichever option you use, remember that Shopify does not file your VAT returns for you. You remain responsible for:
- Registering for VAT where required.
- Applying the correct VAT treatment.
- Maintaining digital records.
- Reconciling tax collected.
- Preparing and submitting VAT returns.
- Paying HMRC by the relevant deadline.
Review the official Shopify UK tax guidance before changing your settings.
6. Prepare for MTD for
by Ariful | Sep 7, 2026 | US Updates
TITLE: CBP IOR Number Enforcement: Key Compliance Deadline for Importers
U.S. Customs and Border Protection (CBP) will begin enhanced enforcement of importer of record data on 18 September 2026.
From that date, CBP may void an importer of record (IOR) number when the associated CBP Form 5106 information is incomplete or inaccurate. A voided IOR number is invalid for any purpose, including entering merchandise into the United States. Shipments can be stopped.
This update matters if you are a UK, EU, Canadian or Australian seller importing goods into the USA. It also matters if your foreign-owned US LLC, marketplace provider, freight forwarder or customs broker is involved in the import process.
Check your IOR records before 18 September
CBP published its Federal Register notice, “Accuracy of Importer of Record Data Submitted to CBP,” on 19 August 2026.
The notice is identified as 91 FR 53627, document 2026-16911, docket USCBP-2026-1024. It implements enhanced enforcement under Executive Order 14411, “Strengthening Customs Enforcement.”
CBP is reviewing the information held for new and existing importers of record. The information must be accurate, complete and directly connected to the IOR.
You should review every entity that imports goods into the USA on your behalf. Do not assume that your broker, freight forwarder or marketplace has maintained the correct records.
Confirm all six required Form 5106 data elements
CBP Form 5106 requires six core data elements:
- Importer name
- IRS EIN, SSN or CBP-assigned number
- Mailing address
- Physical address, if different from the mailing address
- Phone number
- Email address
Each item must be accurate and current. The contact information must belong directly to the importer of record.
Your IOR may be a US LLC, a foreign company, an individual or another eligible entity. The important point is that the entity shown as the importer must match the information submitted to CBP.
This is particularly important where several businesses operate under the same ecommerce group. Check that the legal name, tax identifier and contact details relate to the actual entity named on the customs entry.
Use a genuine physical address
CBP has issued specific instructions about the physical address field.
The physical address must be the actual physical location of the business or individual. It cannot simply be an address used for legal administration or logistics support.
The following addresses cannot be used as a substitute for the IOR’s genuine physical location:
- Registered agent address
- Customs broker address
- Freight forwarder address
- PO box
- Business service centre
- Address belonging to another person or entity
A principal’s home address may be acceptable where it is genuinely associated with the business or individual. The key requirement is that the address must belong directly to the IOR and represent a real physical location.
Example: UK Amazon FBA seller
Imagine a UK ecommerce company selling through Amazon FBA in the United States. Its freight forwarder registered the IOR using the forwarder’s warehouse address or a PO box.
That arrangement now creates a compliance risk. The freight forwarder’s address does not become the UK seller’s physical business location merely because the forwarder receives or manages shipments.
The seller should identify the actual IOR on the relevant entries and ensure that the Form 5106 record uses a qualifying physical address associated with that entity.
Use the IOR’s own email and phone number
CBP will also check the email address and phone number provided on Form 5106.
Both must be valid and belong to the IOR. A customs broker or other third party cannot replace the importer’s contact details with its own.
Review whether your Form 5106 uses:
- An email address controlled by the importer
- A phone number associated with the importer
- Contact details monitored by someone who can respond to CBP
- Information that remains current after business changes
Do not rely on a broker’s shared inbox or operations phone simply because the broker manages customs communications. CBP must be able to identify and contact the importer directly.
This also protects you from missing a CBP notification. CBP will notify the IOR by email at the address most recently submitted.
Check that your broker has a direct power of attorney
A customs broker filing Form 5106 on your behalf must hold a valid power of attorney (POA) executed directly with the IOR.
The POA cannot be arranged through a freight forwarder or another third party. The broker must have direct authority from the entity or individual identified as the importer of record.
Example: EU seller using a broker
An EU seller may have appointed a logistics provider to coordinate shipping to the United States. That logistics provider may then have instructed a customs broker to submit Form 5106.
The seller should confirm that the customs broker has a direct POA with the IOR. A chain of instructions through a freight forwarder does not replace the required direct authority.
Keep a copy of the signed POA and review it when the importing entity, broker or business structure changes. This creates a clearer record of who authorised the filing.
Understand the consequences of an inaccurate record
If CBP identifies incomplete or inaccurate information, it may immediately void the IOR number from 18 September 2026.
The effect is serious. A voided IOR number is invalid for any purpose, including entering imported merchandise into the United States. This can interrupt customs clearance and delay inventory replenishment.
CBP may also take other enforcement action. The Federal Register notice refers to potential exposure under:
- 18 U.S.C. 1001 for intentional false statements or deception
- 31 U.S.C. 3729, the False Claims Act
- 19 U.S.C. 1641 for customs broker penalties and related consequences
These risks make it important to correct inaccurate data before CBP identifies the problem. Do not treat Form 5106 as a one-time administrative form. Its information must remain accurate and up to date.
Review every US-connected importing entity
Marketplace sellers often have more than one entity involved in a shipment.
For example, a UK company may sell the goods, a US LLC may act as the importer, an Amazon fulfilment centre may receive the inventory, and a broker may file the entry. A Shopify seller may use a third-party logistics provider or an IOR-as-a-service arrangement.
Do not assume that the seller, marketplace account holder and importer of record are the same entity.
For each US shipment, confirm:
- Which entity is named as the IOR
- Which IOR number is used
- Which entity owns the EIN or CBP-assigned number
- Which physical location belongs to that entity
- Which email and phone number belong to that entity
- Which broker filed the entry
- Whether the broker has a direct POA
- Whether the same information is used consistently across shipments
This check is especially important for Amazon FBA, Shopify, eBay, TikTok Shop and other international ecommerce operations.
Do not overlook the 366-day IOR inactivity rule
This new Form 5106 enforcement follows a separate CBP change.
From 16 July 2026, CBP will also apply its separate rule on IOR inactivity. Under that rule, an IOR number that has seen no entry activity for 366 consecutive days may be subject to additional verification or inactivation. This means that even if your Form 5106 data is accurate and complete, an extended period without importing could still trigger a compliance review.
If you have multiple IOR numbers across different entities or business lines, check whether any have been dormant for close to a year. If so, consider whether you still need that IOR registered, or whether consolidating activity under a single, compliant record makes more sense for your operations.
Staying proactive on both fronts—accurate Form 5106 data and active IOR usage—will help you avoid unnecessary disruption to your US import supply chain.
