Setting up registered UAE business but selling only in UK
Hi i have a free zone company registered in UAE and want to sell only in UK, How do i go about setting up my seller account, is this allowed to have UAE business and sell only in UK, i am living in UK but want to have tax free earnings, i have seen other UK sellers with there business registered in UAE so wanted more information from anyone on here that can help, thanks
Setting up registered UAE business but selling only in UK
Hi i have a free zone company registered in UAE and want to sell only in UK, How do i go about setting up my seller account, is this allowed to have UAE business and sell only in UK, i am living in UK but want to have tax free earnings, i have seen other UK sellers with there business registered in UAE so wanted more information from anyone on here that can help, thanks
16 replies
Seller_7VbclcPFFRTnc
Don’t we all …
Speak with a qualified uk accountant you’ll find as you are in uk , with stock in uk, selling to uk sellers, you cannot do what you want to do
Seller_jeHAq028Nn59S
We where contacted recently by Amazon to send our products for FBA to the UAE Freezone with no VAT implications. I am not sure however that it is the same in reverse.
Seller_jeHAq028Nn59S
The onboarding was being dealt with by the team at amazon.de
I want to introduce you to our newly launched Dubai Freezone# FBA Program in the United Arab Emirates. The program allows you to sell your products via FBA with no UAE VAT compliance obligation* . You are eligible for this program only if you are not undertaking any business operations in the UAE currently and have not made a sale in the UAE with inventory stored in the UAE.
# Freezone refers to “Designated Zone” terminology used for VAT purposes
What is the Program about?
Dubai Freezone FBA aims to simplify the experience for Sellers while allowing you to sell your products in UAE via FBA without any VAT compliance obligation in UAE* .
How does it work?
- Amazon manages destination inventory management and customer fulfillment.
- Your orders will be fulfilled by Amazon with fast promises.
- We will provide Amazon Fulfillment (FBA) for customers in UAE, KSA and regional export countries (Oman, Bahrain, Kuwait, etc.) on out of country selection from selling partners who will store their inventory in our freezone fulfilment center.
How can I register?
Please share the following information via email with me:
- Seller name (as per Seller Central)
- Full legal name
- Signatory name
- Job Title
Learn more
- Dubai Freezone FBA Program Selling Partner Deck
- Partnership offer with RSA Global
- Help Page
- Sell in the Middle East – Amazon Global Selling
Find here the list of ASINs I mentioned:
XX
XX
XX
- Subject that you are not undertaking any other business operations in UAE and meeting all the requirements under UAE tax laws to qualify your sales as out of VAT scope. Please consult your tax advisor for detailed tax implications.
Seller_qZO3ZCjoBXEeL
You will need to talk to an accountant however:
Generally speaking - UK residents are taxed on Global Income:
If you sell goods that are located in the UAE to customers in the UK then VAT must be charged on those sales.
If through an online marketplace then the marketplace is responsible for collecting and remitting the VAT.
In summary, unless your accountant has advised you otherwise, UK tax is going to have to be paid. Corporation tax in the UAE is lower than the UK, so you may make some savings there if that is how your business is structured, but overseas dividends will still be taxable in the UK for a UK resident.
BTW - you may want to check that your business will still qualify for the UAE Freezone after June 2023.
