Startup business

25/01/2018 13:26:25
I am based in the U.K. Thinking about starting as a sole trader and selling handmade products of suppliers based in Turkey, on online marketplaces such as Etsy and Amazon. The customer will be ordering from my Etsy, amazon or another e-commerce shop. I will be fulfilling the order with my supplier in Turkey. The suplier will be sending orders directly to the customers in the UK or possibly other countries too. i am wondering what my tax responsibilies will be, who will be billing the customer and who will be paying VAT and import tax. If any foreign tax was to be deducted will I be able to claim foreign tax credit relief even if I am not VAT registered?.

Re:Startup business

25/01/2018 14:19:33
If you commence as a sole trader then you would need to register for Self-assessment and declare any income/expenses through a self-assessment tax return. Registering for this can be done online.


We are unable to comment on the VAT and import tax implication as we only deal with personal tax here. The customer may wish to contact VAT and Customs to answer that part of their query.


If the earnings from Turkey are declared in the UK due to the customer being resident here, and tax is taken off at source in Turkey, then we can give Foreign tax credit relief for this.