Amazon FBA Calculator UK (with VAT)
Work out real profit on amazon.co.uk in pounds — after 20% VAT, the referral fee, FBA fulfilment fee, storage and ads. Works for VAT-registered and non-registered sellers. Free, no sign-up.
Get the exact FBA fee for your product size from Amazon's Revenue Calculator in Seller Central. Amazon adds 20% VAT to its fees for UK sellers; VAT-registered sellers can reclaim it, so this calculator adds it only when you are not registered.
How profit is calculated on amazon.co.uk
UK prices on Amazon include VAT. If you are VAT-registered, one sixth of the price (20% ÷ 120%) belongs to HMRC, so the revenue you keep is price ÷ 1.2. If you are not registered you keep the full price, but you cannot reclaim the VAT that Amazon charges on its own fees, so those fees cost you 20% more.
The referral fee is a percentage of the full price the customer pays, including VAT. The FBA fee depends on the size tier and weight of the packaged item. Add storage, advertising and your landed cost (unit cost, shipping into the fulfilment centre, prep and duty) to see what is really left.
Profit = revenue kept − landed cost − referral fee − FBA fee − storage − ads. Margin = profit ÷ revenue kept. ROI = profit ÷ landed cost.
Do I need to register for UK VAT to sell on Amazon?
| Your situation | VAT registration |
|---|---|
| UK-established business | Required once your taxable turnover passes £90,000 in a rolling 12 months; you can register voluntarily below it |
| Seller established outside the UK (for example in India, the US or China) holding stock in UK fulfilment centres | Required from the first sale — the £90,000 threshold does not apply to non-established businesses |
If you are established outside the UK, Amazon deducts and pays the VAT on your sales to UK consumers itself, so the money you keep is still the price ÷ 1.2. Rules change and there are exceptions; confirm your position with HMRC or a UK accountant.
Example: a £19.99 product
With the default numbers above, a VAT-registered seller keeps £16.66 after VAT, pays about £3.00 in referral fee, £2.70 FBA fee, £0.10 storage and £1.50 ads, and has a landed cost of £5.10 — leaving roughly £4.26 profit per unit (about a 26% margin). The same product sold without VAT registration keeps the full £19.99 but pays VAT on Amazon's fees.
Frequently asked questions
How do I calculate Amazon FBA fees in the UK?
Add the referral fee (a percentage of the VAT-inclusive price, 15% for most categories) to the FBA fulfilment fee for your size tier and weight, plus monthly storage. Amazon adds 20% VAT to these fees for UK sellers, which VAT-registered sellers can reclaim.
Is the Amazon UK referral fee charged on the price including VAT?
Yes. On amazon.co.uk the referral fee is calculated on the total price the customer pays, which includes VAT.
Do non-UK sellers need a UK VAT number to sell on Amazon UK?
Generally yes. Businesses established outside the UK that sell goods held in the UK must register for VAT from their first sale, because the £90,000 threshold only applies to UK-established businesses. Check with HMRC or an accountant.
What is a good profit margin on Amazon UK?
Many sellers aim for 25–30% or more after advertising and VAT, but the right number depends on the category, return rate and ad spend.
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