Hey guys, I've recently started Amazon to eBay dropshipping in the UK and wondering what's the deal with VAT. As many of you know this business model is based on volume with minimal profits per transaction and paying any % of VAT on top would make it impossible due to the low profit margins. However, with this volume the £82k treshold is reached very quickly. For the record, I am not a UK national or resident and don't have any plans to visit the country either. I receive payments via PayPal and purchase items on Amazon with my UK debit card. I am not registered as a sole trader and don't have a company either. However, it seems that not being based in the UK actually makes things even worse, as according to gov.uk in this case the treshold is 0 so anyone who is making business in the UK but not based there must register for VAT: 9.3 When must an NETP register for VAT in the UK? From 1 December 2012, if you make any taxable supplies (see paragraph 2.3) in the UK, you must register for VAT here, and account for any UK VAT to HMRC. Anyone know how the big UK dropshippers are handling this? There are clearly lots of people doing this and many doing volume exceeding an estimated turnover of £1m per year. Do these guys just fly under the radar? Is there a risk of e.g. PayPal reporting something to the tax authorities and closing my account? How big is this risk?